Insider Activity Report: Dave & Buster’s Entertainment (PLAY)

Darin Harper, CFO at Dave & Buster’s Entertainment (PLAY), recently bought 13,578 shares. The buy increased his stake by 61%, and came to a total cost of $526,540.

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  • This is the first insider buy since April 2023, when a company SVP bought 500 shares, paying just over $17,000. Otherwise, company executives and directors have largely been sellers of shares, nearly all sales occurring following the exercise of stock options.

    Overall, Dave & Buster’s insiders own 1.6% of shares.

    Dave & Buster’s shares are down nearly 15% over the past year, far underperforming the overall stock market.

    However, earnings have slid by about 40%, but revenues are off by just 2%. If Dave & Buster’s can stabilize its costs, shares could move back to profitability.

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  • At its current prices, share trade at about 10 times forward earnings, a substantial discount to the overall stock market.

    Action to take: Shares have been pulling back since the spring, and are nearing a one-year low and area of key supports. The stock could potentially bottom out in a few weeks and trend higher over the last few months.

    For traders, the October $40 calls, last trading for about $3.10, could see mid double-digit returns if shares bottom out and trend higher over the summer.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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