Dave & Buster’s Entertainment, Inc. $PLAY Shares Sold by Clearline Capital LP

Clearline Capital LP trimmed its position in Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) by 57.8% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 683,408 shares of the restaurant operator’s stock after selling 936,556 shares during the period. Clearline Capital LP owned approximately 1.97% of Dave & Buster’s Entertainment worth $11,078,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors also recently bought and sold shares of the company. Nomura Holdings Inc. raised its holdings in shares of Dave & Buster’s Entertainment by 532.9% in the third quarter. Nomura Holdings Inc. now owns 2,411,191 shares of the restaurant operator’s stock worth $43,787,000 after buying an additional 2,030,186 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund raised its holdings in shares of Dave & Buster’s Entertainment by 40.1% in the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,515,000 shares of the restaurant operator’s stock worth $24,558,000 after buying an additional 434,000 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Dave & Buster’s Entertainment by 22.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,511,591 shares of the restaurant operator’s stock worth $24,503,000 after buying an additional 276,064 shares during the last quarter. State Street Corp raised its holdings in shares of Dave & Buster’s Entertainment by 2.6% in the fourth quarter. State Street Corp now owns 1,106,488 shares of the restaurant operator’s stock worth $17,936,000 after buying an additional 28,349 shares during the last quarter. Finally, SG Americas Securities LLC raised its holdings in shares of Dave & Buster’s Entertainment by 232.3% in the fourth quarter. SG Americas Securities LLC now owns 634,148 shares of the restaurant operator’s stock worth $10,280,000 after buying an additional 443,308 shares during the last quarter. 91.45% of the stock is currently owned by institutional investors and hedge funds.

Dave & Buster’s Entertainment Trading Down 3.1%

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

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

Key Headlines Impacting Dave & Buster’s Entertainment

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

Insider Activity

In related news, SVP Steve Klohn sold 6,989 shares of the firm’s 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 transaction, the senior vice president owned 38,547 shares of the company’s stock, valued at $566,255.43. This trade represents a 15.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.73% of the stock is currently owned by company insiders.

Analyst Ratings Changes

PLAY has been the subject of a number of research analyst reports. Piper Sandler decreased their price target 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. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Dave & Buster’s Entertainment in a report on Monday, April 20th. UBS Group decreased their price target 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. 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. Finally, 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. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $19.33.

Dave & Buster’s Entertainment Company 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.