Dave & Buster’s Entertainment (NASDAQ:PLAY) Stock Bumped Down to “Strong Sell” by Zacks Research

Zacks Research lowered shares of Dave & Buster’s Entertainment (NASDAQ:PLAY) from a hold rating to a strong sell rating in a research note released on Monday,Zacks reports. Zacks Research also issued estimates for Dave & Buster’s Entertainment’s Q3 2027 earnings at ($1.42) EPS, Q4 2027 earnings at ($0.10) EPS, FY2027 earnings at ($1.57) EPS, Q1 2028 earnings at $0.23 EPS, Q2 2028 earnings at ($0.05) EPS, Q3 2028 earnings at ($1.45) EPS, Q4 2028 earnings at ($0.21) EPS, FY2028 earnings at ($1.49) EPS, Q1 2029 earnings at $0.56 EPS, Q2 2029 earnings at ($0.15) EPS and FY2029 earnings at ($0.83) EPS.

PLAY has been the subject of several other reports. Citigroup reissued a “market perform” rating on shares of Dave & Buster’s Entertainment in a research note on Tuesday, September 15th. Citizens Jmp initiated coverage on Dave & Buster’s Entertainment in a report on Monday, June 29th. They set a “market perform” rating for the company. UBS Group decreased their price target on Dave & Buster’s Entertainment from $12.00 to $9.00 and set a “neutral” rating for the company in a research report on Tuesday, September 15th. BMO Capital Markets decreased their price target on Dave & Buster’s Entertainment from $22.00 to $13.00 and set an “outperform” rating for the company in a research report on Tuesday, September 15th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Dave & Buster’s Entertainment in a research note on Friday, July 17th. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Dave & Buster’s Entertainment presently has a consensus rating of “Hold” and a consensus price target of $17.33.

Dave & Buster’s Entertainment Stock Performance

NASDAQ:PLAY opened at $6.49 on Monday. The company has a 50-day moving average of $9.09 and a 200-day moving average of $10.79. The firm has a market cap of $226.05 million, a price-to-earnings ratio of -2.53 and a beta of 1.82. The company has a current ratio of 0.30, a quick ratio of 0.21 and a debt-to-equity ratio of 17.07. Dave & Buster’s Entertainment has a twelve month low of $6.38 and a twelve month high of $22.10.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last released its earnings results on Monday, September 14th. The restaurant operator reported ($0.27) EPS for the quarter, missing analysts’ consensus estimates of $0.19 by ($0.46). Dave & Buster’s Entertainment had a negative return on equity of 51.87% and a negative net margin of 4.26%.The business had revenue of $544.10 million during the quarter, compared to the consensus estimate of $556.83 million. During the same quarter in the previous year, the firm earned $0.32 earnings per share. The firm’s revenue for the quarter was down 2.4% compared to the same quarter last year. Analysts forecast that Dave & Buster’s Entertainment will post -1.39 earnings per share for the current fiscal year.

Insider Activity at Dave & Buster’s Entertainment

In related news, Director Nathaniel Lipman bought 12,000 shares of the firm’s stock in a transaction on Thursday, September 17th. The stock was bought at an average price of $6.78 per share, with a total value of $81,360.00. Following the purchase, the director directly owned 30,715 shares of the company’s stock, valued at approximately $208,247.70. This represents a 64.12% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CFO Cory Hatton purchased 4,000 shares of the stock in a transaction dated Monday, September 28th. The shares were bought at an average price of $6.50 per share, for a total transaction of $26,000.00. Following the completion of the acquisition, the chief financial officer owned 104,475 shares in the company, valued at $679,087.50. This represents a 3.98% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 1.73% of the stock is currently owned by corporate insiders.

Institutional Trading of Dave & Buster’s Entertainment

Several hedge funds and other institutional investors have recently modified their holdings of PLAY. Public Employees Retirement System of Ohio purchased a new position in Dave & Buster’s Entertainment in the second quarter valued at about $25,000. Legal & General Group Plc purchased a new stake in shares of Dave & Buster’s Entertainment during the 2nd quarter worth about $28,000. Persistent Asset Partners Ltd purchased a new stake in shares of Dave & Buster’s Entertainment during the 2nd quarter worth about $33,000. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Dave & Buster’s Entertainment by 1,547.2% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,464 shares of the restaurant operator’s stock valued at $72,000 after buying an additional 4,193 shares during the last quarter. Finally, Headlands Technologies LLC acquired a new stake in shares of Dave & Buster’s Entertainment during the 2nd quarter valued at about $141,000. 91.45% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Dave & Buster’s Entertainment

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

• Positive Sentiment: CFO Cory Hatton purchased 4,000 shares at an average price of $6.50, increasing his direct stake by approximately 4%. The insider purchase may signal management confidence that the stock has been oversold. Dave & Buster’s Entertainment CFO Cory Hatton Purchases 4,000 Shares of Stock
• Neutral Sentiment: Zacks Research maintained a “Hold” rating, despite making numerous changes to its forecasts. It raised estimates for Q4 2027 EPS to a loss of $0.10 from $0.18 and Q1 2029 EPS to $0.56 from $0.36, but these improvements were outweighed by broader reductions.
• Negative Sentiment: Zacks cut its FY2027 EPS forecast to a loss of $1.57 from $1.18 and reduced FY2028 EPS to a loss of $1.49 from $1.09. It also lowered estimates for Q2 2028, Q3 2028, Q4 2028, Q2 2029 and FY2029, suggesting analysts expect prolonged earnings weakness. Zacks Research Has Pessimistic Opinion of PLAY Q1 Earnings
• Negative Sentiment: Moody’s cut its outlook on Dave & Buster’s to negative, citing a sales slump. The action adds credit-risk concerns for a company with a debt-to-equity ratio above 17 and could weigh on investor confidence. Moody’s cuts Dave & Buster’s outlook to negative on sales slump
• Negative Sentiment: The company’s latest reported quarter included an EPS loss of $0.27 versus expectations for $0.19 of profit, while revenue declined 2.4% year over year and missed estimates. The results reinforce concerns about the turnaround and help explain the stock’s sharp decline from its one-year high.

Dave & Buster’s Entertainment Company Profile

Dave & Buster’s Entertainment, Inc (NASDAQ: PLAY) is an entertainment and dining company that operates venues combining arcade games, sports viewing, food and beverages, and social experiences. Its Dave & Buster’s locations are designed for adults and families and offer interactive games, prize redemption, casual dining, full-service bars, and space for group events and parties.

The company also operates Main Event, a family entertainment brand offering bowling, arcade games, laser tag, virtual reality attractions, and food and beverages.