Dave & Buster’s Entertainment (NASDAQ:PLAY) Trading Down 6% – Should You Sell?

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY)’s stock price fell 6% during mid-day trading on Monday . The company traded as low as $18.08 and last traded at $18.1140. 95,209 shares were traded during mid-day trading, a decline of 90% from the average session volume of 960,419 shares. The stock had previously closed at $19.27.

Wall Street Analyst Weigh In

Several analysts have recently commented on PLAY shares. Benchmark raised shares of Dave & Buster’s Entertainment from a “hold” rating to a “buy” rating and set a $30.00 price objective for the company in a research report on Friday, January 16th. Truist Financial cut their target price on shares of Dave & Buster’s Entertainment from $23.00 to $18.00 and set a “hold” rating on the stock in a research note on Thursday, January 8th. Loop Capital set a $20.00 price target on shares of Dave & Buster’s Entertainment in a research note on Wednesday, December 10th. Zacks Research upgraded shares of Dave & Buster’s Entertainment from a “strong sell” rating to a “hold” rating in a report on Thursday, December 11th. Finally, UBS Group reduced their target price on Dave & Buster’s Entertainment from $20.00 to $19.00 and set a “neutral” rating for the company in a research note on Tuesday, January 6th. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $23.83.

Dave & Buster’s Entertainment Stock Performance

The stock has a market cap of $631.18 million, a price-to-earnings ratio of -454.89 and a beta of 1.78. The company’s fifty day simple moving average is $18.23 and its two-hundred day simple moving average is $19.77. The company has a debt-to-equity ratio of 11.87, a current ratio of 0.32 and a quick ratio of 0.22.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last posted its earnings results on Tuesday, December 9th. The restaurant operator reported ($1.22) earnings per share for the quarter, missing analysts’ consensus estimates of ($1.16) by ($0.06). The business had revenue of $448.20 million during the quarter, compared to analyst estimates of $460.66 million. Dave & Buster’s Entertainment had a return on equity of 19.13% and a net margin of 0.01%.The company’s revenue was down 1.1% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.45) EPS. On average, analysts forecast that Dave & Buster’s Entertainment, Inc. will post 2.52 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Nomura Holdings Inc. grew its position in Dave & Buster’s Entertainment by 532.9% in the 3rd quarter. Nomura Holdings Inc. now owns 2,411,191 shares of the restaurant operator’s stock worth $43,787,000 after purchasing an additional 2,030,186 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Dave & Buster’s Entertainment by 99.9% in the second quarter. Arrowstreet Capital Limited Partnership now owns 999,554 shares of the restaurant operator’s stock valued at $30,067,000 after acquiring an additional 499,412 shares in the last quarter. SG Americas Securities LLC increased its position in shares of Dave & Buster’s Entertainment by 232.3% during the fourth quarter. SG Americas Securities LLC now owns 634,148 shares of the restaurant operator’s stock valued at $10,280,000 after acquiring an additional 443,308 shares during the last quarter. Fund 1 Investments LLC bought a new stake in Dave & Buster’s Entertainment during the third quarter worth $7,791,000. Finally, CIBC Bancorp USA Inc. purchased a new position in Dave & Buster’s Entertainment in the third quarter worth $6,118,000. 91.45% of the stock is owned by institutional investors.

Dave & Buster’s Entertainment Company Profile

Dave & Buster’s Entertainment, Inc operates a chain of combined restaurant and entertainment venues designed to appeal to families, young adults and corporate groups. Each location features a full-service restaurant and bar alongside an arcade gaming area with ticket-based redemption, virtual reality experiences and skill-based games. Many venues also include multiple large-screen televisions and a sports bar atmosphere, catering to fans who wish to watch live sporting events in a social setting.

The company was founded in 1982 by David Corriveau and James “Buster” Corley, opening its first location in Dallas, Texas.