Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Analysts have a consensus “Hold” rating on Dave & Buster’s, with two sell, five hold and two buy recommendations. The average 12-month price target is $19.33.
• The company’s latest quarter fell short of expectations, reporting $0.22 in EPS versus $0.60 expected and revenue of $559.2 million versus $580.6 million; revenue declined 1.5% year over year.
• PLAY shares opened at $9.18, near their 52-week low, while institutional investors own 91.45% of the stock. The company also carries significant leverage, with a debt-to-equity ratio of 15.01.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Get Free Report) has earned an average recommendation of "Hold" from the nine brokerages that are presently covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a sell recommendation, five have given a hold recommendation and two have given a buy recommendation to the company. The average 12-month target price among analysts that have covered the stock in the last year is $19.3333.

Several research analysts recently issued reports on the company. BMO Capital Markets lowered their target price on Dave & Buster's Entertainment from $24.00 to $22.00 and set an "outperform" rating for the company in a research report on Tuesday, June 16th. Citizens Jmp started coverage on Dave & Buster's Entertainment in a research report on Monday, June 29th. They issued a "market perform" rating on the stock. UBS Group lowered their price objective on Dave & Buster's Entertainment from $13.00 to $12.00 and set a "neutral" rating for the company in a research report on Tuesday, June 16th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Dave & Buster's Entertainment in a research note on Friday, July 17th. Finally, Citigroup started coverage on Dave & Buster's Entertainment in a report on Monday, June 29th. They issued a "market perform" rating on the stock.

Institutional Investors Weigh In On Dave & Buster's Entertainment

Institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in Dave & Buster's Entertainment during the second quarter worth $36,725,000. Nomura Holdings Inc. boosted its position in Dave & Buster's Entertainment by 532.9% during the third quarter. Nomura Holdings Inc. now owns 2,411,191 shares of the restaurant operator's stock valued at $43,787,000 after acquiring an additional 2,030,186 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund grew its holdings in Dave & Buster's Entertainment by 40.1% during the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,515,000 shares of the restaurant operator's stock worth $24,558,000 after acquiring an additional 434,000 shares during the period. Goldman Sachs Group Inc. raised its position in shares of Dave & Buster's Entertainment by 22.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,511,591 shares of the restaurant operator's stock worth $24,503,000 after acquiring an additional 276,064 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of Dave & Buster's Entertainment by 44.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,509,752 shares of the restaurant operator's stock worth $16,351,000 after acquiring an additional 468,174 shares in the last quarter. 91.45% of the stock is owned by institutional investors.

Dave & Buster's Entertainment Trading Down 6.9%

PLAY opened at $9.18 on Friday. The company has a debt-to-equity ratio of 15.01, a current ratio of 0.29 and a quick ratio of 0.20. Dave & Buster's Entertainment has a fifty-two week low of $9.10 and a fifty-two week high of $25.69. The company's 50 day moving average price is $10.51 and its two-hundred day moving average price is $12.01. The firm has a market capitalization of $319.37 million, a price-to-earnings ratio of -4.86 and a beta of 1.86.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last issued its quarterly earnings results on Monday, June 15th. The restaurant operator reported $0.22 EPS for the quarter, missing analysts' consensus estimates of $0.60 by ($0.38). Dave & Buster's Entertainment had a negative return on equity of 24.19% and a negative net margin of 3.09%.The business had revenue of $559.20 million for the quarter, compared to analyst estimates of $580.60 million. During the same quarter last year, the firm posted $0.76 EPS. Dave & Buster's Entertainment's revenue for the quarter was down 1.5% on a year-over-year basis. As a group, research analysts predict that Dave & Buster's Entertainment will post -1.1 earnings per share for the current year.

About Dave & Buster's Entertainment

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.

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