Dave & Buster’s Entertainment (NASDAQ:PLAY) Releases Earnings Results, Misses Estimates By $0.38 EPS

Dave & Buster’s Entertainment (NASDAQ:PLAY) issued its earnings results on Monday. The restaurant operator reported $0.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.38), FiscalAI reports. The business had revenue of $559.20 million for the quarter, compared to analysts’ expectations of $580.60 million. Dave & Buster’s Entertainment had a negative return on equity of 7.93% and a negative net margin of 2.32%.

Dave & Buster’s Entertainment Stock Down 4.7%

NASDAQ:PLAY traded down $0.61 during mid-day trading on Monday, reaching $12.32. The stock had a trading volume of 4,288,217 shares, compared to its average volume of 1,514,894. The company has a market capitalization of $428.00 million, a price-to-earnings ratio of -8.62 and a beta of 1.81. Dave & Buster’s Entertainment has a 1-year low of $9.61 and a 1-year high of $35.53. The stock’s 50 day simple moving average is $12.01 and its two-hundred day simple moving average is $14.88. The company has a debt-to-equity ratio of 16.61, a current ratio of 0.29 and a quick ratio of 0.19.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on PLAY shares. Zacks Research cut Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a report on Thursday, April 2nd. Piper Sandler lowered their target price on Dave & Buster’s Entertainment from $22.00 to $14.00 and set a “neutral” rating on the stock in a report on Monday, April 6th. Benchmark reiterated a “buy” rating on shares of Dave & Buster’s Entertainment in a report on Thursday. Wall Street Zen cut Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a report on Monday, April 6th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Dave & Buster’s Entertainment in a report on Monday, April 20th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $21.83.

Insider Buying and Selling

In other Dave & Buster’s Entertainment news, SVP Steve Klohn sold 6,989 shares of Dave & Buster’s Entertainment stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $14.69, for a total value of $102,668.41. Following the completion of the transaction, the senior vice president directly owned 38,547 shares in the company, valued at $566,255.43. The trade was a 15.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 1.73% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Dave & Buster’s Entertainment

A number of hedge funds have recently made changes to their positions in PLAY. Nomura Holdings Inc. raised its holdings in shares of Dave & Buster’s Entertainment by 532.9% during the third quarter. Nomura Holdings Inc. now owns 2,411,191 shares of the restaurant operator’s stock valued at $43,787,000 after buying an additional 2,030,186 shares during the last quarter. Fund 1 Investments LLC bought a new stake in Dave & Buster’s Entertainment during the third quarter worth approximately $7,791,000. JPMorgan Chase & Co. raised its holdings in Dave & Buster’s Entertainment by 474.5% during the fourth quarter. JPMorgan Chase & Co. now owns 424,277 shares of the restaurant operator’s stock worth $6,878,000 after purchasing an additional 350,429 shares in the last quarter. CIBC Bancorp USA Inc. bought a new stake in Dave & Buster’s Entertainment during the third quarter worth approximately $6,118,000. Finally, Cibc World Markets Corp bought a new stake in Dave & Buster’s Entertainment during the fourth quarter worth approximately $5,443,000. Institutional investors own 91.45% of the company’s stock.

About Dave & Buster’s Entertainment

Dave & Buster’s Entertainment, Inc operates a chain of combined restaurant and entertainment venues designed to appeal to families, young adults and corporate groups. Each location features a full-service restaurant and bar alongside an arcade gaming area with ticket-based redemption, virtual reality experiences and skill-based games. Many venues also include multiple large-screen televisions and a sports bar atmosphere, catering to fans who wish to watch live sporting events in a social setting.

The company was founded in 1982 by David Corriveau and James “Buster” Corley, opening its first location in Dallas, Texas.