The stock price of Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) has surged by 0.91 when compared to previous closing price of 31.85, but the company has seen a 2.85% gain in its stock price over the last five trading sessions. marketbeat.com reported 2024-09-12 that Dave & Buster’s NASDAQ: PLAY stock surged more than 10% after its Q2 earnings release because the narrative went something like this: the company is growing, but growth is weak, and expectations are missed. However, the miss was tepid, creating a “meh” reaction from the market because the margin widened, driving leverage and unexpected earnings strength.
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 11.74x compared to its average ratio. PLAY has 36-month beta value of 2.15. 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 38.55M, and currently, short sellers hold a 9.90% ratio of that float. The average trading volume of PLAY on September 19, 2024 was 1.27M shares.
PLAY’s Market Performance
The stock of Dave & Buster’s Entertainment Inc (PLAY) has seen a 2.85% increase in the past week, with a -0.83% drop in the past month, and a -22.74% fall in the past quarter. The volatility ratio for the week is 4.14%, and the volatility levels for the past 30 days are at 4.05% for PLAY. The simple moving average for the last 20 days is 2.15% for PLAY stock, with a simple moving average of -33.60% for the last 200 days.
Analysts’ Opinion of PLAY
Many brokerage firms have already submitted their reports for PLAY stocks, with Piper Sandler repeating the rating for PLAY by listing it as a “Neutral.” The predicted price for PLAY in the upcoming period, according to Piper Sandler is $71 based on the research report published on April 04, 2024 of the current year 2024.
Raymond James gave a rating of “Outperform” to PLAY, setting the target price at $55 in the report published on September 07th of the previous year.
PLAY Trading at -5.17% 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 -53.97% of loss for the given period.
Volatility was left at 4.05%, however, over the last 30 days, the volatility rate increased by 4.14%, as shares surge +0.28% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -14.79% lower at present.
During the last 5 trading sessions, PLAY rose by +2.85%, which changed the moving average for the period of 200-days by -21.69% in comparison to the 20-day moving average, which settled at $31.47. In addition, Dave & Buster’s Entertainment Inc saw -40.32% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at PLAY starting from Steve Klohn, who proposed sale 14,287 shares at the price of $31.10 back on Sep 12 ’24. After this action, Steve Klohn now owns shares of Dave & Buster’s Entertainment Inc, valued at $444,299 using the latest closing price.
Klohn Steve, the SVP Chief Information Officer of Dave & Buster’s Entertainment Inc, sale 17,512 shares at $31.13 during a trade that took place back on Sep 12 ’24, which means that Klohn Steve is holding 14,657 shares at $545,207 based on the most recent closing price.
Stock Fundamentals for PLAY
Current profitability levels for the company are sitting at:
- 0.13 for the present operating margin
- 0.58 for the gross margin
The net margin for Dave & Buster’s Entertainment Inc stands at 0.05. The total capital return value is set at 0.08. Equity return is now at value 37.64, with 2.98 for asset returns.
Based on Dave & Buster’s Entertainment Inc (PLAY), the company’s capital structure generated 0.91 points at debt to capital in total, while cash flow to debt ratio is standing at 0.13. The debt to equity ratio resting at 10.39. The interest coverage ratio of the stock is 2.44.
Currently, EBITDA for the company is 544.6 million with net debt to EBITDA at 5.65. When we switch over and look at the enterprise to sales, we see a ratio of 1.9. The receivables turnover for the company is 106.31for trailing twelve months and the total asset turnover is 0.58. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.24.
Conclusion
To put it simply, Dave & Buster’s Entertainment Inc (PLAY) has had a bad 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’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
