Since we last covered the “eatertainment chain” Dave & Buster’s in a Buyback Wednesdays article in April 2023, a lot has changed at the company, warranting a fresh examination. Over this period, the stock dropped from $35 to the $29 range, reflecting a ~21% decline. We saw C-suite changes, rapid store expansion and fast-paced remodeling of existing stores.
Insiders have purchased shares on the open market and the company has been buying back its own stock. This “double dipper” scenario (insider buying + buybacks), coupled with a high short interest (17.91% of float) and a recently announced $100 million buyback plan makes this an interesting setup.