Dave & Buster’s Entertainment Inc (PLAY) Shares Decline Despite Market Challenges

The stock price of Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) has plunged by -3.91 when compared to previous closing price of 64.43, but the company has seen a 4.81% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-02 that Although the revenue and EPS for Dave & Buster’s (PLAY) give a sense of how its business performed in the quarter ended January 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Is It Worth Investing in Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) Right Now?

Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) has a higher price-to-earnings ratio of 22.78x compared to its average ratio. PLAY has 36-month beta value of 2.07. Analysts have mixed views on the stock, with 6 analysts rating it as a “buy,” 4 as “overweight,” 0 as “hold,” and 0 as “sell.”

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The public float for PLAY is 39.50M, and currently, short sellers hold a 11.58% ratio of that float. The average trading volume of PLAY on April 03, 2024 was 960.48K shares.

PLAY’s Market Performance

PLAY’s stock has seen a 4.81% increase for the week, with a -0.91% drop in the past month and a 14.97% gain in the past quarter. The volatility ratio for the week is 3.32%, and the volatility levels for the past 30 days are at 3.26% for Dave & Buster’s Entertainment Inc The simple moving average for the last 20 days is -0.42% for PLAY stock, with a simple moving average of 34.62% for the last 200 days.

Analysts’ Opinion of PLAY

Raymond James, on the other hand, stated in their research note that they expect to see PLAY reach a price target of $55, previously predicting the price at $60. The rating they have provided for PLAY stocks is “Outperform” according to the report published on September 07th, 2023.

Piper Sandler gave a rating of “Overweight” to PLAY, setting the target price at $56 in the report published on July 18th of the previous year.

PLAY Trading at 4.72% from the 50-Day Moving Average

After a stumble in the market that brought PLAY to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -4.75% of loss for the given period.

Volatility was left at 3.26%, however, over the last 30 days, the volatility rate increased by 3.32%, as shares surge +1.00% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +27.47% upper at present.

During the last 5 trading sessions, PLAY rose by +4.81%, which changed the moving average for the period of 200-days by +42.62% in comparison to the 20-day moving average, which settled at $62.20. In addition, Dave & Buster’s Entertainment Inc saw 14.97% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at PLAY starting from Mulleady John, who sale 7,500 shares at the price of $48.25 back on Jan 16 ’24. After this action, Mulleady John now owns 57,132 shares of Dave & Buster’s Entertainment Inc, valued at $361,860 using the latest closing price.

Mulleady John, the SVP, RE & Dev of Dave & Buster’s Entertainment Inc, sale 7,500 shares at $36.40 during a trade that took place back on Sep 15 ’23, which means that Mulleady John is holding 68,312 shares at $273,000 based on the most recent closing price.

Stock Fundamentals for PLAY

Current profitability levels for the company are sitting at:

  • 0.14 for the present operating margin
  • 0.85 for the gross margin

The net margin for Dave & Buster’s Entertainment Inc stands at 0.06. The total capital return value is set at 0.09. Equity return is now at value 45.39, with 3.52 for asset returns.

Based on Dave & Buster’s Entertainment Inc (PLAY), the company’s capital structure generated 0.93 points at debt to capital in total, while cash flow to debt ratio is standing at 0.14. The debt to equity ratio resting at 13.92. The interest coverage ratio of the stock is 2.39.

Currently, EBITDA for the company is 431.81 million with net debt to EBITDA at 5.98. When we switch over and look at the enterprise to sales, we see a ratio of 2.47. The receivables turnover for the company is 82.51for trailing twelve months and the total asset turnover is 0.59. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.37.

Conclusion

To put it simply, Dave & Buster’s Entertainment Inc (PLAY) has had a better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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