Zacks Investment Research upgraded shares of Dave & Buster’s (NASDAQ:PLAY) from a sell rating to a hold rating in a research report report published on Friday.
According to Zacks, “Dave & Buster's posted fourth-quarter fiscal 2017 results, wherein the bottom line surpassed the Zacks Consensus Estimate while the top line met the same. However, revenues increased 12.9% year over year while earnings fell 3.2%. Decrease in margin due to high operating costs might have led earnings to fall. Moreover, fourth-quarter comps declined 5.9% comparing unfavorably with 3.2% increase in the year-ago quarter. Fiscal fourth quarter operating margin declined roughly 260 basis points (bps) year over year and EBITDA margin decreased approximately 60 bps year over year. Moreover, Dave & Buster's shares have underperformed its industry in the past year. Also, rising labor costs and a non-franchised business model might have hurt profits. However, persistent focus on unit expansion along with various sales-boosting initiatives will drive the top line. Further, we expect the company’s entertainment business to driving growth.”
PLAY has been the subject of a number of other research reports. SunTrust Banks set a $70.00 target price on shares of Dave & Buster’s and gave the company a buy rating in a research note on Wednesday, March 7th. Canaccord Genuity restated a buy rating and issued a $60.00 price objective (down previously from $70.00) on shares of Dave & Buster’s in a research report on Thursday, March 29th. Maxim Group dropped their price objective on shares of Dave & Buster’s from $83.00 to $74.00 and set a buy rating for the company in a research report on Tuesday, March 27th. ValuEngine cut shares of Dave & Buster’s from a hold rating to a sell rating in a research report on Monday, April 2nd. Finally, Wells Fargo dropped their price objective on shares of Dave & Buster’s from $66.00 to $60.00 and set an outperform rating for the company in a research report on Tuesday, January 9th. Two equities research analysts have rated the stock with a sell rating, one has given a hold rating and nine have issued a buy rating to the company. Dave & Buster’s has a consensus rating of Buy and a consensus target price of $61.10.
NASDAQ:PLAY opened at $41.58 on Friday. Dave & Buster’s has a 1 year low of $37.85 and a 1 year high of $73.48. The company has a debt-to-equity ratio of 0.83, a current ratio of 0.46 and a quick ratio of 0.26. The company has a market capitalization of $1,649.31, a PE ratio of 15.99, a PEG ratio of 1.05 and a beta of 0.44.
Dave & Buster’s (NASDAQ:PLAY) last posted its earnings results on Tuesday, April 3rd. The restaurant operator reported $0.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.60 by $0.01. Dave & Buster’s had a net margin of 10.61% and a return on equity of 24.67%. The company had revenue of $304.90 million during the quarter, compared to analysts’ expectations of $304.82 million. During the same quarter in the previous year, the company posted $0.63 earnings per share. Dave & Buster’s’s quarterly revenue was up 12.8% compared to the same quarter last year. sell-side analysts anticipate that Dave & Buster’s will post 2.64 EPS for the current year.
In related news, SVP J Michael Plunkett sold 2,000 shares of the business’s stock in a transaction that occurred on Wednesday, February 7th. The shares were sold at an average price of $46.60, for a total value of $93,200.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 3.84% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. grew its holdings in Dave & Buster’s by 7.7% during the 3rd quarter. JPMorgan Chase & Co. now owns 14,690 shares of the restaurant operator’s stock worth $774,000 after acquiring an additional 1,053 shares during the period. Piedmont Investment Advisors LLC grew its holdings in Dave & Buster’s by 13.2% during the 3rd quarter. Piedmont Investment Advisors LLC now owns 9,163 shares of the restaurant operator’s stock worth $481,000 after acquiring an additional 1,068 shares during the period. Flinton Capital Management LLC grew its holdings in Dave & Buster’s by 20.8% during the 4th quarter. Flinton Capital Management LLC now owns 6,902 shares of the restaurant operator’s stock worth $381,000 after acquiring an additional 1,190 shares during the period. California Public Employees Retirement System grew its holdings in Dave & Buster’s by 6.3% during the 3rd quarter. California Public Employees Retirement System now owns 20,400 shares of the restaurant operator’s stock worth $1,071,000 after acquiring an additional 1,200 shares during the period. Finally, Renaissance Group LLC grew its holdings in Dave & Buster’s by 27.3% during the 4th quarter. Renaissance Group LLC now owns 7,401 shares of the restaurant operator’s stock worth $408,000 after acquiring an additional 1,589 shares during the period.
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About Dave & Buster’s
Dave & Buster's Entertainment, Inc owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of ?Fun American New Gourmet' entrées and appetizers, as well as a selection of non-alcoholic and alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events.
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