A noteworthy insider acquisition was disclosed on October 9, as Wehner, SVP at Dave & Buster’s Enter PLAY, reported the acquisition of stock options for 8,328 shares.

What Happened: In a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Wehner, SVP at Dave & Buster’s Enter, acquired stock options for 8,328 shares of PLAY. These options provide Wehner with the right to purchase the company’s stock at $31.6 per share.

Dave & Buster’s Enter shares are trading, exhibiting up of 1.44% and priced at $32.41 during Thursday’s morning. This values Wehner’s 8,328 shares at $11,742.

About Dave & Buster’s Enter

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’s remarkable performance in 3 months is evident. As of 31 July, 2024, the company achieved an impressive revenue growth rate of 2.77%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Profitability Indicators:

• Gross Margin: Achieving a high gross margin of 85.32%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Dave & Buster’s Enter’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.02.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 10.39, caution is advised due to increased financial risk.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The P/E ratio of 11.49 is lower than the industry average, implying a discounted valuation for Dave & Buster’s Enter’s stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.6, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 8.47 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Pay Attention to Insider Transactions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies 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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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