CastleKnight Management LP Reduces Position in Dave & Buster’s Entertainment, Inc. $PLAY

CastleKnight Management LP decreased its stake in Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) by 59.2% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 440,389 shares of the restaurant operator’s stock after selling 638,496 shares during the period. CastleKnight Management LP owned 1.27% of Dave & Buster’s Entertainment worth $7,139,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the stock. Nomura Holdings Inc. boosted its holdings in shares of Dave & Buster’s Entertainment by 532.9% in the 3rd quarter. Nomura Holdings Inc. now owns 2,411,191 shares of the restaurant operator’s stock valued at $43,787,000 after buying an additional 2,030,186 shares in the last quarter. Clearline Capital LP boosted its holdings in shares of Dave & Buster’s Entertainment by 20.4% in the 3rd quarter. Clearline Capital LP now owns 1,619,964 shares of the restaurant operator’s stock valued at $29,419,000 after buying an additional 274,541 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund boosted its holdings in shares of Dave & Buster’s Entertainment by 40.1% in the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,515,000 shares of the restaurant operator’s stock valued at $24,558,000 after buying an additional 434,000 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Dave & Buster’s Entertainment by 22.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,511,591 shares of the restaurant operator’s stock valued at $24,503,000 after buying an additional 276,064 shares in the last quarter. Finally, State Street Corp boosted its holdings in shares of Dave & Buster’s Entertainment by 2.6% in the 4th quarter. State Street Corp now owns 1,106,488 shares of the restaurant operator’s stock valued at $17,936,000 after buying an additional 28,349 shares in the last quarter. Institutional investors and hedge funds own 91.45% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. Piper Sandler lowered their target price on shares of Dave & Buster’s Entertainment from $22.00 to $14.00 and set a “neutral” rating for the company in a report on Monday, April 6th. Wall Street Zen cut shares of Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a report on Monday, April 6th. Zacks Research cut shares of Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a report on Thursday, April 2nd. BMO Capital Markets lowered their target price on shares of Dave & Buster’s Entertainment from $24.00 to $22.00 and set an “outperform” rating for the company in a report on Tuesday. Finally, UBS Group lowered their target price on shares of Dave & Buster’s Entertainment from $13.00 to $12.00 and set a “neutral” rating for the company in a report on Tuesday. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $19.33.

More Dave & Buster’s Entertainment News

Here are the key news stories impacting Dave & Buster’s Entertainment this week:

• Positive Sentiment: Some articles point to potential turnaround drivers, including new games, stronger value messaging, remodel gains, improved food sales, and tighter cash flow discipline that could help recovery later in the year. Article Title
• Positive Sentiment: One report says internal metrics are showing traction in remodeled stores and that institutional investors are accumulating shares, suggesting some market participants still see recovery potential. Article Title
• Positive Sentiment: Analysts note the stock’s steep valuation discount may appeal to bargain hunters if management can deliver a sustained improvement in traffic and margins. Article Title
• Neutral Sentiment: Management is leaning on a “back-to-basics” turnaround plan focused on restoring traffic, improving entertainment sales, and proving cash flow can support a rebound. Article Title
• Negative Sentiment: The main catalyst for the selloff is the Q1 earnings report, where Dave & Buster’s missed expectations on both profits and revenue, while comparable sales fell 5.4% and consumer demand softened. Article Title
• Negative Sentiment: Several reports highlight higher operating costs, weak comps, and estimate cuts from analysts, all of which are making investors question how quickly PLAY can recover. Article Title
• Negative Sentiment: Commentary from Benchmark and others says the disappointing quarter shows the recovery remains elusive, reinforcing the bearish tone around the stock. Article Title

Dave & Buster’s Entertainment Stock Down 3.1%

Shares of NASDAQ:PLAY opened at $11.19 on Thursday. The stock has a market cap of $389.30 million, a P/E ratio of -5.92 and a beta of 1.81. The firm has a fifty day moving average price of $11.97 and a 200 day moving average price of $14.76. The company has a debt-to-equity ratio of 15.01, a current ratio of 0.29 and a quick ratio of 0.19. Dave & Buster’s Entertainment, Inc. has a 1-year low of $9.61 and a 1-year high of $35.53.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last issued its quarterly earnings results on Monday, June 15th. The restaurant operator reported $0.22 earnings per share for the quarter, missing analysts’ consensus estimates of $0.60 by ($0.38). The business had revenue of $559.20 million for the quarter, compared to analyst estimates of $580.60 million. Dave & Buster’s Entertainment had a negative return on equity of 24.19% and a negative net margin of 3.09%.The firm’s revenue for the quarter was down 1.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.76 EPS. Sell-side analysts predict that Dave & Buster’s Entertainment, Inc. will post -0.77 EPS for the current year.

Insiders Place Their Bets

In related news, SVP Steve Klohn sold 6,989 shares of the stock in a transaction on Friday, April 17th. The shares were sold at an average price of $14.69, for a total transaction of $102,668.41. Following the completion of the sale, the senior vice president owned 38,547 shares in the company, valued at $566,255.43. This represents a 15.35% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.73% of the stock is currently owned by corporate insiders.

Dave & Buster’s Entertainment Profile

Dave & Buster’s Entertainment, Inc operates a chain of combined restaurant and entertainment venues designed to appeal to families, young adults and corporate groups. Each location features a full-service restaurant and bar alongside an arcade gaming area with ticket-based redemption, virtual reality experiences and skill-based games. Many venues also include multiple large-screen televisions and a sports bar atmosphere, catering to fans who wish to watch live sporting events in a social setting.

The company was founded in 1982 by David Corriveau and James “Buster” Corley, opening its first location in Dallas, Texas.