Dave & Buster’s Entertainment (NASDAQ:PLAY) Stock Crosses Above 50-Day Moving Average – Should You Sell?

Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY)’s share price crossed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $7.75 and traded as high as $8.19. Dave & Buster’s Entertainment shares last traded at $8.13, with a volume of 1,407,365 shares.

Analyst Ratings Changes

A number of research firms have recently issued reports on PLAY. Zacks Research cut shares of Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a research note on Monday, September 28th. UBS Group decreased their price target on Dave & Buster’s Entertainment from $12.00 to $9.00 and set a “neutral” rating on the stock in a research report on Tuesday, September 15th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Dave & Buster’s Entertainment in a report on Thursday, October 15th. Citigroup reiterated a “market perform” rating on shares of Dave & Buster’s Entertainment in a research report on Tuesday, September 15th. Finally, BMO Capital Markets cut their price objective 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. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $17.33.

Dave & Buster’s Entertainment Price Performance

The company has a debt-to-equity ratio of 17.07, a current ratio of 0.30 and a quick ratio of 0.21. The firm has a market capitalization of $272.72 million, a P/E ratio of -3.05 and a beta of 1.92. The company’s 50 day moving average price is $7.71 and its 200 day moving average price is $11.65.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last posted its quarterly earnings data 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). The company had revenue of $544.10 million during the quarter, compared to the consensus estimate of $556.83 million. Dave & Buster’s Entertainment had a negative return on equity of 51.87% and a negative net margin of 4.26%. The business’s revenue for the quarter was down 2.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.32 EPS. As a group, sell-side analysts anticipate that Dave & Buster’s Entertainment, Inc. will post -1.58 EPS for the current fiscal year.

Insider Buying and Selling at Dave & Buster’s Entertainment

In other news, Director Nathaniel Lipman acquired 12,000 shares of the stock in a transaction that occurred on Thursday, September 17th. The stock was purchased at an average cost of $6.78 per share, for a total transaction of $81,360.00. Following the completion of the transaction, the director directly owned 30,715 shares in the company, valued at $208,247.70. This trade represents a 64.12% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Cory Hatton acquired 4,000 shares of the company’s stock in a transaction on Monday, September 28th. The shares were purchased at an average cost of $6.50 per share, with a total value of $26,000.00. Following the completion of the acquisition, the chief financial officer directly owned 104,475 shares in the company, valued at approximately $679,087.50. The trade was a 3.98% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 1.73% of the company’s stock.

Institutional Investors Weigh In On Dave & Buster’s Entertainment

Institutional investors have recently modified their holdings of the business. Public Employees Retirement System of Ohio acquired a new position in shares of Dave & Buster’s Entertainment during the 2nd quarter worth about $25,000. Legal & General Group Plc acquired a new stake in shares of Dave & Buster’s Entertainment in the second quarter valued at about $28,000. Persistent Asset Partners Ltd acquired a new stake in shares of Dave & Buster’s Entertainment in the second quarter valued at about $33,000. Headlands Technologies LLC bought a new stake in Dave & Buster’s Entertainment during the second quarter worth about $141,000. Finally, Farringdon Capital Ltd. bought a new stake in Dave & Buster’s Entertainment during the second quarter worth about $144,000. Institutional investors and hedge funds own 91.45% of the company’s stock.

Dave & Buster’s Entertainment Company Profile

Dave & Buster’s Entertainment, Inc operates entertainment and dining venues under the Dave & Buster’s and Main Event brands. Its locations combine arcade games, prize redemption, sports viewing and other interactive attractions with full-service restaurants and bars.

The company’s venues offer a range of video, arcade and skill-based games, as well as group entertainment options for parties, corporate events and other gatherings. Food and beverage offerings typically include American-style menu items, alcoholic and nonalcoholic drinks, and event packages.

Dave & Buster’s was founded in 1982, when James “Buster” Corley and David Corriveau opened the first location in Dallas, Texas.