Dave & Buster’s Entertainment Inc. (PLAY) Volatility Spurs A Quest For Clarity


BlackRock Fund Advisors recently announced the acquisition of new stake in Dave & Buster’s Entertainment Inc. (NASDAQ:PLAY). The institutional investor has increased its shareholding in the Consumer Cyclical company by 54.26% to 6.55 million shares with purchase of 2.3 million shares. This fresh investment now brings its stake to 13.80% valued currently at $80.79 million. In addition, The Vanguard Group, Inc. raised its holdings by 1.15 million to 4.48 million shares. And Eminence Capital LP has lifted its position by 108.04% or 1.82 million shares – to 3.5 million shares.

With over 4.8 million Dave & Buster’s Entertainment Inc. (PLAY) shares trading Monday and a closing price of $14.50 on the day, the dollar volume was approximately $69.65 million. The shares have shown a positive weekly performance of 0.90% and its price on 08/24/20 gained nearly 7.33%. Currently, there are 47.45M common shares owned by the public and among those 43.13M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for PLAY have a consensus price objective of $16.60. The analysts have set the share’s price value over the next 12 months at a high of $25.00 and a low of $12.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Dave & Buster’s Entertainment Inc. stock is 2.80 for the next 12 months. The average price target is 12.65% above its last price level and an upside to the estimated low will see the stock lose -20.83% over that period. But an upside of 42.0% will see the stock hit the forecast high price target while mean target price for the stock is $15.00.

Insiders at the company have transacted a total of 63 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 43 of these insider trades were purchases, accounting for 614,494 shares. Insider sales of the common stock occurred on 20 occasions, with total insider shares sold totaling 146,826 shares.

The top 3 mutual fund holders in Dave & Buster’s Entertainment Inc. are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. iShares Core S&P Small Cap ETF owns 2.95 million shares of the company’s stock, all valued at over $36.4 million. The company bought an additional 10542.0 shares recently to bring their total holdings to about 6.22% of the shares outstanding. Vanguard Total Stock Market Index bought 432.0 shares to see its total holdings expand to 1.37 million shares valued at over $16.85 million and representing 2.88% of the shares outstanding. Vanguard Small Cap Index Fund sold 7000.0 shares to bring its total holdings to over 1.18 million shares at a value of $14.57 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.49% of the shares outstanding.

Shares of Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY) opened at $13.79, up $0.28 from a prior closing price of $13.51. However, the script later closed the day at $14.50, up 7.33%. The company’s stock has a 5-day price change of 0.90% and 18.66% over the past three months. PLAY shares are trading -63.90% year to date (YTD), with the 12-month market performance down to -64.13% lower. It has a 12-month low price of $4.61 and touched a high of $48.80 over the same period. Currently, 4.8 million shares have been traded, compared to an average intraday trading volume of 8.78 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.29%, 5.37%, and -41.62% respectively.

Institutional ownership of Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY) shares accounts for 86.70% of the company’s 47.45M shares outstanding. Mutual fund holders own 37.53%, while other institutional holders and individual stakeholders account for 48.08% and 10.70% respectively.

It has a market capitalization of $701.22M and a beta (3y monthly) value of 1.56. The stock’s trailing 12-month PE ratio is 42.03, while the earnings-per-share (ttm) stands at $0.35. The company has a PEG of 9.18 and a Quick Ratio of 0.60 with the debt-to-equity ratio at 3.90. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.57% over the week and 7.04% over the month.

Analysts forecast that Dave & Buster’s Entertainment Inc. (PLAY) will achieve an EPS of -$1.41 for the current quarter, -$0.74 for the next quarter and $0.28 for 2022. The lowest estimate earnings-per-share for the quarter is -$2.1 while analysts give the company a high EPS estimate of -$0.78. Comparatively, EPS for the current quarter was $0.9 a year ago. Earnings per share for the fiscal year are expected to increase by 0.30%, and 108.00% over the next financial year. EPS should shrink at an annualized rate of 4.58% over the next five years, compared to 70.20% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate Dave & Buster’s Entertainment Inc. (PLAY) as a “Moderate Buy” at a consensus score of 2.80. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 10 of the 12 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the PLAY, a number of firms have released research notes about the stock. SunTrust stated their Buy rating for the stock in a research note on June 12, 2020, with the firm’s price target at. BMO Capital Markets coverage for the Dave & Buster’s Entertainment Inc. (PLAY) stock in a research note released on April 03, 2020 offered a Market Perform rating with a price target of $13. Piper Sandler was of a view on March 17, 2020 that the stock is Neutral, while Stifel gave the stock Hold rating on September 19, 2019, issuing a price target of $45. William Blair on their part issued Mkt Perform rating on September 11, 2019.


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