Dave & Buster's Entertainment (NASDAQ:PLAY) Posts Earnings Results, Misses Expectations By $0.60 EPS

Key Points

• Dave & Buster's Entertainment reported a quarterly EPS of $0.40, missing analysts' estimates of $0.90 by $0.50.
• Despite the earnings miss, shares increased by 2.3% during midday trading, reaching a price of $24.19.
• Institutional investors currently own 91.45% of the company's stock, reflecting strong interest from hedge funds and other institutions.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) issued its quarterly earnings data on Monday. The restaurant operator reported $0.32 EPS for the quarter, missing the consensus estimate of $0.92 by ($0.60), RTT News reports. Dave & Buster's Entertainment had a net margin of 0.46% and a return on equity of 29.24%. The business had revenue of $557.40 million for the quarter, compared to analysts' expectations of $565.43 million. During the same quarter in the prior year, the company posted $0.99 EPS. The business's revenue for the quarter was up .1% on a year-over-year basis.

Dave & Buster's Entertainment Price Performance

PLAY traded down $0.78 during trading on Friday, hitting $19.61. The company's stock had a trading volume of 2,781,460 shares, compared to its average volume of 1,583,784. The company has a current ratio of 0.33, a quick ratio of 0.17 and a debt-to-equity ratio of 9.32. Dave & Buster's Entertainment has a twelve month low of $15.08 and a twelve month high of $43.73. The business's fifty day simple moving average is $26.23 and its 200 day simple moving average is $23.98. The firm has a market capitalization of $679.88 million, a price-to-earnings ratio of 57.68 and a beta of 2.04.

Insider Buying and Selling

In other Dave & Buster's Entertainment news, CEO Tarun Lal acquired 8,060 shares of the company's stock in a transaction on Tuesday, July 22nd. The shares were bought at an average cost of $31.26 per share, with a total value of $251,955.60. Following the completion of the acquisition, the chief executive officer owned 8,060 shares in the company, valued at approximately $251,955.60. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 2.02% of the company's stock.

Institutional Investors Weigh In On Dave & Buster's Entertainment

Several institutional investors have recently bought and sold shares of PLAY. AQR Capital Management LLC acquired a new stake in Dave & Buster's Entertainment in the 1st quarter worth about $430,000. Creative Planning purchased a new stake in shares of Dave & Buster's Entertainment during the 2nd quarter valued at approximately $311,000. Marshall Wace LLP acquired a new stake in Dave & Buster's Entertainment in the 2nd quarter valued at approximately $243,000. Cerity Partners LLC increased its holdings in Dave & Buster's Entertainment by 13.2% in the 2nd quarter. Cerity Partners LLC now owns 22,654 shares of the restaurant operator's stock valued at $681,000 after purchasing an additional 2,644 shares during the last quarter. Finally, Caption Management LLC grew its stake in shares of Dave & Buster's Entertainment by 624.7% in the second quarter. Caption Management LLC now owns 14,153 shares of the restaurant operator's stock worth $426,000 after acquiring an additional 12,200 shares in the last quarter. 91.45% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

PLAY has been the subject of a number of research analyst reports. UBS Group reduced their target price on Dave & Buster's Entertainment from $29.00 to $25.00 and set a "neutral" rating for the company in a research note on Tuesday. Zacks Research lowered Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a research note on Monday. BMO Capital Markets raised their target price on 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. Loop Capital increased their price target on Dave & Buster's Entertainment from $35.00 to $46.00 and gave the stock a "buy" rating in a research report on Wednesday, June 11th. Finally, Piper Sandler cut their price target on Dave & Buster's Entertainment from $30.00 to $26.00 and set a "neutral" rating on the stock in a research report on Tuesday. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $31.33.

About Dave & Buster's Entertainment

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.