Zoe’s Kitchen, Inc. (NYSE: ZOES) must think that another up day in the markets means that it is time to rally just like it was a normal IPO day elsewhere. Wednesday’s gain in the Mediterranean casual dining cafe chain was in the double-digits right before the closing bell.
Zoe’s Kitchen raised $87.5 when it sold just over 5.8 million shares at $15.00 per share, while the restaurant chain’s price range had been $13 to $15 per share. Shares of Zoe’s Kitchen rose nearly 65% to $24.72 on the debut, but shares have risen each day since as well – to $25.10 on Monday and $25.20 on Tuesday.
While this should have been known, it turns out that SEC filing showed insider buying at the IPO price on the day of the IPO. These purchases came from its Chief Financial Officer, Vice President, Chief Operating Officer, Director, Chief Executive Officer, and other officers. Again, we feel this should have been known but it is the only news to account for such a buying interest here.
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Now the gain is a mysterious move of another 11% up to $28.00 just before the closing bell on Wednesday. Trading volume is not extreme at 575,000 shares, although the free float outside of institutions may be incredibly small here.
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