Dave & Buster's Entertainment (NASDAQ:PLAY) Stock Price Up 6.4% - Still a Buy?

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) was up 6.4% 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.

Analysts Set New Price Targets

Several research firms have weighed in on PLAY. Truist Financial dropped their price target 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. 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. UBS Group dropped 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 report on Tuesday. Zacks Research lowered Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a research report on Monday. Finally, BMO Capital Markets lifted their target price on 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. Two equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $31.33.

Dave & Buster's Entertainment Price Performance

The firm has a market capitalization of $680.88 million, a price-to-earnings ratio of 57.87 and a beta of 2.04. The stock's 50 day moving average price is $26.49 and its two-hundred day moving average price is $23.97. The company has a quick ratio of 0.17, a current ratio of 0.33 and a debt-to-equity ratio of 9.32.

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 (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 during the quarter, compared to the consensus estimate of $565.43 million. During the same quarter in the prior year, the company posted $0.99 earnings per share. The company's revenue for the quarter was up .1% on a year-over-year basis. Analysts anticipate that Dave & Buster's Entertainment, Inc. will post 2.52 EPS for the current fiscal year.

Insider Activity at Dave & Buster's Entertainment

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

Institutional Trading of Dave & Buster's Entertainment

Several hedge funds and other institutional investors have recently modified their holdings of PLAY. Farther Finance Advisors LLC bought a new stake in shares of Dave & Buster's Entertainment in the second quarter valued at approximately $37,000. US Bancorp DE increased its holdings in 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 purchasing an additional 1,273 shares during the period. Signaturefd LLC increased its holdings in Dave & Buster's Entertainment by 1,427.5% in the first 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 during the period. GAMMA Investing LLC grew its holdings in 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 worth $77,000 after acquiring an additional 4,253 shares during the period. Finally, Tower Research Capital LLC TRC grew its holdings in 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 worth $152,000 after acquiring an additional 3,772 shares during the period. Institutional investors and hedge funds own 91.45% of the company's stock.

Dave & Buster's Entertainment Company Profile

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.