Examining the Volatility of Dave & Buster’s Entertainment Inc’s (PLAY) Stock

The stock of Dave & Buster’s Entertainment Inc (PLAY) has seen a 2.62% increase in the past week, with a -12.42% drop in the past month, and a -6.78% decrease in the past quarter. The volatility ratio for the week is 7.75%, and the volatility levels for the past 30 days are at 7.02% for PLAY. The simple moving average for the past 20 days is -8.56% for PLAY’s stock, with a -28.74% simple moving average for the past 200 days.

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 14.72x compared to its average ratio. PLAY has 36-month beta value of 2.17. Analysts have mixed views on the stock, with 5 analysts rating it as a “buy,” 1 as “overweight,” 7 as “hold,” and 0 as “sell.”

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The public float for PLAY is 37.78M, and currently, short sellers hold a 18.25% ratio of that float. The average trading volume of PLAY on December 26, 2024 was 1.63M shares.

PLAY) stock’s latest price update

The stock price of Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) has surged by 3.90 when compared to previous closing price of 28.70, but the company has seen a 2.62% gain in its stock price over the last five trading sessions. accesswire.com reported 2024-12-23 that NEW YORK, NY / ACCESSWIRE / December 23, 2024 / Levi & Korsinsky notifies investors that it has commenced an investigation of Dave & Buster’s Entertainment, Inc. (“Dave & Buster’s Entertainment, Inc.”) (NASDAQ:PLAY) concerning possible violations of federal securities laws. On December 10, 2024, Dave & Buster’s reported that “Chris Morris, the Company’s Chief Executive Officer (“CEO”), has tendered his resignation as CEO and Director to pursue other interests.

Analysts’ Opinion of PLAY

Truist, on the other hand, stated in their research note that they expect to see PLAY reach a price target of $36, previously predicting the price at $56. The rating they have provided for PLAY stocks is “Hold” according to the report published on December 11th, 2024.

Gordon Haskett gave a rating of “Hold” to PLAY, setting the target price at $34 in the report published on December 11th of the current year.

PLAY Trading at -16.14% 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 -57.29% of loss for the given period.

Volatility was left at 7.02%, however, over the last 30 days, the volatility rate increased by 7.75%, as shares sank -17.85% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -12.19% lower at present.

During the last 5 trading sessions, PLAY rose by +2.62%, which changed the moving average for the period of 200-days by -51.23% in comparison to the 20-day moving average, which settled at $32.61. In addition, Dave & Buster’s Entertainment Inc saw -44.62% 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 SHEEHAN KEVIN M, who purchase 19,025 shares at the price of $26.44 back on Dec 19 ’24. After this action, SHEEHAN KEVIN M now owns 69,025 shares of Dave & Buster’s Entertainment Inc, valued at $503,107 using the latest closing price.

Pineiro Antonio, the SVP, Chief Int’l Dev Ofc of Dave & Buster’s Entertainment Inc, purchase 1,000 shares at $27.35 during a trade that took place back on Dec 13 ’24, which means that Pineiro Antonio is holding 25,646 shares at $27,350 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
  • 0.42 for the gross margin

The net margin for Dave & Buster’s Entertainment Inc stands at 0.04. The total capital return value is set at 0.08. Equity return is now at value 38.89, with 2.23 for asset returns.

Based on Dave & Buster’s Entertainment Inc (PLAY), the company’s capital structure generated 0.88 points at debt to capital in total, while cash flow to debt ratio is standing at 0.19. The debt to equity ratio resting at 7.06. The interest coverage ratio of the stock is 2.21.

Currently, EBITDA for the company is 499.0 million with net debt to EBITDA at 3.29. When we switch over and look at the enterprise to sales, we see a ratio of 1.25. The receivables turnover for the company is 100.79for trailing twelve months and the total asset turnover is 0.56. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.29.

Conclusion

To put it simply, Dave & Buster’s Entertainment Inc (PLAY) has had a bad performance in recent times. Analysts have a mixed 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.

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