Dave & Buster’s Entertainment Chief Information Officer Steven Klohn Sells 34% Of Holding

We’d be surprised if Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) shareholders haven’t noticed that the Chief Information Officer, Steven Klohn, recently sold US$103k worth of stock at US$14.69 per share. That sale was 34% of their holding, so it does make us raise an eyebrow.

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

In the last twelve months, the biggest single purchase by an insider was when CEO & Director Tarun Lal bought US$252k worth of shares at a price of US$31.26 per share. That means that an insider was happy to buy shares at above the current price of US$12.33. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. To us, it’s very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 12.29k shares worth US$336k. But insiders sold 12.92k shares worth US$297k. Overall, Dave & Buster’s Entertainment insiders were net buyers during the last year. The average buy price was around US$27.36. I’d consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Dave & Buster’s Entertainment

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Dave & Buster’s Entertainment Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Dave & Buster’s Entertainment insiders own about US$10m worth of shares. That equates to 2.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Dave & Buster’s Entertainment Insiders?

An insider sold stock recently, but they haven’t been buying. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So we’re not overly bothered by recent selling. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. Case in point: We’ve spotted 3 warning signs for Dave & Buster’s Entertainment you should be aware of, and 1 of them is concerning.

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.