Kevin Sheehan, Interim CEO at Dave & Buster’s Entertainment (PLAY), recently added 10,000 shares. The buy increased his holdings by 6.5 percent, and came to a total purchase price of $405,800.
This marks the first insider buy of the year. The CEO was the last buyer of 2021 as well. However, other companies insiders, all C-suite executives, have all been regular sellers of shares going back to 2019.
Overall, insiders own about 2.2 percent of the company.
Shares of the entertainment company are down about 7 percent over the past year, compared to about an 8 percent gain for the S&P 500 index at this point. Revenue is up nearly 194 percent, but the company hasn’t been profitable, with the most recent valuation putting the company at 21 times forward earnings.
The entertainment and dining venue company operates 144 locations in 40 states.
Action to take: The company is attractively valued going forward, and is still coming off the extreme effects of the shutdown and reopening of public events over the past two years. Investors won’t receive a dividend, however.
For traders, shares look ready for a rebound after the most recent pullback. The July $45 calls, last going for about $3.05, offer a way to leverage a rebound in shares in the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.