Dave & Buster’s Entertainment (NASDAQ:PLAY) Stock Rating Cut to “Strong Sell” at Zacks Research

Dave & Buster’s Entertainment (NASDAQ:PLAY) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors 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.

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

Dave & Buster’s Entertainment Stock Up 1.2%

Shares of PLAY stock opened at $6.49 on Monday. Dave & Buster’s Entertainment has a 1 year low of $6.38 and a 1 year high of $22.10. The company has a debt-to-equity ratio of 17.07, a quick ratio of 0.21 and a current ratio of 0.30. The business’s fifty day moving average is $9.09 and its 200-day moving average is $10.79. The stock has a market cap of $226.05 million, a PE ratio of -2.53 and a beta of 1.82.

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

Insider Buying and Selling at Dave & Buster’s Entertainment

In related news, Director Nathaniel Lipman bought 12,000 shares of the business’s stock in a transaction on Thursday, September 17th. The shares were bought at an average cost of $6.78 per share, for a total transaction of $81,360.00. Following the completion of the acquisition, the director directly owned 30,715 shares in the company, valued at approximately $208,247.70. This represents a 64.12% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Cory Hatton acquired 4,000 shares of the business’s stock in a transaction that occurred on Monday, September 28th. The stock was bought at an average cost of $6.50 per share, for a total transaction of $26,000.00. Following the completion of the purchase, the chief financial officer directly owned 104,475 shares in the company, valued at $679,087.50. This represents a 3.98% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 1.73% of the company’s stock.

Institutional Trading of Dave & Buster’s Entertainment

A number of institutional investors and hedge funds have recently modified their holdings of the company. Cibc World Market Inc. bought a new position in Dave & Buster’s Entertainment in the 2nd quarter worth $2,098,000. ING Groep NV acquired a new stake in shares of Dave & Buster’s Entertainment in the fourth quarter valued at about $7,311,000. BlackRock Inc. bought a new position in shares of Dave & Buster’s Entertainment in the second quarter worth about $36,725,000. Wolf Hill Capital Management LP acquired a new position in shares of Dave & Buster’s Entertainment during the 2nd quarter worth about $15,468,694. Finally, Patient Capital Management LLC acquired a new stake in Dave & Buster’s Entertainment in the 2nd quarter valued at approximately $2,326,000. 91.45% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines 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.

About Dave & Buster’s Entertainment

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.