Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) Sees Large Decline in Short Interest

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) was the target of a large decline in short interest during the month of March. As of March 31st, there was short interest totaling 8,341,575 shares, a decline of 14.9% from the March 15th total of 9,803,957 shares. Based on an average daily volume of 2,401,807 shares, the short-interest ratio is presently 3.5 days. Approximately 24.5% of the shares of the company are short sold.

Dave & Buster’s Entertainment Stock Up 0.3%

PLAY stock opened at $14.28 on Friday. Dave & Buster’s Entertainment has a twelve month low of $9.61 and a twelve month high of $35.53. The company has a market cap of $496.09 million, a PE ratio of -9.99 and a beta of 1.83. The business’s 50-day simple moving average is $13.78 and its 200 day simple moving average is $16.08. The company has a quick ratio of 0.19, a current ratio of 0.29 and a debt-to-equity ratio of 16.61.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last released its earnings results on Tuesday, March 31st. The restaurant operator reported ($0.35) earnings per share for the quarter, missing analysts’ consensus estimates of $0.39 by ($0.74). Dave & Buster’s Entertainment had a negative return on equity of 7.93% and a negative net margin of 2.32%.The firm had revenue of $529.60 million for the quarter, compared to analyst estimates of $556.56 million. During the same period last year, the business earned $0.69 earnings per share. The firm’s quarterly revenue was down .9% compared to the same quarter last year. On average, research analysts anticipate that Dave & Buster’s Entertainment will post 2.52 earnings per share for the current year.

More Dave & Buster’s Entertainment News

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

• Positive Sentiment: Senior management still retains a meaningful stake — after the April 17 sale the SVP owns 38,547 shares valued at roughly $566k, which may reassure some investors that insiders retain exposure. SEC Filing
• Neutral Sentiment: Trading volume is elevated versus average (about 2.9M vs ~1.39M), indicating larger investor activity that can amplify moves in either direction; this may reflect short‑term trading rather than a fundamental shift. MarketBeat PLAY Page
• Negative Sentiment: Insider sale: SVP Steve Klohn sold 6,989 shares at an average $14.69 on April 17, a 15.35% reduction in his holdings — insider selling can be interpreted negatively by the market. SEC Filing
• Negative Sentiment: Zacks Research issued a string of downward EPS revisions across FY2027–FY2029 (Q1–Q4 and full‑year cuts) and maintains a “Strong Sell” rating — these analyst reductions materially worsen near‑term earnings expectations and are likely weighing on sentiment. Bear of the Day: Dave & Buster’s (PLAY)
• Negative Sentiment: Third‑party earnings forecasts/coverage: recent coverage (including FY2029 commentary) highlights lowered outlooks and continued analyst skepticism, adding pressure to the stock’s valuation and investor confidence. FY2029 Forecast Article

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. UBS Group lowered their target price on Dave & Buster’s Entertainment from $20.00 to $19.00 and set a “neutral” rating on the stock in a report on Tuesday, January 6th. Benchmark raised Dave & Buster’s Entertainment from a “hold” rating to a “buy” rating and set a $30.00 target price on the stock in a report on Friday, January 16th. Zacks Research lowered 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. Finally, Truist Financial lowered their target price on Dave & Buster’s Entertainment from $23.00 to $18.00 and set a “hold” rating on the stock in a report on Thursday, January 8th. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $21.83.

Insiders Place Their Bets

In other Dave & Buster’s Entertainment news, SVP Steve Klohn sold 6,989 shares of the firm’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 value of $102,668.41. Following the sale, the senior vice president owned 38,547 shares of the company’s stock, valued at $566,255.43. This trade represents a 15.35% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 2.02% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Dave & Buster’s Entertainment

A number of hedge funds have recently made changes to their positions in the business. First Eagle Investment Management LLC acquired a new stake in shares of Dave & Buster’s Entertainment during the 3rd quarter valued at about $1,834,000. SG Americas Securities LLC boosted its position in shares of Dave & Buster’s Entertainment by 232.3% during the 4th quarter. SG Americas Securities LLC now owns 634,148 shares of the restaurant operator’s stock valued at $10,280,000 after acquiring an additional 443,308 shares in the last quarter. Clearline Capital LP boosted its position in shares of Dave & Buster’s Entertainment by 20.4% during the 3rd quarter. Clearline Capital LP now owns 1,619,964 shares of the restaurant operator’s stock valued at $29,419,000 after acquiring an additional 274,541 shares in the last quarter. Cibc World Market Inc. boosted its position in shares of Dave & Buster’s Entertainment by 236.9% during the 3rd quarter. Cibc World Market Inc. now owns 336,900 shares of the restaurant operator’s stock valued at $6,118,000 after acquiring an additional 236,900 shares in the last quarter. Finally, GSA Capital Partners LLP acquired a new stake in shares of Dave & Buster’s Entertainment during the 3rd quarter valued at about $837,000. Institutional investors and hedge funds own 91.45% of the company’s stock.

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.