Lucky Strike Entertainment (NYSE:LUCK) Shares Down 7.6% - Should You Sell?

Key Points

• Lucky Strike Entertainment shares fell 7.6% to $4.04 on significantly below-average trading volume, while the stock remains well below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans neutral: the stock has an average “Hold” rating and an $8.17 average price target, despite several Buy ratings and one recent Sell reiteration.
• The company missed quarterly earnings and revenue expectations, posting a $0.20 loss per share, but offers a 6.0% dividend yield. Insiders have recently purchased shares, and insiders collectively own 84.2% of the company.

Shares of Lucky Strike Entertainment (NYSE:LUCK - Get Free Report) traded down 7.6% on Wednesday. The company traded as low as $4.07 and last traded at $4.04. 25,505 shares traded hands during trading, a decline of 80% from the average daily volume of 125,077 shares. The stock had previously closed at $4.37.

Wall Street Analyst Weigh In

LUCK has been the subject of several analyst reports. Weiss Ratings reiterated a "sell (d)" rating on shares of Lucky Strike Entertainment in a research note on Friday, July 31st. Jefferies Financial Group set a $10.00 price objective on Lucky Strike Entertainment in a research report on Thursday, August 27th. Truist Financial decreased their price target on shares of Lucky Strike Entertainment from $9.00 to $8.00 and set a "buy" rating for the company in a research report on Friday, October 23rd. Stifel Nicolaus dropped their price objective on Lucky Strike Entertainment from $9.00 to $8.00 and set a "buy" rating on the stock in a report on Friday, August 28th. Finally, Zacks Research upgraded shares of Lucky Strike Entertainment from a "strong sell" rating to a "hold" rating in a research report on Monday. Four research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $8.17.

Lucky Strike Entertainment Price Performance

The stock has a market cap of $549.14 million, a PE ratio of -11.84 and a beta of 0.66. The stock has a 50-day simple moving average of $5.54 and a 200-day simple moving average of $7.35.

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

Lucky Strike Entertainment Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 22nd. Investors of record on Tuesday, September 8th were given a dividend of $0.06 per share. The ex-dividend date of this dividend was Tuesday, September 8th. This represents a $0.24 annualized dividend and a yield of 6.0%. Lucky Strike Entertainment's payout ratio is -70.59%.

Insiders Place Their Bets

In other Lucky Strike Entertainment news, Director Sandeep Mathrani acquired 9,350 shares of the stock in a transaction on Friday, August 28th. The stock was purchased at an average price of $6.41 per share, for a total transaction of $59,933.50. Following the purchase, the director directly owned 9,350 shares in the company, valued at $59,933.50. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Thomas F. Shannon bought 30,000 shares of the business's stock in a transaction on Wednesday, September 9th. The stock was acquired at an average cost of $5.86 per share, for a total transaction of $175,800.00. Following the completion of the transaction, the chief executive officer owned 3,144,000 shares in the company, valued at $18,423,840. This represents a 0.96% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 43,537 shares of company stock worth $261,064. Corporate insiders own 84.20% of the company's stock.

Institutional Trading of Lucky Strike Entertainment

A number of hedge funds have recently made changes to their positions in the stock. Squarepoint Ops LLC grew its holdings in Lucky Strike Entertainment by 69.8% during the 2nd quarter. Squarepoint Ops LLC now owns 22,158 shares of the company's stock worth $166,000 after acquiring an additional 9,112 shares in the last quarter. Great Lakes Advisors LLC bought a new stake in Lucky Strike Entertainment in the second quarter valued at about $1,361,000. Finally, Rice Hall James & Associates LLC increased its holdings in 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 buying an additional 166,104 shares during the last quarter. Institutional investors and hedge funds own 68.11% of the company's stock.

About Lucky Strike Entertainment

Lucky Strike Entertainment Corp. is an operator of location-based entertainment venues centered on bowling. The company provides recreational and social experiences through bowling lanes, arcade games, food and beverage offerings, and spaces for parties, corporate events and other group gatherings.

The company operates venues under brands that include Lucky Strike, Bowlero and AMF, serving customers across the United States and Canada. Its locations range from upscale entertainment venues to traditional bowling centers, with offerings designed for families, casual visitors, league bowlers and private-event guests.

Lucky Strike Entertainment was previously known as Bowlero Corp.

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