Dave & Buster's Entertainment Insiders Placed Bullish Bets Worth US$3.2m

In the last year, multiple insiders have substantially increased their holdings of Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Dave & Buster's Entertainment

The Last 12 Months Of Insider Transactions At Dave & Buster's Entertainment

In the last twelve months, the biggest single purchase by an insider was when CEO & Director Christopher Morris bought US$1.0m worth of shares at a price of US$30.54 per share. Even though the purchase was made at a significantly lower price than the recent price (US$44.56), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Dave & Buster's Entertainment insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders At Dave & Buster's Entertainment Have Bought Stock Recently

We saw some Dave & Buster's Entertainment insider buying shares in the last three months. Senior VP & Chief International Development Officer Antonio Bautista purchased US$17k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.2% of Dave & Buster's Entertainment shares, worth about US$62m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Dave & Buster's Entertainment Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Dave & Buster's Entertainment insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dave & Buster's Entertainment. At Simply Wall St, we've found that Dave & Buster's Entertainment has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.