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

Key Points

• Analysts' consensus is "Hold": eight brokerages cover Dave & Buster's (PLAY) with a split of 2 sells, 3 holds and 3 buys, and an average 12‑month price target of $21.83.
• Recent quarterly results were weak—Dave & Buster's reported a ($0.35) EPS (missing consensus by $0.74) and $529.6M revenue (vs. $556.56M est.), with negative net margin and ROE and analysts forecasting about -0.8 EPS for the fiscal year.
• Insider activity and market position: SVP Steve Klohn sold 6,989 shares recently, insiders own 2.02% of the stock, and the shares trade around $12.33 with a $428M market cap and a 12‑month range of $9.61–$35.53.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Get Free Report) has received an average recommendation of "Hold" from the eight brokerages that are currently covering the firm, MarketBeat reports. Two analysts have rated the stock with a sell rating, three have given a hold rating and three have issued a buy rating on the company. The average twelve-month price target among analysts that have covered the stock in the last year is $21.8333.

Several equities analysts have recently weighed in on PLAY shares. Truist Financial dropped their price objective on shares of Dave & Buster's Entertainment from $23.00 to $18.00 and set a "hold" rating on the stock in a research report on Thursday, January 8th. Zacks Research lowered shares of Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a research report on Thursday, April 2nd. Wall Street Zen lowered shares of Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a research report on Monday, April 6th. Weiss Ratings reissued a "sell (d)" rating on shares of Dave & Buster's Entertainment in a research report on Monday. Finally, UBS Group dropped their price objective on shares of Dave & Buster's Entertainment from $20.00 to $19.00 and set a "neutral" rating on the stock in a research report on Tuesday, January 6th.

Insider Buying and Selling

In related news, SVP Steve Klohn sold 6,989 shares of the firm's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $14.69, for a total transaction of $102,668.41. Following the transaction, the senior vice president directly owned 38,547 shares of the company's stock, valued at approximately $566,255.43. This trade represents a 15.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 2.02% of the company's stock.

Hedge Funds Weigh In On Dave & Buster's Entertainment

Hedge funds have recently bought and sold shares of the business. Advisory Services Network LLC bought a new position in Dave & Buster's Entertainment during the third quarter worth about $27,000. Caitong International Asset Management Co. Ltd increased its position in Dave & Buster's Entertainment by 616.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,942 shares of the restaurant operator's stock worth $31,000 after acquiring an additional 1,671 shares during the period. Leonteq Securities AG bought a new position in Dave & Buster's Entertainment during the fourth quarter worth about $42,000. Tower Research Capital LLC TRC increased its position in Dave & Buster's Entertainment by 292.4% during the second quarter. Tower Research Capital LLC TRC now owns 5,062 shares of the restaurant operator's stock worth $152,000 after acquiring an additional 3,772 shares during the period. Finally, Quadrant Capital Group LLC bought a new position in Dave & Buster's Entertainment during the third quarter worth about $104,000. 91.45% of the stock is owned by institutional investors.

Dave & Buster's Entertainment Stock Down 2.9%

Dave & Buster's Entertainment stock opened at $12.33 on Friday. The stock has a market capitalization of $428.34 million, a PE ratio of -8.62 and a beta of 1.83. Dave & Buster's Entertainment has a twelve month low of $9.61 and a twelve month high of $35.53. The company has a quick ratio of 0.19, a current ratio of 0.29 and a debt-to-equity ratio of 16.61. The company has a 50 day moving average of $13.39 and a 200-day moving average of $15.91.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last released its quarterly earnings results on Tuesday, March 31st. The restaurant operator reported ($0.35) earnings per share for the quarter, missing the consensus estimate of $0.39 by ($0.74). The company had revenue of $529.60 million during the quarter, compared to analyst estimates of $556.56 million. Dave & Buster's Entertainment had a negative net margin of 2.32% and a negative return on equity of 7.93%. The firm's quarterly revenue was down .9% compared to the same quarter last year. During the same quarter last year, the company earned $0.69 EPS. On average, equities research analysts anticipate that Dave & Buster's Entertainment will post -0.8 EPS for the current fiscal 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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