Anyone interested in Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) should probably be aware that the Independent Director, Michael Griffith, recently divested US$228k worth of shares in the company, at an average price of US$35.23 each. The eyebrow raising move amounted to a reduction of 11% in their holding.
The Last 12 Months Of Insider Transactions At Dave & Buster’s Entertainment
Over the last year, we can see that the biggest insider purchase was by Senior VP and Chief Technology & Information Officer Steven Klohn for US$503k worth of shares, at about US$35.22 per share. That implies that an insider found the current price of US$36.57 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid US$2.2m for 63.62k shares. On the other hand they divested 6.47k shares, for US$228k. In the last twelve months there was more buying than selling by Dave & Buster’s Entertainment insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Dave & Buster’s Entertainment insiders own 3.2% of the company, worth about US$51m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Dave & Buster’s Entertainment Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. In contrast, they appear keener if you look at the last twelve months. It’s good to see insiders are shareholders. So we’re not overly bothered by recent selling. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Dave & Buster’s Entertainment. For example, Dave & Buster’s Entertainment has 2 warning signs (and 1 which doesn’t sit too well with us) we think you should know about.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Valuation is complex, but we’re helping make it simple.
Find out whether Dave & Buster’s Entertainment is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.