Michael Quartieri, CFO at Dave & Buster’s Entertainment (PLAY), recently increased his holdings by 5,000 shares. The buy increased his total ownership by nearly 14 percent, and came to a total cost of $158,650.
This marks the first insider activity since the company CEO bought 33,400 shares back in July. And going further back, insider buys have exceeded insider sales this year. Going back further, insiders were only sellers in 2020 and 2021.
Overall, company insiders own 2.3 percent of shares.
The entertainment venue has seen shares drop 17 percent in the past year, about in-line with the S&P 500. Revenue is up 24 percent over the past year, but earnings are lower on higher costs. That trend may continue as long as inflation remains high.
Action to take: Shares are getting into a reasonable price range for long-term buyers here, as the stock trades at about 1 times its price to sales ratio, down from 3 times as much in the summer of 2021. And shares go for 12 times earnings, which is inexpensive for the entertainment space. Shares do not currently pay a dividend.
For traders, shares may have hit a double bottom in September and may be poised to head higher in the coming months. The April 2023 $35 calls, last going for about $4.75, could deliver mid-to-high double-digit returns.
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.