Zacks Research Downgrades Dave & Buster’s Entertainment (NASDAQ:PLAY) to Strong Sell

Dave & Buster’s Entertainment (NASDAQ:PLAY) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Monday,Zacks.com reports.

A number of other equities research analysts have also issued reports on the stock. Piper Sandler dropped their price objective on shares of Dave & Buster’s Entertainment from $30.00 to $26.00 and set a “neutral” rating for the company in a report on Tuesday. Loop Capital increased their target price on shares of Dave & Buster’s Entertainment from $35.00 to $46.00 and gave the stock a “buy” rating in a research note on Wednesday, June 11th. Truist Financial lowered their target price on shares of Dave & Buster’s Entertainment from $27.00 to $22.00 and set a “hold” rating for the company in a research note on Tuesday. UBS Group dropped their target price on shares of Dave & Buster’s Entertainment from $29.00 to $25.00 and set a “neutral” rating for the company in a report on Tuesday. Finally, BMO Capital Markets lifted their target price on shares of Dave & Buster’s Entertainment from $30.00 to $35.00 and gave the company an “outperform” rating in a report on Wednesday, June 11th. Two equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $31.33.

Dave & Buster’s Entertainment Trading Down 16.7%

Shares of PLAY opened at $20.14 on Monday. The company has a current ratio of 0.26, a quick ratio of 0.17 and a debt-to-equity ratio of 10.69. Dave & Buster’s Entertainment has a 12-month low of $15.08 and a 12-month high of $43.73. The firm has a 50-day moving average price of $26.94 and a 200 day moving average price of $23.98. The firm has a market capitalization of $696.44 million, a P/E ratio of 59.24 and a beta of 2.04.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last announced its quarterly earnings data on Monday, September 15th. The restaurant operator reported $0.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.92 by ($0.60). Dave & Buster’s Entertainment had a net margin of 0.46% and a return on equity of 28.95%. The firm had revenue of $557.40 million during the quarter, compared to analysts’ expectations of $565.43 million. During the same period in the prior year, the company posted $0.99 EPS. The company’s revenue for the quarter was up .1% compared to the same quarter last year. Sell-side analysts forecast that Dave & Buster’s Entertainment will post 2.52 EPS for the current year.

Insider Buying and Selling at Dave & Buster’s Entertainment

In other news, CEO Tarun Lal bought 8,060 shares of the business’s stock in a transaction that occurred on Tuesday, July 22nd. The shares were purchased at an average cost of $31.26 per share, for a total transaction of $251,955.60. Following the completion of the purchase, the chief executive officer owned 8,060 shares of the company’s stock, valued at approximately $251,955.60. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 2.02% of the company’s stock.

Hedge Funds Weigh In On Dave & Buster’s Entertainment

Hedge funds have recently added to or reduced their stakes in the stock. Signaturefd LLC increased its stake in Dave & Buster’s Entertainment by 1,427.5% in the first quarter. Signaturefd LLC now owns 4,277 shares of the restaurant operator’s stock valued at $75,000 after purchasing an additional 3,997 shares during the last quarter. M.E. Allison & CO. Inc. purchased a new position in Dave & Buster’s Entertainment in the first quarter valued at approximately $1,542,000. GAMMA Investing LLC increased its stake in Dave & Buster’s Entertainment by 71,493.5% in the first quarter. GAMMA Investing LLC now owns 76,605 shares of the restaurant operator’s stock valued at $1,346,000 after purchasing an additional 76,498 shares during the last quarter. Bank of America Corp DE increased its stake in Dave & Buster’s Entertainment by 50.7% in the fourth quarter. Bank of America Corp DE now owns 212,720 shares of the restaurant operator’s stock valued at $6,209,000 after purchasing an additional 71,520 shares during the last quarter. Finally, Invesco Ltd. increased its stake in Dave & Buster’s Entertainment by 16.7% in the first quarter. Invesco Ltd. now owns 243,849 shares of the restaurant operator’s stock valued at $4,284,000 after purchasing an additional 34,935 shares during the last quarter. 91.45% of the stock is currently owned by hedge funds and other institutional investors.

About Dave & Buster’s Entertainment

Dave & Buster's Entertainment, Inc owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events.