The stock of Dave & Buster’s Entertainment Inc. (NASDAQ:PLAY) increased by $0.34 on Tuesday to finish at $36.51, up 0.94 percent. The last five days have seen an average of 1,861,300 shares of common stock traded. 14 times new highs were reached in the current year, with a gain of $1.07. The average number of shares traded over the last 20 days was 1,639,800, while the average volume over the last 50 days totaled 1,199,372.
PLAY stock dropped -8.95% since last month. On 09/11/23, the company’s shares reached a one-month low of $34.34. The stock touched a high of $47.29 on 06/13/23, after rallying from a low of $30.36 in 52 weeks. The price of PLAY stock has risen by 3.02% or $1.07 this year, reaching a new high 14 times. Still, the stock price is down -22.80% 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 5 days ago on Sep 15. On Sep 15, SVP, RE & Dev Mulleady John sold 7,500 shares at $36.40 each. This transaction resulted in the insider making $273,000. On Sep 12, Griffith Michael J sold 6,470 shares at a price of US$35.23. After the transaction, the insider now owns 33,546 shares. SVP, RE & Dev Mulleady John had earlier sold 7,500 shares on Jun 15 for $43.31 a share. The transaction was completed for $324,811.
Valuation Metrics
Dave & Buster’s Entertainment Inc. (PLAY) has a trailing price-to-earnings (P/E) ratio of 12.68. Beta for the stock is 2.03. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.72, the price-to-book (PB) ratio of 4.99, and the price-to-cash flow ratio of 11.22.
Company paid $0.16 per share in dividends, remained unchanged from $0.16 last year.
Financial Health
For the three months ended July 30, Dave & Buster’s Entertainment Inc.’s quick ratio was 0.40, while its current ratio was 0.50, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending July 30 is 4.07, and the total debt to equity ratio is 4.10. As far as profitability goes, gross margin for the trailing twelve months is 84.60% percent. Dave & Buster’s Entertainment Inc.’s EBITDA margin for the year ended July 30 was 24.15%, whereas its operating margin stood at 13.50% for the same period. Based on annual data, it had gross profit of $1.66 billion and revenue of $1.96 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. PLAY’s return on assets (ROA) during the last 12 months has been 3.70%. There was a 13.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 37.90%.
Earnings Surprise
According to Dave & Buster’s Entertainment Inc.’s quarterly financial report for the quarter that ended July 30. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $542.1 million, while revenues rose by 13.6% to $597.3 million. It was predicted that Dave & Buster’s Entertainment Inc.’s quarterly earnings would be $0.6, but it ended up being $0.93, beating the consensus by -35.50%. EBITDA was $126.2 million for the quarter. At the end of Dave & Buster’s Entertainment Inc.’s most recent quarter ended July 30, its liabilities totaled 3.42 billion, while its total debt was $2.94 billion. Equity owned by shareholders amounts to $42.95 million.
Technical Picture
Here’s a quick look at Dave & Buster’s Entertainment Inc.’s (PLAY) price momentum from a technical perspective. As of 19 September, the RSI 9-day stood at 42.80%, suggesting the stock is Neutral, with a 41.86% historical volatility rate.
The stochastic %K and %D were 34.87% and 32.63% respectively, while the average true range (ATR) was 1.17. Based on the 14-day stochastic reading of 36.44%, the RSI (14) reading is 39.24%. On the 9-day MACD Oscillator, the stock is at 0.81, and the 14-day reading is at -0.34.
Analyst Ratings
Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY) was downgraded by Raymond James to a an Outperform rating in its latest research report. The stock was previously rated as a a Strong buy. Analysts have assigned Dave & Buster’s Entertainment Inc. (PLAY) an Overweight rating. PLAY is a stock that is recommended for selling by 0 brokerage firms, while 2 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 7 others recommend it as a buy.
What is PLAY’s price target for the next 12 months?
The current consensus forecast for the stock is between $40.00 and $57.00, with a median target price of $55.00. In analyzing these forecasts, the average price target given by analysts for Dave & Buster’s Entertainment Inc. (PLAY) is $51.11.
