A substantial acquisition of company stock options by Les Lehner, SVP at Dave & Buster’s Enter PLAY was reported on October 9, based on a new SEC filing.

What Happened: Lehner, SVP at Dave & Buster’s Enter, acquired stock options for 6,056 shares of PLAY. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The options allow Lehner to buy the company’s stock at $31.6 per share.

As of Thursday morning, Dave & Buster’s Enter shares are up by 3.32%, with a current price of $33.01. This implies that Lehner’s 6,056 shares have a value of $8,538.

Delving into Dave & Buster’s Enter’s Background

Dave & Buster’s Entertainment Inc owns and operates nearly a hundred entertainment and dining establishments in the United States where customers can eat, drink, play games, and watch televised sports. Each store offers a full menu of entries and appetizers, a complete selection of alcoholic and non-alcoholic beverages, and an extensive assortment of entertainment attractions centered around playing games and watching live sports and other televised events. It derives maximum revenue from Entertainment.

Dave & Buster’s Enter: Financial Performance Dissected

Revenue Growth: Dave & Buster’s Enter displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 2.77%. This indicates a notable increase in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Insights into Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 85.32%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Dave & Buster’s Enter’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.02.

Debt Management: Dave & Buster’s Enter’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 10.39, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 11.49, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.6 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 8.47, Dave & Buster’s Enter presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

A Closer Look at Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Dave & Buster’s Enter’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.