Dave & Buster’s Entertainment (NASDAQ:PLAY) Stock Passes Above 50-Day Moving Average – Time to Sell?

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) crossed above its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of $11.80 and traded as high as $12.36. Dave & Buster’s Entertainment shares last traded at $11.30, with a volume of 1,159,246 shares trading hands.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Weiss Ratings reiterated a “sell (d)” rating on shares of Dave & Buster’s Entertainment in a report on Monday, April 20th. Zacks Research cut Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a report on Thursday, April 2nd. UBS Group reduced their price target on Dave & Buster’s Entertainment from $13.00 to $12.00 and set a “neutral” rating on the stock in a research report on Tuesday, June 16th. BMO Capital Markets reduced their price target on Dave & Buster’s Entertainment from $24.00 to $22.00 and set an “outperform” rating on the stock in a research report on Tuesday, June 16th. Finally, Piper Sandler decreased their price target on Dave & Buster’s Entertainment from $22.00 to $14.00 and set a “neutral” rating on the stock in a research note on Monday, April 6th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Dave & Buster’s Entertainment presently has an average rating of “Hold” and a consensus target price of $19.33.

Dave & Buster’s Entertainment Trading Down 6.5%

The company has a debt-to-equity ratio of 15.01, a current ratio of 0.29 and a quick ratio of 0.20. The stock’s 50 day moving average is $11.80 and its 200-day moving average is $14.51. The company has a market capitalization of $393.13 million, a P/E ratio of -5.98 and a beta of 1.81.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last posted its quarterly earnings data on Monday, June 15th. The restaurant operator reported $0.22 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.38). Dave & Buster’s Entertainment had a negative net margin of 3.09% and a negative return on equity of 24.19%. The firm had revenue of $559.20 million for the quarter, compared to the consensus estimate of $580.60 million. During the same period in the previous year, the firm posted $0.76 earnings per share. The business’s revenue was down 1.5% compared to the same quarter last year. As a group, equities research analysts anticipate that Dave & Buster’s Entertainment, Inc. will post -1.02 earnings per share for the current year.

Insider Activity at Dave & Buster’s Entertainment

In related news, SVP Steve Klohn sold 6,989 shares of Dave & Buster’s Entertainment stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $14.69, for a total transaction of $102,668.41. Following the sale, the senior vice president directly owned 38,547 shares in the company, 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 SEC, which is available through this hyperlink. 1.73% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Dave & Buster’s Entertainment

Several institutional investors and hedge funds have recently added to or reduced their stakes in PLAY. AQR Capital Management LLC purchased a new position in Dave & Buster’s Entertainment during the first quarter valued at $430,000. Creative Planning purchased a new stake in shares of Dave & Buster’s Entertainment in the 2nd quarter worth about $311,000. Marshall Wace LLP bought a new position in shares of Dave & Buster’s Entertainment in the 2nd quarter worth about $243,000. Cerity Partners LLC increased its stake in shares of Dave & Buster’s Entertainment by 13.2% in the 2nd quarter. Cerity Partners LLC now owns 22,654 shares of the restaurant operator’s stock worth $681,000 after acquiring an additional 2,644 shares in the last quarter. Finally, Caption Management LLC lifted its position in Dave & Buster’s Entertainment by 624.7% during the 2nd quarter. Caption Management LLC now owns 14,153 shares of the restaurant operator’s stock valued at $426,000 after acquiring an additional 12,200 shares during the period. Hedge funds and other institutional investors own 91.45% of the company’s stock.

About Dave & Buster’s Entertainment

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.