Dave & Buster's Entertainment (NASDAQ:PLAY) Rating Lowered to "Strong Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Dave & Buster's (NASDAQ:PLAY) from a "hold" to a "strong sell" in a report released Monday.
• The company reported a quarterly loss of ($0.35) EPS versus a $0.39 estimate and revenue of $529.6M versus $556.6M, with a negative net margin (−2.32%) and negative ROE; shares opened at $12.35 and have a 52‑week range of $9.61–$35.53.
• Analysts are mixed — MarketBeat shows an average "Hold" rating with a consensus target of $23.83 (three Buys, four Holds, one Sell) and institutional ownership around 91.45%.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "strong sell" rating in a report released on Monday.

Other analysts have also issued reports about the company. Loop Capital set a $20.00 price target on Dave & Buster's Entertainment in a research note on Wednesday, December 10th. Zacks Research raised Dave & Buster's Entertainment from a "strong sell" rating to a "hold" rating in a research note on Thursday, December 11th. Benchmark upgraded shares of Dave & Buster's Entertainment from a "hold" rating to a "buy" rating and set a $30.00 price objective for the company in a report on Friday, January 16th. UBS Group cut their target price 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. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Dave & Buster's Entertainment in a report on Wednesday, January 21st. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $23.83.

Dave & Buster's Entertainment Price Performance

Shares of NASDAQ:PLAY opened at $12.35 on Monday. Dave & Buster's Entertainment has a 52-week low of $9.61 and a 52-week high of $35.53. The company has a market capitalization of $429.04 million, a PE ratio of -8.64 and a beta of 1.83. The company has a debt-to-equity ratio of 16.61, a quick ratio of 0.22 and a current ratio of 0.29. The company has a fifty day moving average of $14.99 and a 200-day moving average of $16.49.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last released its quarterly earnings data 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 firm had revenue of $529.60 million for 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 company's revenue was down .9% compared to the same quarter last year. During the same period last year, the business earned $0.69 EPS. On average, equities analysts predict that Dave & Buster's Entertainment will post 2.52 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in PLAY. Advisory Services Network LLC acquired a new position in shares of Dave & Buster's Entertainment during the third quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd grew its position in Dave & Buster's Entertainment by 616.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,942 shares of the restaurant operator's stock valued at $31,000 after purchasing an additional 1,671 shares during the period. Leonteq Securities AG acquired a new stake in Dave & Buster's Entertainment in the 4th quarter valued at $42,000. Tower Research Capital LLC TRC increased its stake 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 valued at $152,000 after purchasing an additional 3,772 shares in the last quarter. Finally, Quadrant Capital Group LLC bought a new stake in Dave & Buster's Entertainment during the 3rd quarter valued at $104,000. 91.45% of the stock is owned by institutional investors and hedge funds.

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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