Clearline Capital LP Cuts Holdings in Dave & Buster’s Entertainment, Inc. $PLAY

Clearline Capital LP decreased its position in Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) by 57.8% in the fourth quarter, Holdings Channel reports. The institutional investor owned 683,408 shares of the restaurant operator’s stock after selling 936,556 shares during the period. Clearline Capital LP’s holdings in Dave & Buster’s Entertainment were worth $11,078,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in PLAY. Advisory Services Network LLC purchased a new position in Dave & Buster’s Entertainment in the third quarter valued at $27,000. Caitong International Asset Management Co. Ltd increased its holdings in Dave & Buster’s Entertainment by 616.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,942 shares of the restaurant operator’s stock valued at $31,000 after buying an additional 1,671 shares in the last quarter. Leonteq Securities AG purchased a new position in Dave & Buster’s Entertainment in the fourth quarter valued at $42,000. Quadrant Capital Group LLC purchased a new position in Dave & Buster’s Entertainment in the third quarter valued at $104,000. Finally, Tower Research Capital LLC TRC increased its holdings in Dave & Buster’s Entertainment by 292.4% in the second quarter. Tower Research Capital LLC TRC now owns 5,062 shares of the restaurant operator’s stock valued at $152,000 after buying an additional 3,772 shares in the last quarter. Hedge funds and other institutional investors own 91.45% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on PLAY shares. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Dave & Buster’s Entertainment in a report on Monday, April 20th. Piper Sandler cut their price objective on shares of Dave & Buster’s Entertainment from $22.00 to $14.00 and set a “neutral” rating for the company in a report on Monday, April 6th. BMO Capital Markets cut their price objective on shares of Dave & Buster’s Entertainment from $24.00 to $22.00 and set an “outperform” rating for the company in a report on Tuesday. UBS Group cut their price objective on shares of Dave & Buster’s Entertainment from $13.00 to $12.00 and set a “neutral” rating for the company in a report on Tuesday. Finally, Zacks Research cut shares of Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a report on Thursday, April 2nd. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $19.33.

Key Dave & Buster’s Entertainment News

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

• Positive Sentiment: Some articles point to potential turnaround drivers, including new games, stronger value messaging, remodel gains, improved food sales, and tighter cash flow discipline that could help recovery later in the year. Article Title
• Positive Sentiment: One report says internal metrics are showing traction in remodeled stores and that institutional investors are accumulating shares, suggesting some market participants still see recovery potential. Article Title
• Positive Sentiment: Analysts note the stock’s steep valuation discount may appeal to bargain hunters if management can deliver a sustained improvement in traffic and margins. Article Title
• Neutral Sentiment: Management is leaning on a “back-to-basics” turnaround plan focused on restoring traffic, improving entertainment sales, and proving cash flow can support a rebound. Article Title
• Negative Sentiment: The main catalyst for the selloff is the Q1 earnings report, where Dave & Buster’s missed expectations on both profits and revenue, while comparable sales fell 5.4% and consumer demand softened. Article Title
• Negative Sentiment: Several reports highlight higher operating costs, weak comps, and estimate cuts from analysts, all of which are making investors question how quickly PLAY can recover. Article Title
• Negative Sentiment: Commentary from Benchmark and others says the disappointing quarter shows the recovery remains elusive, reinforcing the bearish tone around the stock. Article Title

Dave & Buster’s Entertainment Stock Down 3.1%

PLAY stock opened at $11.19 on Thursday. The stock has a market capitalization of $389.30 million, a P/E ratio of -5.92 and a beta of 1.81. The firm has a 50-day simple moving average of $11.97 and a 200-day simple moving average of $14.76. The company has a quick ratio of 0.19, a current ratio of 0.29 and a debt-to-equity ratio of 15.01. Dave & Buster’s Entertainment, Inc. has a 52 week low of $9.61 and a 52 week high of $35.53.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last released its earnings results on Monday, June 15th. The restaurant operator reported $0.22 EPS for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.38). The company had revenue of $559.20 million for the quarter, compared to analysts’ expectations of $580.60 million. Dave & Buster’s Entertainment had a negative return on equity of 24.19% and a negative net margin of 3.09%.The firm’s revenue for the quarter was down 1.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.76 EPS. Equities analysts forecast that Dave & Buster’s Entertainment, Inc. will post -0.77 earnings per share for the current fiscal year.

Insider Activity at Dave & Buster’s Entertainment

In other news, SVP Steve Klohn sold 6,989 shares of the business’s stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $14.69, for a total transaction of $102,668.41. Following the completion of the sale, the senior vice president owned 38,547 shares of the company’s stock, valued at $566,255.43. The trade was a 15.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.73% of the stock is owned by corporate insiders.

Dave & Buster’s Entertainment 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.