Dave & Buster’s Entertainment Inc. (NASDAQ:PLAY) finished Friday with a subtraction of -$0.45 to close at $40.53, a downside of -1.10 percent. An average of 782,240 shares of common stock have been traded in the last five days. There was a fall of -$2.19 in the past week, and it reached a new high 8 times over the past 12 months. The last 20 days have seen an average of 899,545 shares traded, while the 50-day average volume stands at 1,404,124.
PLAY stock has decreased by -11.24% in the last month. The company shares reached their 1-month lowest point of $40.05 on 08/11/23. With the stock rallying to its 52-week high on 06/13/23, shares of the company touched a low of $30.36 and a high of $47.29 in 52 weeks. It has reached a new high 14 times so far this year and achieved 14.36% or $5.09 in price. In spite of this, the price is down -14.29% from the 52-week high.
Insider Transactions
PLAY stock investors should be aware that Dave & Buster’s Entertainment Inc. (PLAY) stock had its last reported insider trading activity 58 days ago on Jun 15. In this transaction, the insider spent $324,811. SVP, RE & Dev, Mulleady John, disposed of 7,500 shares at a price of $35.00 on Mar 16. The insider now owns more than $262,500 worth of shares. Prior to that, SVP, RE & Dev Mulleady John went on to Sale 7,500 shares at $35.00 each on Dec 15. An amount of $262,500 was transacted.
Valuation Metrics
Dave & Buster’s Entertainment Inc. (PLAY) has a trailing price-to-earnings (P/E) ratio of 14.11. The stock’s beta is 2.01. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.83, the price-to-book (PB) ratio at 5.40, and the price-to-cash flow ratio at 12.20.
Financial Health
The quick ratio of Dave & Buster’s Entertainment Inc. for the three months ended April 29 was 0.40, and the current ratio was 0.50, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 3.39 and a total debt to equity ratio of 3.42 for the quarter ending April 29. Dave & Buster’s Entertainment Inc.’s EBITDA margin for the year ending April 29 is 24.15%, while its operating margin for the same period stands at 13.40%. Its gross profit as reported stood at $1.66 billion compared to revenue of $1.96 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Dave & Buster’s Entertainment Inc.’s return on assets was 3.80%.
Earnings Surprise
For the three-month period that ended April 29, Dave & Buster’s Entertainment Inc. had $1.22 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $70.1 million in the quarter, while revenues of $39.15 million were grew 4.45%. The analyst consensus anticipated Dave & Buster’s Entertainment Inc.’s latest quarter earnings to come in at $1.24 per share, but it turned out to be $1.45, a 16.90% surprise. For the quarter, EBITDA amounted to $170.3 million. Shareholders own equity worth $42.92 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Dave & Buster’s Entertainment Inc. (PLAY) price momentum. RSI 9-day as of the close on 11 August was 22.46%, suggesting the stock is oversold, with historical volatility in this time frame at 12.97%.
As of today, PLAY’s price is $41.67 -5.13% or -$2.19 from its 5-day moving average. PLAY is currently trading -10.90% lower than its 20-day SMA and +12.74% higher than its 100-day SMA. However, the stock’s current price level is +26.07% above the SMA50 and +12.71% above the SMA200.
The stochastic %K and %D were 4.84% and 6.01%, respectively, and the average true range (ATR) was 1.22. With the 14-day stochastic at 7.14% and the average true range at 1.28, the RSI (14) stands at 33.73%. The stock has reached -1.57 on the 9-day MACD Oscillator while the 14-day reading was at -2.61.
Analyst Ratings
Piper Sandler launched coverage on Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY) in its analyst report released on July 18, 2023. The firm assigned the stock an Overweight rating. The consensus rating for Dave & Buster’s Entertainment Inc. (PLAY) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell PLAY, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 8 others rate it as a “buy”.
What is PLAY’s price target for the next 12 months?
Analysts predict a range of price targets between $40.00 and $63.00, with a median target of $60.00. Taking a look at these predictions, the average price target given by analysts for Dave & Buster’s Entertainment Inc. (PLAY) stock is $56.44.
