Trade Alert: Chief Information Officer Of Dave & Buster's Entertainment Steven Klohn Has Sold Stock

Some Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) shareholders may be a little concerned to see that the Chief Information Officer, Steven Klohn, recently sold a substantial US$545k worth of stock at a price of US$31.13 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 54% of their entire holding.

See our latest analysis for Dave & Buster's Entertainment

Dave & Buster's Entertainment Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Chair of the Board, Kevin Sheehan, sold US$4.9m worth of shares at a price of US$65.72 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$32.52. So it is hard to draw any strong conclusion from it.

In total, Dave & Buster's Entertainment insiders sold more than they bought over the last year. 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!

I will like Dave & Buster's Entertainment better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Dave & Buster's Entertainment insiders own about US$22m worth of shares. That equates to 1.7% of the company. 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?

Our data shows a little more insider selling than buying in the last three months. But the difference isn't enough to have us worried. Recent insider selling makes us a little nervous, in light of the broader picture of Dave & Buster's Entertainment insider transactions. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dave & Buster's Entertainment. Our analysis shows 2 warning signs for Dave & Buster's Entertainment (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.