Megan Estrada At Dave & Buster's Enter Acquires Stock Options

Megan Estrada, Chief Marketing Officer at Dave & Buster's Enter PLAY, reported acquisition of company stock options on October 9, according to a new SEC filing.

What Happened: Estrada, Chief Marketing Officer 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 Estrada to buy the company's stock at $31.6 per share.

The latest update on Thursday morning shows Dave & Buster's Enter shares up by 3.32%, trading at $33.01. At this price, Estrada's 6,056 shares are worth $8,538.

Discovering Dave & Buster's Enter: A Closer Look

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: A Financial Overview

Positive Revenue Trend: Examining Dave & Buster's Enter's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.77% as of 31 July, 2024, showcasing a substantial increase in 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.

Interpreting Earnings Metrics:

• 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): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.02, Dave & Buster's Enter showcases strong earnings per share.

Debt Management: Dave & Buster's Enter's debt-to-equity ratio stands notably higher than the industry average, reaching 10.39. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: Dave & Buster's Enter's P/E ratio of 11.49 is below the industry average, suggesting the stock may be undervalued.

• 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): Dave & Buster's Enter's EV/EBITDA ratio at 8.47 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

Transaction Codes To Focus On

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.