Dave & Buster's Entertainment (NASDAQ:PLAY) Shares Gap Down - Should You Sell?

Key Points

• Dave & Buster's Entertainment shares gapped down from $25.13 to $24.44 before trading at $24.75, with recent analyst ratings generally maintaining a "Hold" or "Neutral" outlook and an average price target of $33.50.
• The company reported quarterly earnings of $0.76 per share, missing estimates by $0.20, and experienced a year-over-year revenue decline of 3.5% to $567.70 million.
• Insider trading activity includes a significant sale by SVP John Mulleady and a purchase by CEO Tarun Lal, which reflects mixed sentiment among company executives regarding the stock's future performance.

Shares of Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $25.13, but opened at $24.44. Dave & Buster's Entertainment shares last traded at $24.75, with a volume of 90,490 shares trading hands.

Analyst Ratings Changes

PLAY has been the subject of a number of research analyst reports. UBS Group lifted their target price on Dave & Buster's Entertainment from $18.00 to $29.00 and gave the stock a "neutral" rating in a report on Wednesday, June 11th. Loop Capital increased their price objective 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. Truist Financial reduced their price objective on Dave & Buster's Entertainment from $29.00 to $27.00 and set a "hold" rating for the company in a report on Wednesday, August 27th. BMO Capital Markets upped their target price on shares of Dave & Buster's Entertainment from $30.00 to $35.00 and gave the company an "outperform" rating in a research note on Wednesday, June 11th. Finally, Piper Sandler raised their price target on shares of Dave & Buster's Entertainment from $22.00 to $30.00 and gave the company a "neutral" rating in a report on Wednesday, June 11th. Two equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Dave & Buster's Entertainment currently has an average rating of "Hold" and an average price target of $33.50.

Dave & Buster's Entertainment Stock Performance

The business's fifty day moving average is $28.33 and its 200-day moving average is $23.99. The company has a quick ratio of 0.17, a current ratio of 0.26 and a debt-to-equity ratio of 10.69. The company has a market cap of $820.58 million, a PE ratio of 23.50 and a beta of 2.04.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last released its quarterly earnings results on Tuesday, June 10th. The restaurant operator reported $0.76 earnings per share for the quarter, missing the consensus estimate of $0.96 by ($0.20). The business had revenue of $567.70 million during the quarter, compared to the consensus estimate of $572.12 million. Dave & Buster's Entertainment had a return on equity of 40.67% and a net margin of 1.83%.The firm's revenue was down 3.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.99 earnings per share. As a group, research analysts predict that Dave & Buster's Entertainment, Inc. will post 2.52 EPS for the current fiscal year.

Insider Buying and Selling at Dave & Buster's Entertainment

In other Dave & Buster's Entertainment news, SVP John Mulleady sold 5,931 shares of the business's stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $32.79, for a total transaction of $194,477.49. Following the completion of the sale, the senior vice president owned 42,550 shares of the company's stock, valued at approximately $1,395,214.50. The trade was a 12.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, 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 transaction, the chief executive officer owned 8,060 shares in the company, valued at approximately $251,955.60. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. 2.02% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Dave & Buster's Entertainment

A number of institutional investors have recently bought and sold shares of the business. US Bancorp DE lifted its position in shares of Dave & Buster's Entertainment by 442.0% in the first quarter. US Bancorp DE now owns 1,561 shares of the restaurant operator's stock valued at $27,000 after acquiring an additional 1,273 shares in the last quarter. Farther Finance Advisors LLC bought a new stake in Dave & Buster's Entertainment during the 2nd quarter valued at approximately $37,000. Signaturefd LLC lifted its holdings in Dave & Buster's Entertainment by 1,427.5% in the 1st quarter. Signaturefd LLC now owns 4,277 shares of the restaurant operator's stock worth $75,000 after purchasing an additional 3,997 shares in the last quarter. GAMMA Investing LLC lifted its holdings in Dave & Buster's Entertainment by 3,974.8% in the 1st quarter. GAMMA Investing LLC now owns 4,360 shares of the restaurant operator's stock worth $77,000 after purchasing an additional 4,253 shares in the last quarter. Finally, Federated Hermes Inc. bought a new position in Dave & Buster's Entertainment in the 1st quarter worth approximately $139,000. Hedge funds and other institutional investors own 91.45% of the company's stock.

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.