Bowlero (NYSE:BOWL) Shares Gap Down Following Weak Earnings

Shares of Bowlero Corp. (NYSE:BOWL – Get Rating) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $14.06, but opened at $13.35. Bowlero shares last traded at $11.53, with a volume of 1,672,575 shares trading hands.

The company reported $0.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.01). The firm had revenue of $315.73 million for the quarter, compared to analysts’ expectations of $302.34 million. Bowlero had a negative return on equity of 288.06% and a negative net margin of 4.19%. During the same period in the previous year, the company earned $0.30 earnings per share.

Wall Street Analyst Weigh In

BOWL has been the subject of a number of recent analyst reports. Canaccord Genuity Group initiated coverage on shares of Bowlero in a report on Wednesday, March 8th. They set a “buy” rating and a $22.00 price target for the company. Jefferies Financial Group initiated coverage on shares of Bowlero in a report on Wednesday, April 19th. They set a “buy” rating and a $23.00 price target for the company. Craig Hallum initiated coverage on shares of Bowlero in a report on Friday, February 24th. They set a “buy” rating for the company. JPMorgan Chase & Co. raised their price target on shares of Bowlero from $18.00 to $20.00 in a report on Friday, March 17th. Finally, Roth Capital restated a “buy” rating on shares of Bowlero in a report on Monday, February 6th. Seven equities research analysts have rated the stock with a buy rating, According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $20.75.

Insiders Place Their Bets

In other Bowlero news, Director A-B Parent Llc sold 4,908,234 shares of the business’s stock in a transaction on Thursday, March 16th. The shares were sold at an average price of $15.02, for a total value of $73,721,674.68. Following the completion of the transaction, the director now owns 63,484,324 shares in the company, valued at $953,534,546.48. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In related news, Director A-B Parent Llc sold 4,908,234 shares of the business’s stock in a transaction on Thursday, March 16th. The shares were sold at an average price of $15.02, for a total transaction of $73,721,674.68. Following the completion of the transaction, the director now owns 63,484,324 shares in the company, valued at $953,534,546.48. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CFO Brett I. Parker sold 2,390 shares of the business’s stock in a transaction on Tuesday, February 28th. The stock was sold at an average price of $16.00, for a total transaction of $38,240.00. Following the transaction, the chief financial officer now owns 2,047,799 shares of the company’s stock, valued at approximately $32,764,784. The disclosure for this sale can be found here. Insiders sold a total of 5,200,627 shares of company stock worth $78,451,248 over the last 90 days. Corporate insiders own 53.65% of the company’s stock.

Institutional Investors Weigh In On Bowlero

Institutional investors and hedge funds have recently made changes to their positions in the business. US Bancorp DE purchased a new position in Bowlero during the first quarter worth about $35,000. Point72 Hong Kong Ltd purchased a new position in Bowlero during the third quarter worth about $37,000. Tower Research Capital LLC TRC raised its holdings in Bowlero by 42.6% during the third quarter. Tower Research Capital LLC TRC now owns 3,049 shares of the company’s stock worth $38,000 after purchasing an additional 911 shares in the last quarter. Paragon Wealth Strategies LLC purchased a new position in Bowlero during the third quarter worth about $41,000. Finally, Neo Ivy Capital Management purchased a new position in Bowlero during the third quarter worth about $44,000. 64.88% of the stock is owned by hedge funds and other institutional investors.

Bowlero Stock Down 16.7 %

The stock has a market capitalization of $1.94 billion, a PE ratio of -35.48 and a beta of 0.20. The firm’s fifty day moving average is $14.97 and its 200-day moving average is $14.34.

Bowlero Company Profile

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Bowlero Corp. operates bowling entertainment centers under the AMF, Bowlmor Lanes, and Bowlero brand names. The company also provides hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. As of July 3, 2022, it operated approximately 317 centers in the United States, Mexico, and Canada.