Bowlero (NYSE:BOWL) Shares Gap Up on Better-Than-Expected Earnings

Shares of Bowlero Corp. (NYSE:BOWL - Get Free Report) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $10.38, but opened at $12.31. Bowlero shares last traded at $12.28, with a volume of 204,164 shares changing hands.

The company reported $0.13 earnings per share for the quarter, topping the consensus estimate of ($0.17) by $0.30. Bowlero had a negative net margin of 7.24% and a negative return on equity of 5.36%. The business had revenue of $260.20 million for the quarter, compared to analysts' expectations of $249.42 million. During the same quarter last year, the company posted ($0.10) EPS.

Bowlero Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 6th. Stockholders of record on Friday, November 22nd will be given a dividend of $0.055 per share. The ex-dividend date is Friday, November 22nd. This represents a $0.22 dividend on an annualized basis and a dividend yield of 1.90%. Bowlero's payout ratio is -33.85%.

Analysts Set New Price Targets

Several brokerages have issued reports on BOWL. Piper Sandler started coverage on Bowlero in a research report on Monday, October 28th. They set a "neutral" rating and a $12.00 target price for the company. Royal Bank of Canada upgraded shares of Bowlero to a "moderate buy" rating in a research note on Thursday, October 3rd. B. Riley reaffirmed a "buy" rating and set a $17.00 target price on shares of Bowlero in a research report on Tuesday, September 3rd. JPMorgan Chase & Co. dropped their target price on shares of Bowlero from $16.00 to $15.00 and set an "overweight" rating on the stock in a report on Tuesday. Finally, Canaccord Genuity Group restated a "buy" rating and issued a $18.00 price target on shares of Bowlero in a report on Monday, September 30th. Two research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $15.88.

Hedge Funds Weigh In On Bowlero

Hedge funds and other institutional investors have recently made changes to their positions in the business. Russell Investments Group Ltd. acquired a new position in shares of Bowlero during the 1st quarter valued at about $1,636,000. Boston Partners raised its position in shares of Bowlero by 6.0% in the 1st quarter. Boston Partners now owns 3,646,113 shares of the company's stock valued at $49,004,000 after acquiring an additional 205,902 shares during the period. Champlain Investment Partners LLC raised its holdings in Bowlero by 10.8% during the 1st quarter. Champlain Investment Partners LLC now owns 2,817,305 shares of the company's stock worth $38,597,000 after buying an additional 275,525 shares during the period. Lisanti Capital Growth LLC acquired a new position in Bowlero during the second quarter worth $2,648,000. Finally, Marshall Wace LLP raised its position in Bowlero by 101.5% during the second quarter. Marshall Wace LLP now owns 363,784 shares of the company's stock worth $5,271,000 after acquiring an additional 183,252 shares in the last quarter. 68.11% of the stock is currently owned by institutional investors and hedge funds.

Bowlero Trading Up 11.7 %

The firm has a market cap of $1.71 billion, a P/E ratio of -17.83 and a beta of 0.62. The business has a 50 day moving average of $11.47 and a two-hundred day moving average of $12.17.

About Bowlero

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. It operates bowling centers in the United States, Mexico, and Canada.