Dave & Buster's Entertainment (NASDAQ:PLAY) Share Price Breaks Above Fifty Day Moving Average - Time to Sell?

Key Points

• PLAY shares rose above their 50-day moving average, reaching $8.19 and last trading at $8.13 versus the $7.75 average; however, the stock remained below its 200-day average of $11.70.
• Analyst sentiment was mixed but leaned cautious: the consensus rating was “Hold” with an average price target of $17.33, while Zacks downgraded the stock to “strong sell” and UBS cut its target to $9.
• The company reported a quarterly loss of $0.27 per share, missing estimates by $0.46, while revenue fell 2.4% year over year; insiders nevertheless bought shares, including purchases by the CFO and a director.

Shares of Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY - Get Free Report) passed above its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $7.75 and traded as high as $8.19. Dave & Buster's Entertainment shares last traded at $8.13, with a volume of 1,407,365 shares changing hands.

Analyst Upgrades and Downgrades

PLAY has been the subject of a number of research reports. UBS Group reduced their target price on shares of Dave & Buster's Entertainment from $12.00 to $9.00 and set a "neutral" rating for the company in a research report on Tuesday, September 15th. Zacks Research lowered Dave & Buster's Entertainment from a "hold" rating to a "strong sell" rating in a report on Monday, September 28th. BMO Capital Markets decreased their target price on Dave & Buster's Entertainment from $22.00 to $13.00 and set an "outperform" rating for the company in a research report on Tuesday, September 15th. Weiss Ratings restated a "sell (d)" rating on shares of Dave & Buster's Entertainment in a research note on Thursday, October 15th. Finally, Citigroup reaffirmed a "market perform" rating on shares of Dave & Buster's Entertainment in a research report on Tuesday, September 15th. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $17.33.

Dave & Buster's Entertainment Price Performance

The stock has a market cap of $283.18 million, a PE ratio of -3.16 and a beta of 1.92. The company has a debt-to-equity ratio of 17.07, a current ratio of 0.30 and a quick ratio of 0.21. The firm's 50 day moving average price is $7.75 and its two-hundred day moving average price is $11.70.

Dave & Buster's Entertainment (NASDAQ:PLAY - Get Free Report) last announced its quarterly earnings results on Monday, September 14th. The restaurant operator reported ($0.27) EPS for the quarter, missing analysts' consensus estimates of $0.19 by ($0.46). The business had revenue of $544.10 million for the quarter, compared to analysts' expectations of $556.83 million. Dave & Buster's Entertainment had a negative net margin of 4.26% and a negative return on equity of 51.87%. The business's quarterly revenue was down 2.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.32 earnings per share. On average, research analysts expect that Dave & Buster's Entertainment, Inc. will post -1.58 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Cory Hatton acquired 4,000 shares of the firm's stock in a transaction that occurred on Monday, September 28th. The shares were bought at an average cost of $6.50 per share, for a total transaction of $26,000.00. Following the purchase, the chief financial officer owned 104,475 shares in the company, valued at $679,087.50. This trade represents a 3.98% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Nathaniel Lipman acquired 12,000 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The shares were bought at an average cost of $6.78 per share, for a total transaction of $81,360.00. Following the acquisition, the director directly owned 30,715 shares in the company, valued at $208,247.70. This represents a 64.12% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 1.73% of the stock is owned by company insiders.

Institutional Investors Weigh In On Dave & Buster's Entertainment

Several hedge funds and other institutional investors have recently modified their holdings of PLAY. Tidal Investments LLC bought a new stake in Dave & Buster's Entertainment during the 2nd quarter worth approximately $182,000. Engineers Gate Manager LP lifted its stake in Dave & Buster's Entertainment by 200.7% in the 2nd quarter. Engineers Gate Manager LP now owns 537,254 shares of the restaurant operator's stock worth $6,125,000 after purchasing an additional 358,588 shares in the last quarter. Squarepoint Ops LLC lifted its stake in Dave & Buster's Entertainment by 289.7% in the 2nd quarter. Squarepoint Ops LLC now owns 131,168 shares of the restaurant operator's stock worth $1,495,000 after purchasing an additional 97,507 shares in the last quarter. Headlands Technologies LLC bought a new position in Dave & Buster's Entertainment in the 2nd quarter valued at $141,000. Finally, Hsbc Holdings PLC bought a new position in Dave & Buster's Entertainment in the 2nd quarter valued at $353,000. 91.45% of the stock is currently owned by institutional investors.

About Dave & Buster's Entertainment

Dave & Buster's Entertainment, Inc operates entertainment and dining venues under the Dave & Buster's and Main Event brands. Its locations combine arcade games, prize redemption, sports viewing and other interactive attractions with full-service restaurants and bars.

The company's venues offer a range of video, arcade and skill-based games, as well as group entertainment options for parties, corporate events and other gatherings. Food and beverage offerings typically include American-style menu items, alcoholic and nonalcoholic drinks, and event packages.

Dave & Buster's was founded in 1982, when James “Buster” Corley and David Corriveau opened the first location in Dallas, Texas.

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