Dave & Buster's Entertainment (NASDAQ:PLAY) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Dave & Buster's Entertainment has been downgraded from a "hold" to a "strong sell" rating by Zacks Research, indicating significant concerns about the company's future performance.
• The company's stock is currently experiencing a downward trend, having dropped 16.7% recently, with analysts suggesting a consensus price target of $31.33.
• Despite the negative outlook, CEO Tarun Lal has increased his stake in the company by purchasing 8,060 shares, reflecting confidence in the firm's long-term potential.

Zacks Research cut shares of Dave & Buster's Entertainment (NASDAQ:PLAY - Free Report) from a hold rating to a strong sell rating in a research report sent to investors on Monday,Zacks.com reports.

PLAY has been the topic of a number of other research reports. Truist Financial decreased their target price on shares of Dave & Buster's Entertainment from $27.00 to $22.00 and set a "hold" rating on the stock in a research report on Tuesday. Loop Capital boosted their price objective on shares of Dave & Buster's Entertainment from $35.00 to $46.00 and gave the company a "buy" rating in a research report on Wednesday, June 11th. Piper Sandler lowered 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 research report on Tuesday. BMO Capital Markets upped their price target on shares of Dave & Buster's Entertainment from $30.00 to $35.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 11th. Finally, UBS Group cut 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 research note on Tuesday. Two equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $31.33.

Dave & Buster's Entertainment Price Performance

Dave & Buster's Entertainment stock traded down $0.78 during mid-day trading on Monday, reaching $19.61. The company had a trading volume of 2,781,460 shares, compared to its average volume of 1,583,784. Dave & Buster's Entertainment has a 1 year low of $15.08 and a 1 year high of $43.73. The company has a debt-to-equity ratio of 9.32, a current ratio of 0.33 and a quick ratio of 0.17. The company has a market capitalization of $679.88 million, a P/E ratio of 57.68 and a beta of 2.04. The stock's 50-day simple moving average is $26.23 and its 200-day simple moving average is $23.98.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last issued its earnings results 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 29.24%. The company had revenue of $557.40 million during the quarter, compared to analysts' expectations of $565.43 million. During the same period last year, the business posted $0.99 earnings per share. The company's quarterly revenue was up .1% on a year-over-year basis. On average, equities analysts predict that Dave & Buster's Entertainment will post 2.52 EPS for the current year.

Insider Activity

In other Dave & Buster's Entertainment news, CEO Tarun Lal acquired 8,060 shares of the stock in a transaction dated Tuesday, July 22nd. The shares were bought at an average cost of $31.26 per share, for a total transaction of $251,955.60. Following the completion of the acquisition, the chief executive officer directly owned 8,060 shares of the company's stock, valued at approximately $251,955.60. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.02% of the stock is owned by company insiders.

Hedge Funds Weigh In On Dave & Buster's Entertainment

A number of institutional investors have recently added to or reduced their stakes in PLAY. Arrowstreet Capital Limited Partnership boosted its position 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 during the period. Woodline Partners LP bought a new position in Dave & Buster's Entertainment during the 4th quarter worth approximately $6,702,000. Clearline Capital LP grew its position in shares of Dave & Buster's Entertainment by 17.7% during the 1st quarter. Clearline Capital LP now owns 1,349,236 shares of the restaurant operator's stock worth $23,706,000 after buying an additional 203,012 shares during the period. JPMorgan Chase & Co. grew its position in shares of Dave & Buster's Entertainment by 147.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 329,008 shares of the restaurant operator's stock worth $9,897,000 after buying an additional 195,834 shares during the period. Finally, Nuveen LLC acquired a new stake in Dave & Buster's Entertainment in the 1st quarter valued at $2,453,000. 91.45% of the stock is currently owned by institutional investors and hedge funds.

Dave & Buster's Entertainment Company Profile

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.