Dave & Buster’s Entertainment (NASDAQ:PLAY) Lowered to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Dave & Buster’s Entertainment (NASDAQ:PLAYGet Rating) from a strong-buy rating to a hold rating in a report released on Friday morning, Zacks.com reports. They currently have $46.00 price objective on the restaurant operator’s stock.

According to Zacks, “Shares of Dave & Buster's have outperformed the industry so far this year. The company continues to perform well on the back of the unique customizable experience that it offers across its four platforms, Eat, Drink, Play and Watch. This along with emphasis on higher mix of amusements and a leaner operating model bode well. Going forward, the company expects the momentum to continue on the back of its strategic initiatives that include a new menu, optimized marketing, technology investments and expansion of entertainment options. Earnings estimates for fiscal 2023 have moved up in the past 30 days. However, coronavirus-related woes persist. Although a majority of the stores have re-opened, traffic is still well below the pre-outbreak level. Also, the rise in wages and commodity inflation are concerning.”

Other analysts also recently issued reports about the company. Raymond James lifted their price target on Dave & Buster’s Entertainment from $55.00 to $60.00 and gave the stock a strong-buy rating in a report on Wednesday, March 30th. BMO Capital Markets lifted their price target on Dave & Buster’s Entertainment from $58.00 to $62.00 and gave the stock an outperform rating in a report on Wednesday, March 30th. Truist Financial lifted their price target on Dave & Buster’s Entertainment from $60.00 to $63.00 and gave the stock a buy rating in a report on Wednesday, March 30th. StockNews.com began coverage on Dave & Buster’s Entertainment in a report on Thursday, March 31st. They set a hold rating for the company. Finally, Stifel Nicolaus boosted their target price on Dave & Buster’s Entertainment from $40.00 to $45.00 in a report on Tuesday, March 29th. One investment analyst has rated the stock with a sell rating, four have issued a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of Buy and an average target price of $52.18.

NASDAQ:PLAY traded up $0.76 during midday trading on Friday, reaching $44.84. The company had a trading volume of 1,294,952 shares, compared to its average volume of 1,064,397. The firm has a market capitalization of $2.18 billion, a price-to-earnings ratio of 20.38, a PEG ratio of 0.95 and a beta of 1.81. The stock’s fifty day simple moving average is $44.29 and its 200-day simple moving average is $39.85. Dave & Buster’s Entertainment has a 12-month low of $29.83 and a 12-month high of $52.54. The company has a current ratio of 0.47, a quick ratio of 0.34 and a debt-to-equity ratio of 1.57.

Dave & Buster’s Entertainment (NASDAQ:PLAYGet Rating) last released its earnings results on Monday, March 28th. The restaurant operator reported $0.52 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.61 by ($0.09). The company had revenue of $343.10 million during the quarter, compared to analysts’ expectations of $364.46 million. Dave & Buster’s Entertainment had a net margin of 8.33% and a return on equity of 46.70%. The company’s revenue for the quarter was up 193.7% on a year-over-year basis. During the same quarter last year, the business posted ($1.19) earnings per share. As a group, sell-side analysts expect that Dave & Buster’s Entertainment will post 3.34 EPS for the current year.

In other Dave & Buster’s Entertainment news, VP Michael Joseph Metzinger sold 2,226 shares of the business’s stock in a transaction that occurred on Wednesday, March 30th. The stock was sold at an average price of $50.00, for a total transaction of $111,300.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Kevin M. Sheehan bought 10,000 shares of the company’s stock in a transaction on Friday, April 8th. The shares were acquired at an average price of $40.58 per share, for a total transaction of $405,800.00. Following the transaction, the chief executive officer now directly owns 163,798 shares in the company, valued at approximately $6,646,922.84. The disclosure for this purchase can be found here. Insiders own 3.57% of the company’s stock.

Several large investors have recently made changes to their positions in PLAY. Whittier Trust Co. boosted its stake in shares of Dave & Buster’s Entertainment by 93.2% during the 4th quarter. Whittier Trust Co. now owns 738 shares of the restaurant operator’s stock worth $28,000 after acquiring an additional 356 shares in the last quarter. Exane Derivatives purchased a new stake in shares of Dave & Buster’s Entertainment during the 4th quarter worth approximately $40,000. Nisa Investment Advisors LLC boosted its stake in shares of Dave & Buster’s Entertainment by 68.9% during the 1st quarter. Nisa Investment Advisors LLC now owns 1,030 shares of the restaurant operator’s stock worth $51,000 after acquiring an additional 420 shares in the last quarter. Focused Wealth Management Inc purchased a new stake in shares of Dave & Buster’s Entertainment during the 1st quarter worth approximately $69,000. Finally, Gladius Capital Management LP purchased a new stake in shares of Dave & Buster’s Entertainment during the 4th quarter worth approximately $74,000. 97.24% of the stock is currently owned by institutional investors and hedge funds.

About Dave & Buster’s Entertainment (Get Rating)

Dave & Buster's Entertainment, Inc owns and operates entertainment and dining venues for adults and families. Its venues offer a menu of entrees 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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