Zacks Investment Research lowered shares of Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) from a buy rating to a hold rating in a report published on Monday.

According to Zacks, “Dave & Buster's shares have outpaced the industry over the past year. The company’s unique business model with increased dependence on gaming sets it apart and we expect the company’s entertainment business to carry the growth story forward. Consistent efforts to build sales and improve margins through various initiatives have also been key growth drivers. In this regard, continual opening of stores, menu innovation, launch of games, and the Fun American New Gourmet and beverage options are expected to continue boosting its top and bottom lines. In fact, the first quarter of fiscal 2017 marked the tenth successive earnings beat for the company. Estimates too have been going slightly up ahead of its fiscal second quarter earnings release. However, rising labor costs and a non-franchised business model might hurt profits, while a soft consumer spending environment in the U.S. restaurant space could impact comps.”

PLAY has been the topic of several other reports. Maxim Group reaffirmed a buy rating and issued a $78.00 price target on shares of Dave & Buster’s Entertainment in a report on Thursday, August 24th. BidaskClub cut shares of Dave & Buster’s Entertainment from a hold rating to a sell rating in a report on Tuesday, August 1st. Raymond James Financial, Inc. reaffirmed an outperform rating and issued a $77.00 price target on shares of Dave & Buster’s Entertainment in a report on Monday, July 24th. Jefferies Group LLC reaffirmed a buy rating and issued a $80.00 price target on shares of Dave & Buster’s Entertainment in a report on Friday, July 14th. Finally, Wells Fargo & Company reaffirmed an outperform rating and issued a $78.00 price target (up from $75.00) on shares of Dave & Buster’s Entertainment in a report on Friday, June 9th. One research analyst has rated the stock with a sell rating and eleven have issued a buy rating to the company’s stock. The company presently has a consensus rating of Buy and a consensus target price of $76.00.

Shares of Dave & Buster’s Entertainment (PLAY) opened at 58.46 on Monday. Dave & Buster’s Entertainment has a 52 week low of $37.60 and a 52 week high of $73.48. The firm has a market capitalization of $2.42 billion, a price-to-earnings ratio of 24.74 and a beta of 0.64. The company’s 50-day moving average is $62.10 and its 200 day moving average is $62.92.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last announced its earnings results on Thursday, June 8th. The restaurant operator reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.81 by $0.17. The business had revenue of $304.15 million during the quarter, compared to the consensus estimate of $299.77 million. Dave & Buster’s Entertainment had a net margin of 9.78% and a return on equity of 22.71%. The business’s quarterly revenue was up 16.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.72 earnings per share. Analysts anticipate that Dave & Buster’s Entertainment will post $2.63 EPS for the current fiscal year.

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Dave & Buster’s Entertainment announced that its board has initiated a stock repurchase plan on Tuesday, June 6th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the restaurant operator to purchase up to 3.4% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

In other Dave & Buster’s Entertainment news, SVP Jay L. Tobin sold 19,186 shares of the stock in a transaction on Thursday, June 8th. The shares were sold at an average price of $71.70, for a total transaction of $1,375,636.20. Following the sale, the senior vice president now directly owns 56,071 shares of the company’s stock, valued at $4,020,290.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Stephen M. King sold 75,000 shares of the stock in a transaction on Thursday, June 8th. The stock was sold at an average price of $71.69, for a total transaction of $5,376,750.00. Following the sale, the chief executive officer now directly owns 37,501 shares in the company, valued at $2,688,446.69. The disclosure for this sale can be found here. Insiders sold 144,186 shares of company stock worth $10,085,186 over the last ninety days. 5.60% of the stock is currently owned by corporate insiders.

Hedge funds have recently modified their holdings of the company. Tower Research Capital LLC TRC boosted its stake in shares of Dave & Buster’s Entertainment by 335.9% in the first quarter. Tower Research Capital LLC TRC now owns 1,905 shares of the restaurant operator’s stock worth $116,000 after buying an additional 1,468 shares during the period. Tyers Asset Management LLC boosted its stake in shares of Dave & Buster’s Entertainment by 9.2% in the first quarter. Tyers Asset Management LLC now owns 1,988 shares of the restaurant operator’s stock worth $122,000 after buying an additional 168 shares during the period. Strs Ohio boosted its stake in shares of Dave & Buster’s Entertainment by 76.9% in the first quarter. Strs Ohio now owns 2,300 shares of the restaurant operator’s stock worth $140,000 after buying an additional 1,000 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in shares of Dave & Buster’s Entertainment by 147.6% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,157 shares of the restaurant operator’s stock worth $143,000 after buying an additional 1,286 shares during the period. Finally, Flinton Capital Management LLC boosted its stake in shares of Dave & Buster’s Entertainment by 9.2% in the first quarter. Flinton Capital Management LLC now owns 2,414 shares of the restaurant operator’s stock worth $148,000 after buying an additional 204 shares during the period.

Dave & Buster’s Entertainment Company Profile

Dave & Buster’s Entertainment, Inc owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of ‘Fun American New Gourmet’ entrées 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.

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Analyst Recommendations for Dave & Buster`s Entertainment (NASDAQ:PLAY)

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