Dave & Buster's Entertainment (NASDAQ:PLAY) Trading 6.3% Higher - Should You Buy?

Key Points

• Dave & Buster's Entertainment stock rose by 6.3% to $18.85, despite a trading volume that fell 9% from its average.
• Analysts have downgraded the stock's ratings, with Zacks Research labeling it a "strong sell" and others adjusting price targets significantly downward.
• The company reported a significant earnings miss in its latest quarterly results, posting $0.32 EPS against expectations of $0.92.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Get Free Report) was up 6.3% during mid-day trading on Tuesday . The stock traded as high as $18.73 and last traded at $18.85. Approximately 1,198,263 shares were traded during trading, a decline of 9% from the average daily volume of 1,316,150 shares. The stock had previously closed at $17.74.

Wall Street Analysts Forecast Growth

PLAY has been the topic of several analyst reports. Zacks Research downgraded shares of Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a research report on Monday, September 15th. UBS Group lowered their target price on Dave & Buster's Entertainment from $29.00 to $25.00 and set a "neutral" rating on the stock in a research note on Tuesday, September 16th. Piper Sandler reduced their price target on shares of Dave & Buster's Entertainment from $30.00 to $26.00 and set a "neutral" rating for the company in a research report on Tuesday, September 16th. Truist Financial lowered their price objective on shares of Dave & Buster's Entertainment from $27.00 to $22.00 and set a "hold" rating on the stock in a research report on Tuesday, September 16th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Dave & Buster's Entertainment in a research note on Wednesday, October 8th. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $31.33.

Dave & Buster's Entertainment Stock Performance

The company has a debt-to-equity ratio of 9.32, a quick ratio of 0.22 and a current ratio of 0.33. The firm has a 50 day moving average price of $21.65 and a 200-day moving average price of $23.97. The company has a market cap of $649.37 million, a P/E ratio of 55.64 and a beta of 1.97.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last issued its quarterly earnings data on Monday, September 15th. The restaurant operator reported $0.32 earnings per share 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 firm had revenue of $557.40 million during the quarter, compared to analyst estimates of $565.43 million. During the same quarter in the previous year, the firm posted $0.99 earnings per share. Dave & Buster's Entertainment's quarterly revenue was up .1% compared to the same quarter last year. On average, research analysts predict that Dave & Buster's Entertainment, Inc. will post 2.52 EPS for the current year.

Hedge Funds Weigh In On Dave & Buster's Entertainment

Large investors have recently made changes to their positions in the business. Signaturefd LLC grew 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 valued at $75,000 after buying an additional 3,997 shares during the last quarter. Invesco Ltd. raised its stake in Dave & Buster's Entertainment by 16.7% during the 1st quarter. Invesco Ltd. now owns 243,849 shares of the restaurant operator's stock valued at $4,284,000 after purchasing an additional 34,935 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Dave & Buster's Entertainment by 9.5% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 516,835 shares of the restaurant operator's stock valued at $9,081,000 after purchasing an additional 44,911 shares during the period. Jennison Associates LLC acquired a new stake in Dave & Buster's Entertainment in the 1st quarter worth $555,000. Finally, Aigen Investment Management LP bought a new position in shares of Dave & Buster's Entertainment during the 1st quarter worth about $280,000. Institutional investors and hedge funds 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.

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