John Mulleady Takes Money Off The Table, Sells $175K In Dave & Buster's Enter Stock

Revealing a significant insider sell on December 26, John Mulleady, SVP at Dave & Buster's Enter PLAY, as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Mulleady executed a sale of 6,000 shares of Dave & Buster's Enter with a total value of $175,980.

As of Friday morning, Dave & Buster's Enter shares are down by 0.98%, currently priced at $29.26.

All You Need to Know 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.

Understanding the Numbers: Dave & Buster's Enter's Finances

Decline in Revenue: Over the 3 months period, Dave & Buster's Enter faced challenges, resulting in a decline of approximately -2.98% in revenue growth as of 31 October, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Insights into Profitability:

• Gross Margin: With a high gross margin of 85.03%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Dave & Buster's Enter's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of -0.84.

Debt Management: Dave & Buster's Enter's debt-to-equity ratio is notably higher than the industry average. With a ratio of 13.76, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 14.21 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.55, 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): Dave & Buster's Enter's EV/EBITDA ratio, lower than industry averages at 9.1, indicates attractively priced shares.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. 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.

The Relevance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Essential Transaction Codes Unveiled

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.

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.