Dave & Buster’s Entertainment Inc (NASDAQ:PLAY) Sees Significant Decline in Short Interest

Dave & Buster’s Entertainment Inc (NASDAQ:PLAY) was the recipient of a significant decrease in short interest in November. As of November 15th, there was short interest totalling 6,320,000 shares, a decrease of 25.9% from the October 31st total of 8,530,000 shares. Based on an average trading volume of 1,420,000 shares, the days-to-cover ratio is presently 4.5 days. Approximately 16.4% of the shares of the company are sold short.

Dave & Buster’s Entertainment Price Performance

Shares of NASDAQ PLAY traded up $1.70 during trading hours on Friday, hitting $39.32. 750,251 shares of the stock were exchanged, compared to its average volume of 1,098,037. The company’s fifty day simple moving average is $36.14 and its two-hundred day simple moving average is $37.75. The company has a market cap of $1.55 billion, a PE ratio of 14.35 and a beta of 2.13. The company has a debt-to-equity ratio of 4.54, a quick ratio of 0.14 and a current ratio of 0.24. Dave & Buster’s Entertainment has a 1-year low of $29.31 and a 1-year high of $69.82.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last issued its quarterly earnings results on Tuesday, September 10th. The restaurant operator reported $1.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.84 by $0.28. Dave & Buster’s Entertainment had a return on equity of 51.75% and a net margin of 5.10%. The company had revenue of $557.10 million for the quarter, compared to analyst estimates of $560.65 million. During the same quarter last year, the company posted $0.94 EPS. The company’s revenue for the quarter was up 2.8% compared to the same quarter last year. On average, sell-side analysts predict that Dave & Buster’s Entertainment will post 2.59 EPS for the current year.

Wall Street Analyst Weigh In

Several brokerages have issued reports on PLAY. Benchmark began coverage on shares of Dave & Buster’s Entertainment in a research report on Monday, October 7th. They set a “hold” rating for the company. StockNews.com downgraded Dave & Buster’s Entertainment from a “hold” rating to a “sell” rating in a research note on Wednesday, September 11th. Truist Financial lowered their price objective on Dave & Buster’s Entertainment from $59.00 to $56.00 and set a “buy” rating on the stock in a research report on Tuesday, November 26th. Loop Capital reduced their target price on shares of Dave & Buster’s Entertainment from $63.00 to $59.00 and set a “buy” rating for the company in a research report on Thursday, September 12th. Finally, BMO Capital Markets lowered their price target on shares of Dave & Buster’s Entertainment from $55.00 to $51.00 and set an “outperform” rating on the stock in a research report on Tuesday, November 26th. One investment analyst has rated the stock with a sell rating, four have given a hold rating and five have given a buy rating to the stock. According to MarketBeat, Dave & Buster’s Entertainment currently has an average rating of “Hold” and a consensus target price of $61.57.

Insiders Place Their Bets

In related news, CEO Christopher Daniel Morris acquired 14,912 shares of Dave & Buster’s Entertainment stock in a transaction on Monday, October 7th. The stock was purchased at an average cost of $33.67 per share, with a total value of $502,087.04. Following the completion of the transaction, the chief executive officer now directly owns 83,847 shares in the company, valued at $2,823,128.49. This trade represents a 21.63 % increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.60% of the company’s stock.

Institutional Trading of Dave & Buster’s Entertainment

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Louisiana State Employees Retirement System increased its holdings in Dave & Buster’s Entertainment by 1.9% in the 2nd quarter. Louisiana State Employees Retirement System now owns 16,200 shares of the restaurant operator’s stock worth $645,000 after purchasing an additional 300 shares in the last quarter. GDS Wealth Management grew its holdings in shares of Dave & Buster’s Entertainment by 3.3% during the third quarter. GDS Wealth Management now owns 15,202 shares of the restaurant operator’s stock worth $518,000 after purchasing an additional 488 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of Dave & Buster’s Entertainment by 2.5% during the first quarter. Price T Rowe Associates Inc. MD now owns 22,757 shares of the restaurant operator’s stock worth $1,425,000 after purchasing an additional 546 shares during the last quarter. Kimelman & Baird LLC acquired a new position in shares of Dave & Buster’s Entertainment in the second quarter valued at approximately $28,000. Finally, Cerity Partners LLC raised its holdings in Dave & Buster’s Entertainment by 3.2% in the 3rd quarter. Cerity Partners LLC now owns 23,204 shares of the restaurant operator’s stock valued at $790,000 after buying an additional 710 shares during the last quarter. Institutional investors own 91.45% of the company’s stock.

Dave & Buster’s Entertainment Company Profile

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.