Dave & Buster's Entertainment (NASDAQ:PLAY) Shares Gap Up on Better-Than-Expected Earnings

Dave & Buster's Entertainment Inc (NASDAQ:PLAY - Get Free Report) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $16.19, but opened at $18.53. Dave & Buster's Entertainment shares last traded at $17.09, with a volume of 508,061 shares traded.

The restaurant operator reported $0.69 earnings per share for the quarter, beating analysts' consensus estimates of $0.64 by $0.05. Dave & Buster's Entertainment had a return on equity of 44.22% and a net margin of 3.88%. The business had revenue of $534.50 million for the quarter, compared to analysts' expectations of $548.77 million. During the same quarter in the prior year, the business earned $0.88 EPS. The firm's revenue for the quarter was down 10.8% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on PLAY. BMO Capital Markets decreased their price target on shares of Dave & Buster's Entertainment from $47.00 to $30.00 and set an "outperform" rating on the stock in a research note on Wednesday. Loop Capital cut their price objective on shares of Dave & Buster's Entertainment from $45.00 to $35.00 and set a "buy" rating for the company in a research report on Tuesday, April 8th. Truist Financial decreased their target price on shares of Dave & Buster's Entertainment from $27.00 to $21.00 and set a "hold" rating on the stock in a report on Wednesday, April 2nd. Finally, Piper Sandler cut their price target on shares of Dave & Buster's Entertainment from $33.00 to $22.00 and set a "neutral" rating for the company in a report on Tuesday, April 8th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and two have given a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $33.00.

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Institutional Investors Weigh In On Dave & Buster's Entertainment

Hedge funds and other institutional investors have recently made changes to their positions in the stock. SBI Securities Co. Ltd. bought a new position in Dave & Buster's Entertainment in the 4th quarter valued at approximately $47,000. KBC Group NV lifted its stake in shares of Dave & Buster's Entertainment by 81.3% in the 4th quarter. KBC Group NV now owns 1,974 shares of the restaurant operator's stock valued at $58,000 after acquiring an additional 885 shares during the last quarter. KLP Kapitalforvaltning AS acquired a new stake in shares of Dave & Buster's Entertainment during the 4th quarter valued at $175,000. Aristides Capital LLC bought a new stake in Dave & Buster's Entertainment during the 4th quarter worth $207,000. Finally, Parallax Volatility Advisers L.P. grew its position in Dave & Buster's Entertainment by 9.3% during the 4th quarter. Parallax Volatility Advisers L.P. now owns 7,441 shares of the restaurant operator's stock worth $217,000 after acquiring an additional 632 shares during the last quarter. 91.45% of the stock is owned by institutional investors.

Dave & Buster's Entertainment Trading Down 2.9 %

The company has a debt-to-equity ratio of 6.38, a quick ratio of 0.19 and a current ratio of 0.29. The firm has a market cap of $590.21 million, a price-to-earnings ratio of 8.47 and a beta of 1.86. The business has a fifty day simple moving average of $20.56 and a 200-day simple moving average of $28.55.

About Dave & Buster's Entertainment

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.