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

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 note released on Monday,Zacks.com reports.

Several other equities analysts have also recently issued reports on PLAY. Piper Sandler decreased their price objective on Dave & Buster's Entertainment from $30.00 to $26.00 and set a "neutral" rating for the company in a report on Tuesday, September 16th. Loop Capital upped their price target on 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. UBS Group lowered their price objective on Dave & Buster's Entertainment from $29.00 to $25.00 and set a "neutral" rating for the company in a research report on Tuesday, September 16th. BMO Capital Markets increased their price objective on Dave & Buster's Entertainment from $30.00 to $35.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 11th. Finally, Truist Financial lowered their price objective on Dave & Buster's Entertainment from $27.00 to $22.00 and set a "hold" rating for the company in a research report on Tuesday, September 16th. Two investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $31.33.

Dave & Buster's Entertainment Trading Down 3.8%

PLAY traded down $0.78 during trading on Monday, hitting $19.61. 2,781,460 shares of the stock were exchanged, compared to its average volume of 1,583,784. The firm has a 50 day simple moving average of $26.23 and a 200 day simple moving average of $24.01. The firm has a market cap of $679.88 million, a price-to-earnings ratio of 57.68 and a beta of 2.04. 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 quick ratio of 0.17 and a current ratio of 0.33.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last announced its quarterly 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). The company had revenue of $557.40 million during the quarter, compared to analysts' expectations of $565.43 million. Dave & Buster's Entertainment had a net margin of 0.46% and a return on equity of 29.24%. The company's revenue was up .1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.99 earnings per share. As a group, equities analysts expect that Dave & Buster's Entertainment will post 2.52 EPS for the current year.

Insider Buying and Selling

In related news, CEO Tarun Lal acquired 8,060 shares of the business's stock in a transaction dated Tuesday, July 22nd. The shares were acquired at an average cost of $31.26 per share, for a total transaction of $251,955.60. Following the acquisition, the chief executive officer directly owned 8,060 shares in the company, valued at approximately $251,955.60. The trade was a ∞ increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders own 2.02% of the company's stock.

Institutional Trading of Dave & Buster's Entertainment

Institutional investors have recently made changes to their positions in the stock. Tower Research Capital LLC TRC boosted its position in Dave & Buster's Entertainment by 292.4% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,062 shares of the restaurant operator's stock worth $152,000 after purchasing an additional 3,772 shares during the period. Manatuck Hill Partners LLC purchased a new stake in Dave & Buster's Entertainment during the 2nd quarter worth $3,610,000. HRT Financial LP purchased a new stake in Dave & Buster's Entertainment during the 2nd quarter worth $2,403,000. Engineers Gate Manager LP boosted its position in Dave & Buster's Entertainment by 674.4% during the 2nd quarter. Engineers Gate Manager LP now owns 110,401 shares of the restaurant operator's stock worth $3,321,000 after purchasing an additional 96,144 shares during the period. Finally, Brevan Howard Capital Management LP purchased a new stake in Dave & Buster's Entertainment during the 2nd quarter worth $752,000. 91.45% of the stock is owned by hedge funds and other institutional investors.

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.