Darin Harper At Dave & Buster's Enter Acquires Stock Options

A substantial insider move unfolded on October 9, as Harper, Chief Financial Officer at Dave & Buster's Enter PLAY, reported the acquisition of stock options for 9,085 shares in an SEC filing.

What Happened: Harper, Chief Financial Officer at Dave & Buster's Enter, acquired stock options for 9,085 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 Harper to buy the company's stock at $31.6 per share.

The Thursday morning market activity shows Dave & Buster's Enter shares up by 1.44%, trading at $32.41. This implies a total value of $7,358 for Harper's 9,085 shares.

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.

Unraveling the Financial Story of Dave & Buster's Enter

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 competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Profitability Metrics: Unlocking Value

• 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 is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.02.

Debt Management: Dave & Buster's Enter's debt-to-equity ratio surpasses industry norms, standing at 10.39. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 11.49 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• 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): With an EV/EBITDA ratio lower than industry benchmarks at 8.47, Dave & Buster's Enter presents an attractive value opportunity.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Pay Attention to Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Cracking Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.