Christopher Morris, CEO at Dave & Buster’s Entertainment (PLAY), recently bought 33,400 shares. The buy increased his holdings by nearly 226 percent, and came to a total price of just over $1.02 million.
Company insiders have a mixed history with shares over the past year, with a number of executive buys of shares. However, some non-C-suite executives have been sellers of shares in the past year. Over the past three years, company insiders have mostly been sellers.
Overall, company insiders own about 2.2 percent of shares.
The company is coming off a strong year, with earnings up 241 percent in the past year and revenue up 70 percent. That may slow in the coming quarters, but should still remain strong. Plus, the stock trades at about 1.06 times price to sales, off of a 4.6 multiple in the prior year.
Action to take: The stock currently goes for about 10 times earnings. Even with a slowdown, it looks less expensive than the overall market. Investors may like shares here, although the stock doesn’t currently pay a dividend.
The January $40 calls, last going for about $2.90, look like an attractive play here. Traders may want to consider scaling into the options in the coming weeks, taking advantage of a further downswing in the markets first.
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.