Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) Short Interest Update

Key Points

• Short interest fell 14.9% in March to 8,341,575 shares, equal to about 24.5% of shares shorted and a short-interest ratio of 3.5 days based on average volume.
• Quarterly results disappointed: PLAY reported EPS of ($0.35) versus a $0.39 consensus and revenue of $529.6M versus $556.6M, with negative net margin and return on equity.
• Mixed market signals: an SVP sold 6,989 shares on April 17 (insiders own ~2.02%), institutional ownership is ~91.45%, and analysts have cut targets leaving a consensus "Hold" with an average price target of $21.83.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Get Free Report) saw a significant decline in short interest in the month of March. As of March 31st, there was short interest totaling 8,341,575 shares, a decline of 14.9% from the March 15th total of 9,803,957 shares. Based on an average trading volume of 2,401,807 shares, the short-interest ratio is currently 3.5 days. Currently, 24.5% of the shares of the company are short sold.

Dave & Buster's Entertainment Price Performance

Shares of PLAY stock traded up $0.04 during trading on Friday, hitting $14.28. The company had a trading volume of 2,905,263 shares, compared to its average volume of 1,386,230. The company has a debt-to-equity ratio of 16.61, a quick ratio of 0.19 and a current ratio of 0.29. The firm has a market capitalization of $496.07 million, a P/E ratio of -9.99 and a beta of 1.83. The stock's 50-day moving average price is $13.88 and its 200 day moving average price is $16.13. Dave & Buster's Entertainment has a one year low of $9.61 and a one year high of $35.53.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last issued its quarterly earnings results on Tuesday, March 31st. The restaurant operator reported ($0.35) earnings per share (EPS) 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 the consensus estimate 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 company's quarterly revenue was down .9% on a year-over-year basis. During the same quarter last year, the firm posted $0.69 earnings per share. Equities analysts expect that Dave & Buster's Entertainment will post 2.52 EPS for the current fiscal year.

Insider Activity

In other news, SVP Steve Klohn sold 6,989 shares of the business's stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $14.69, for a total transaction of $102,668.41. Following the completion of the sale, the senior vice president owned 38,547 shares in the company, valued at $566,255.43. The trade was a 15.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 2.02% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Dave & Buster's Entertainment

Institutional investors have recently made changes to their positions in the stock. Advisory Services Network LLC bought a new stake in shares of Dave & Buster's Entertainment in the third quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd boosted its stake in shares of Dave & Buster's Entertainment by 616.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,942 shares of the restaurant operator's stock valued at $31,000 after buying an additional 1,671 shares during the period. Leonteq Securities AG bought a new stake in shares of Dave & Buster's Entertainment in the fourth quarter valued at approximately $42,000. Quadrant Capital Group LLC bought a new stake in shares of Dave & Buster's Entertainment in the third quarter valued at approximately $104,000. Finally, AlphaQuest LLC boosted its stake in shares of Dave & Buster's Entertainment by 415.9% in the third quarter. AlphaQuest LLC now owns 8,094 shares of the restaurant operator's stock valued at $147,000 after buying an additional 6,525 shares during the period. 91.45% of the stock is currently owned by institutional investors.

More Dave & Buster's Entertainment News

Here are the key news stories impacting Dave & Buster's Entertainment this week:

• Positive Sentiment: Senior management still retains a meaningful stake — after the April 17 sale the SVP owns 38,547 shares valued at roughly $566k, which may reassure some investors that insiders retain exposure. SEC Filing
• Neutral Sentiment: Trading volume is elevated versus average (about 2.9M vs ~1.39M), indicating larger investor activity that can amplify moves in either direction; this may reflect short‑term trading rather than a fundamental shift. MarketBeat PLAY Page
• Negative Sentiment: Insider sale: SVP Steve Klohn sold 6,989 shares at an average $14.69 on April 17, a 15.35% reduction in his holdings — insider selling can be interpreted negatively by the market. SEC Filing
• Negative Sentiment: Zacks Research issued a string of downward EPS revisions across FY2027–FY2029 (Q1–Q4 and full‑year cuts) and maintains a "Strong Sell" rating — these analyst reductions materially worsen near‑term earnings expectations and are likely weighing on sentiment. Bear of the Day: Dave & Buster's (PLAY)
• Negative Sentiment: Third‑party earnings forecasts/coverage: recent coverage (including FY2029 commentary) highlights lowered outlooks and continued analyst skepticism, adding pressure to the stock's valuation and investor confidence. FY2029 Forecast Article

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on PLAY shares. Weiss Ratings restated a "sell (d)" rating on shares of Dave & Buster's Entertainment in a report on Wednesday, January 21st. Piper Sandler reduced their price objective on Dave & Buster's Entertainment from $22.00 to $14.00 and set a "neutral" rating for the company in a report on Monday, April 6th. Wall Street Zen cut Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a report on Monday, April 6th. UBS Group reduced their price objective on Dave & Buster's Entertainment from $20.00 to $19.00 and set a "neutral" rating for the company in a report on Tuesday, January 6th. Finally, Zacks Research cut Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a report on Thursday, April 2nd. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $21.83.

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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