Dave & Buster's Entertainment (NASDAQ:PLAY) Trading Up 6.4% - Here's What Happened

Key Points

• Shares of Dave & Buster's Entertainment rose by 6.4% during trading, reaching $21.44, with trading volume up by 17% from the average.
• Analysts' ratings vary, with Zacks downgrading the stock to "strong sell," while Loop Capital raised its price target significantly to $46.00 with a "buy" rating.
• The company reported a revenue of $557.40 million for the last quarter but missed earnings expectations, posting $0.32 earnings per share compared to the consensus of $0.92.

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Get Free Report) shares were up 6.4% during trading on Wednesday . The stock traded as high as $21.34 and last traded at $21.44. Approximately 1,549,305 shares changed hands during mid-day trading, an increase of 17% from the average daily volume of 1,319,453 shares. The stock had previously closed at $20.14.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on PLAY shares. Zacks Research cut shares of Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a research report on Monday, September 15th. BMO Capital Markets lifted their price objective on shares of Dave & Buster's Entertainment from $30.00 to $35.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 11th. UBS Group decreased their price objective on shares of Dave & Buster's Entertainment from $29.00 to $25.00 and set a "neutral" rating for the company in a research note on Tuesday, September 16th. Piper Sandler reduced their price objective 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. Finally, Loop Capital upped their price objective on shares of Dave & Buster's Entertainment from $35.00 to $46.00 and gave the company a "buy" rating in a report on Wednesday, June 11th. Two equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $31.33.

Dave & Buster's Entertainment Stock Performance

The stock's 50-day moving average is $26.23 and its 200-day moving average is $24.04. The stock has a market cap of $679.88 million, a price-to-earnings ratio of 57.68 and a beta of 2.04. The company has a current ratio of 0.33, a quick ratio of 0.22 and a debt-to-equity ratio of 9.32.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last posted its quarterly earnings results on Monday, September 15th. The restaurant operator reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.92 by ($0.60). The firm had revenue of $557.40 million for the quarter, compared to analyst estimates of $565.43 million. Dave & Buster's Entertainment had a net margin of 0.46% and a return on equity of 29.24%. The business's revenue was up .1% on a year-over-year basis. During the same period in the prior year, the company posted $0.99 earnings per share. On average, analysts expect that Dave & Buster's Entertainment, Inc. will post 2.52 EPS for the current year.

Insider Transactions at Dave & Buster's Entertainment

In other news, CEO Tarun Lal bought 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 transaction, the chief executive officer directly owned 8,060 shares in the company, valued at approximately $251,955.60. This trade represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 2.02% of the company's stock.

Hedge Funds Weigh In On Dave & Buster's Entertainment

Hedge funds and other institutional investors have recently modified their holdings of the stock. Raymond James Financial Inc. increased its stake in shares of Dave & Buster's Entertainment by 0.5% in the 2nd quarter. Raymond James Financial Inc. now owns 121,847 shares of the restaurant operator's stock valued at $3,665,000 after buying an additional 637 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Dave & Buster's Entertainment by 4.1% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 18,407 shares of the restaurant operator's stock worth $537,000 after acquiring an additional 728 shares in the last quarter. Farther Finance Advisors LLC bought a new position in Dave & Buster's Entertainment during the second quarter worth about $37,000. US Bancorp DE lifted 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 acquiring an additional 1,273 shares in the last quarter. Finally, Ausdal Financial Partners Inc. lifted its holdings in shares of Dave & Buster's Entertainment by 9.0% in the second quarter. Ausdal Financial Partners Inc. now owns 25,220 shares of the restaurant operator's stock valued at $759,000 after purchasing an additional 2,078 shares in the last quarter. 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.