Buffalo Wild Wings (BWLD) Stock Climbs on Marcato Activist Stake

Buffalo Wild Wings (BWLD) stock is rising on Monday afternoon after Marcato Capital revealed a new 5.1% stake in the company.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Buffalo Wild Wings (BWLD) are spiking 4.88% to $147.64 on heavy trading volume Monday afternoon after Richard McGuire's Marcato Capital Management unveiled a new 5.1% stake in the company, the Fly reports.

The SEC filing allows for activism and represents 950,000 shares.

"The reporting persons acquired the shares over which they exercise beneficial ownership in the belief that the shares are undervalued and are an attractive investment," the filing stated.

Marcato had discussions with directors and officers of the company and anticipates having further talks, the Fly noted.

The discussions may include reviewing options for enhancing shareholder value through various strategic alternatives or operational or management initiatives, such as improving returns on invested capital and determining appropriate capital structure.

About 1.16 million of the company's shares changed hands today vs. its average volume of 552,210 shares per day.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures.

The team believes its strengths outweigh the fact that the company shows low profit margins.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: BWLD

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