Lucky Strike Entertainment (NYSE:LUCK) Reaches New 1-Year Low - Should You Sell?

Key Points

• Lucky Strike Entertainment shares fell to a new 52-week low of $5.30, below their 50-day and 200-day moving averages. The stock has a market capitalization of approximately $726 million and a negative price-to-earnings ratio.
• Analyst sentiment is mixed, with four Buy, six Hold, and three Sell ratings; the consensus rating is Hold with an $8.39 price target. The company recently missed quarterly estimates, reporting a $0.20 per-share loss and revenue below expectations.
• Despite the stock’s decline, insiders purchased 43,150 shares worth nearly $259,000 over the past three months, while the company maintains a quarterly dividend of $0.06, implying a 4.5% annualized yield.

Lucky Strike Entertainment (NYSE:LUCK - Get Free Report)'s stock price hit a new 52-week low on Tuesday . The stock traded as low as $5.30 and last traded at $5.35, with a volume of 18072 shares traded. The stock had previously closed at $5.43.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on LUCK. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Lucky Strike Entertainment in a research note on Friday, July 31st. Roth Capital set a $6.50 price objective on shares of Lucky Strike Entertainment in a report on Friday, August 28th. Truist Financial set a $10.00 price objective on shares of Lucky Strike Entertainment in a research note on Thursday, August 27th. Citizens Jmp initiated coverage on shares of Lucky Strike Entertainment in a research report on Monday, June 29th. They set a "market perform" rating for the company. Finally, Citigroup started coverage on Lucky Strike Entertainment in a research note on Monday, June 29th. They issued a "market perform" rating on the stock. Four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, Lucky Strike Entertainment currently has an average rating of "Hold" and a consensus target price of $8.39.

Lucky Strike Entertainment Trading Down 1.9%

The firm's fifty day moving average price is $6.52 and its 200-day moving average price is $7.55. The company has a market cap of $726.09 million, a price-to-earnings ratio of -15.74 and a beta of 0.62.

Lucky Strike Entertainment (NYSE:LUCK - Get Free Report) last posted its earnings results on Thursday, August 27th. The company reported ($0.20) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.15). The business had revenue of $303.95 million during the quarter, compared to analysts' expectations of $311.30 million. As a group, research analysts anticipate that Lucky Strike Entertainment will post -0.02 EPS for the current year.

Lucky Strike Entertainment Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Tuesday, September 8th will be given a $0.06 dividend. The ex-dividend date is Tuesday, September 8th. This represents a $0.24 annualized dividend and a dividend yield of 4.5%. Lucky Strike Entertainment's payout ratio is currently -70.59%.

Insider Buying and Selling

In other Lucky Strike Entertainment news, CEO Thomas Shannon bought 30,000 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was acquired at an average cost of $5.86 per share, with a total value of $175,800.00. Following the purchase, the chief executive officer owned 3,144,000 shares in the company, valued at $18,423,840. This trade represents a 0.96% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Sandeep Mathrani bought 9,350 shares of the company's stock in a transaction on Friday, August 28th. The shares were bought at an average price of $6.41 per share, for a total transaction of $59,933.50. Following the completion of the acquisition, the director directly owned 9,350 shares in the company, valued at approximately $59,933.50. This trade represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have purchased 43,150 shares of company stock valued at $258,948. 84.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lucky Strike Entertainment

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Private Management Group Inc. raised its stake in shares of Lucky Strike Entertainment by 2.6% in the 4th quarter. Private Management Group Inc. now owns 1,911,134 shares of the company's stock valued at $16,187,000 after purchasing an additional 48,093 shares during the period. Rice Hall James & Associates LLC raised its holdings in shares of Lucky Strike Entertainment by 52.7% in the first quarter. Rice Hall James & Associates LLC now owns 481,189 shares of the company's stock valued at $4,003,000 after purchasing an additional 166,104 shares during the last quarter. Great Lakes Advisors LLC bought a new stake in shares of Lucky Strike Entertainment in the second quarter worth $1,361,000. Maven Securities LTD acquired a new position in Lucky Strike Entertainment during the fourth quarter worth $1,036,000. Finally, MYDA Advisors LLC bought a new position in Lucky Strike Entertainment in the fourth quarter valued at $424,000. 68.11% of the stock is owned by institutional investors and hedge funds.

About Lucky Strike Entertainment

Lucky Strike Entertainment Inc NYSE: LUCK is an operator of location-based entertainment venues centered on bowling. Its centers combine bowling with arcade games, food and beverages, and social entertainment, serving individual customers, families, corporate groups, parties, and organized leagues.

The company operates venues under brands that include Lucky Strike, Bowlero, and AMF. Offerings may include traditional bowling, enhanced bowling experiences, billiards, arcade attractions, event spaces, and hospitality services.

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