Incline Global Management LLC Cuts Stock Position in Dave & Buster’s Entertainment, Inc. $PLAY

Incline Global Management LLC lessened its position in Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) by 91.0% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 76,548 shares of the restaurant operator’s stock after selling 769,671 shares during the quarter. Dave & Buster’s Entertainment makes up 0.4% of Incline Global Management LLC’s investment portfolio, making the stock its 27th largest holding. Incline Global Management LLC’s holdings in Dave & Buster’s Entertainment were worth $1,241,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Ruffer LLP purchased a new stake in shares of Dave & Buster’s Entertainment in the 4th quarter valued at $2,111,000. ING Groep NV purchased a new stake in shares of Dave & Buster’s Entertainment in the 4th quarter valued at $7,311,000. First Eagle Investment Management LLC purchased a new stake in shares of Dave & Buster’s Entertainment in the 3rd quarter valued at $1,834,000. SG Americas Securities LLC raised its holdings in shares of Dave & Buster’s Entertainment by 232.3% in the 4th quarter. SG Americas Securities LLC now owns 634,148 shares of the restaurant operator’s stock valued at $10,280,000 after buying an additional 443,308 shares during the period. Finally, Clearline Capital LP raised its holdings in shares of Dave & Buster’s Entertainment by 20.4% in the 3rd quarter. Clearline Capital LP now owns 1,619,964 shares of the restaurant operator’s stock valued at $29,419,000 after buying an additional 274,541 shares during the period. Hedge funds and other institutional investors own 91.45% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. Piper Sandler cut their price objective 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. Zacks Research cut Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a research note on Thursday, April 2nd. UBS Group lowered their target price on Dave & Buster’s Entertainment from $13.00 to $12.00 and set a “neutral” rating for the company in a research note on Tuesday. BMO Capital Markets lowered their target price on Dave & Buster’s Entertainment from $24.00 to $22.00 and set an “outperform” rating for the company in a research note on Tuesday. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Dave & Buster’s Entertainment in a research note on Monday, April 20th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $19.33.

Trending Headlines about Dave & Buster’s Entertainment

Here are the key news stories impacting Dave & Buster’s Entertainment this week:

• Positive Sentiment: Some articles point to potential turnaround drivers, including new games, stronger value messaging, remodel gains, improved food sales, and tighter cash flow discipline that could help recovery later in the year. Article Title
• Positive Sentiment: One report says internal metrics are showing traction in remodeled stores and that institutional investors are accumulating shares, suggesting some market participants still see recovery potential. Article Title
• Positive Sentiment: Analysts note the stock’s steep valuation discount may appeal to bargain hunters if management can deliver a sustained improvement in traffic and margins. Article Title
• Neutral Sentiment: Management is leaning on a “back-to-basics” turnaround plan focused on restoring traffic, improving entertainment sales, and proving cash flow can support a rebound. Article Title
• Negative Sentiment: The main catalyst for the selloff is the Q1 earnings report, where Dave & Buster’s missed expectations on both profits and revenue, while comparable sales fell 5.4% and consumer demand softened. Article Title
• Negative Sentiment: Several reports highlight higher operating costs, weak comps, and estimate cuts from analysts, all of which are making investors question how quickly PLAY can recover. Article Title
• Negative Sentiment: Commentary from Benchmark and others says the disappointing quarter shows the recovery remains elusive, reinforcing the bearish tone around the stock. Article Title

Insider Buying and Selling

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

Dave & Buster’s Entertainment Stock Down 3.1%

PLAY opened at $11.19 on Thursday. The business has a 50 day moving average price of $11.97 and a two-hundred day moving average price of $14.76. The company has a quick ratio of 0.19, a current ratio of 0.29 and a debt-to-equity ratio of 15.01. The company has a market cap of $389.30 million, a PE ratio of -5.92 and a beta of 1.81. Dave & Buster’s Entertainment, Inc. has a 52 week low of $9.61 and a 52 week high of $35.53.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last posted its quarterly earnings data on Monday, June 15th. The restaurant operator reported $0.22 EPS for the quarter, missing the consensus estimate of $0.60 by ($0.38). The company had revenue of $559.20 million for the quarter, compared to analysts’ expectations of $580.60 million. Dave & Buster’s Entertainment had a negative net margin of 3.09% and a negative return on equity of 24.19%. The firm’s revenue was down 1.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.76 earnings per share. As a group, research analysts anticipate that Dave & Buster’s Entertainment, Inc. will post -0.77 EPS for the current year.

Dave & Buster’s Entertainment Company Profile

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.