Lucky Strike Entertainment (NYSE:LUCK) Shares Gap Down After Earnings Miss

Lucky Strike Entertainment (NYSE:LUCK) shares gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $4.42, but opened at $3.66. Lucky Strike Entertainment shares last traded at $3.8260, with a volume of 888 shares traded.

The company reported ($0.21) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($0.10). The business had revenue of $302.64 million during the quarter, compared to analysts’ expectations of $297.79 million.

Lucky Strike Entertainment Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 22nd. Shareholders of record on Tuesday, September 8th were issued a $0.06 dividend. This represents a $0.24 annualized dividend and a dividend yield of 6.3%. The ex-dividend date was Tuesday, September 8th. Lucky Strike Entertainment’s dividend payout ratio (DPR) is presently -70.59%.

Lucky Strike Entertainment News Summary

Here are the key news stories impacting Lucky Strike Entertainment this week:

• Positive Sentiment: Lucky Strike reaffirmed its fiscal 2027 EBITDA guidance of $340 million to $360 million and said it is targeting about $100 million in debt reduction. Lucky Strike reaffirms fiscal 2027 EBITDA guidance and debt-reduction target
• Neutral Sentiment: Fiscal Q1 revenue was $302.64 million, above analysts’ $297.79 million estimate, though the beat was modest. The company also issued fiscal 2027 revenue guidance of about $1.3 billion, in line with consensus. Lucky Strike reports first-quarter results
• Negative Sentiment: The company lost $0.21 per share, worse than the $0.11 loss analysts expected and the $0.12 loss a year earlier. The earnings miss, alongside the suspension of its dividend, appears to be weighing on investor sentiment; suspending the payout also removes a source of shareholder income. Lucky Strike reports Q1 loss, beats revenue estimates Lucky Strike after dividend suspension

Analysts Set New Price Targets

LUCK has been the topic of a number of recent analyst reports. Zacks Research upgraded shares of Lucky Strike Entertainment from a “strong sell” rating to a “hold” rating in a report on Monday, October 26th. Roth Capital set a $6.50 price objective on shares of Lucky Strike Entertainment in a research note on Friday, August 28th. Truist Financial decreased their price objective on shares of Lucky Strike Entertainment from $9.00 to $8.00 and set a “buy” rating for the company in a research note on Friday, October 23rd. Weiss Ratings reiterated a “sell (d)” rating on shares of Lucky Strike Entertainment in a research report on Thursday, October 29th. Finally, Stifel Nicolaus cut their target price on shares of Lucky Strike Entertainment from $9.00 to $8.00 and set a “buy” rating on the stock in a research note on Friday, August 28th. Four investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $8.17.

Insider Transactions at Lucky Strike Entertainment

In other Lucky Strike Entertainment news, CEO Thomas Shannon acquired 30,000 shares of the firm’s stock in a transaction on Wednesday, September 9th. The stock was purchased at an average cost of $5.86 per share, for a total transaction of $175,800.00. Following the transaction, the chief executive officer owned 3,144,000 shares of the company’s stock, valued at $18,423,840. The trade was a 0.96% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Sandeep Mathrani bought 9,350 shares of the stock in a transaction on Friday, August 28th. The shares were acquired at an average cost of $6.41 per share, for a total transaction of $59,933.50. Following the purchase, the director owned 9,350 shares in the company, valued at approximately $59,933.50. This represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have acquired a total of 43,537 shares of company stock valued at $261,064 over the last 90 days. Corporate insiders own 84.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Rice Hall James & Associates LLC increased its stake in Lucky Strike Entertainment by 52.7% in the 1st quarter. Rice Hall James & Associates LLC now owns 481,189 shares of the company’s stock valued at $4,003,000 after buying an additional 166,104 shares during the period. Great Lakes Advisors LLC purchased a new stake in Lucky Strike Entertainment in the 2nd quarter worth approximately $1,361,000. Finally, Squarepoint Ops LLC boosted its stake in shares of Lucky Strike Entertainment by 69.8% during the 2nd quarter. Squarepoint Ops LLC now owns 22,158 shares of the company’s stock valued at $166,000 after buying an additional 9,112 shares during the period. 68.11% of the stock is owned by hedge funds and other institutional investors.

Lucky Strike Entertainment Stock Performance

The business’s 50 day simple moving average is $5.17 and its 200-day simple moving average is $7.18. The company has a market cap of $521.46 million, a price-to-earnings ratio of -11.25 and a beta of 0.71.

Lucky Strike Entertainment Company Profile

Lucky Strike Entertainment Corp. is an operator of location-based entertainment venues centered on bowling. The company provides recreational and social experiences through bowling lanes, arcade games, food and beverage offerings, and spaces for parties, corporate events and other group gatherings.

The company operates venues under brands that include Lucky Strike, Bowlero and AMF, serving customers across the United States and Canada. Its locations range from upscale entertainment venues to traditional bowling centers, with offerings designed for families, casual visitors, league bowlers and private-event guests.

Lucky Strike Entertainment was previously known as Bowlero Corp.