Dave & Buster's Entertainment (NASDAQ:PLAY) Shares Gap Down After Earnings Miss

Key Points

• Dave & Buster's Entertainment reported a significant quarterly earnings miss with earnings per share of $0.32 compared to the consensus estimate of $0.92, leading to a gap down in share price from $24.19 to $19.49.
• Several analysts downgraded their price targets for the stock, with Truist Financial lowering theirs from $29.00 to $27.00 and UBS reducing theirs to $25.00, while the consensus price target is now $32.83.
• The stock is heavily held by institutional investors, who own 91.45% of the company's shares, indicating strong institutional interest despite the recent downturn in stock performance.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Get Free Report) shares gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $24.19, but opened at $19.49. Dave & Buster's Entertainment shares last traded at $20.05, with a volume of 2,001,750 shares changing hands.

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 return on equity of 29.24% and a net margin of 0.46%.The business had revenue of $557.40 million for the quarter, compared to analyst estimates of $565.43 million. During the same period last year, the company posted $0.99 EPS. The firm's revenue for the quarter was up .1% compared to the same quarter last year.

Analysts Set New Price Targets

PLAY has been the topic of several research analyst reports. Piper Sandler reduced their price objective on Dave & Buster's Entertainment from $30.00 to $26.00 and set a "neutral" rating on the stock in a research note on Tuesday. Loop Capital raised their price target on Dave & Buster's Entertainment from $35.00 to $46.00 and gave the company a "buy" rating in a report on Wednesday, June 11th. BMO Capital Markets lifted their price target 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. UBS Group decreased 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. Finally, Truist Financial decreased 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. Two research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $31.33.

Insider Buying and Selling

In other news, CEO Tarun Lal bought 8,060 shares of Dave & Buster's Entertainment stock in a transaction that occurred on Tuesday, July 22nd. The stock was purchased at an average cost of $31.26 per share, with a total value of $251,955.60. Following the completion of the transaction, the chief executive officer directly owned 8,060 shares in the company, valued at $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 accessible through this hyperlink. 2.02% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Farther Finance Advisors LLC acquired a new position in Dave & Buster's Entertainment during the second quarter worth $37,000. US Bancorp DE boosted its holdings in Dave & Buster's Entertainment by 442.0% during the first quarter. US Bancorp DE now owns 1,561 shares of the restaurant operator's stock worth $27,000 after buying an additional 1,273 shares during the last quarter. Signaturefd LLC lifted its holdings in shares of Dave & Buster's Entertainment by 1,427.5% during the 1st quarter. Signaturefd LLC now owns 4,277 shares of the restaurant operator's stock valued at $75,000 after purchasing an additional 3,997 shares in the last quarter. GAMMA Investing LLC lifted its holdings in shares of Dave & Buster's Entertainment by 3,974.8% during the 1st quarter. GAMMA Investing LLC now owns 4,360 shares of the restaurant operator's stock valued at $77,000 after purchasing an additional 4,253 shares in the last quarter. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of 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. 91.45% of the stock is currently owned by institutional investors and hedge funds.

Dave & Buster's Entertainment Price Performance

The company has a current ratio of 0.33, a quick ratio of 0.17 and a debt-to-equity ratio of 9.32. The firm has a market cap of $679.88 million, a P/E ratio of 57.68 and a beta of 2.04. The company has a fifty day moving average price of $26.23 and a two-hundred day moving average price of $23.98.

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.