Lucky Strike Entertainment (NYSE:LUCK) Shares Gap Down After Earnings Miss

Lucky Strike Entertainment (NYSE:LUCK)’s stock price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $4.42, but opened at $3.66. Lucky Strike Entertainment shares last traded at $3.8260, with a volume of 888 shares traded.

The company reported ($0.21) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.10). The business had revenue of $302.64 million during the quarter, compared to the consensus estimate of $297.79 million.

Lucky Strike Entertainment Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 22nd. Investors of record on Tuesday, September 8th were given a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a yield of 6.3%. The ex-dividend date was Tuesday, September 8th. Lucky Strike Entertainment’s dividend payout ratio is currently -70.59%.

Key Lucky Strike Entertainment News

Here are the key news stories impacting Lucky Strike Entertainment this week:

• Positive Sentiment: Lucky Strike reaffirmed its fiscal 2027 EBITDA guidance of $340 million to $360 million and said it is targeting about $100 million in debt reduction. Lucky Strike reaffirms fiscal 2027 EBITDA guidance and debt-reduction target
• Neutral Sentiment: Fiscal Q1 revenue was $302.64 million, above analysts’ $297.79 million estimate, though the beat was modest. The company also issued fiscal 2027 revenue guidance of about $1.3 billion, in line with consensus. Lucky Strike reports first-quarter results
• Negative Sentiment: The company lost $0.21 per share, worse than the $0.11 loss analysts expected and the $0.12 loss a year earlier. The earnings miss, alongside the suspension of its dividend, appears to be weighing on investor sentiment; suspending the payout also removes a source of shareholder income. Lucky Strike reports Q1 loss, beats revenue estimates Lucky Strike after dividend suspension

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Lucky Strike Entertainment in a research note on Thursday, October 29th. Jefferies Financial Group set a $10.00 price objective on shares of Lucky Strike Entertainment in a research note on Thursday, August 27th. Stifel Nicolaus dropped their target price on Lucky Strike Entertainment from $9.00 to $8.00 and set a “buy” rating on the stock in a report on Friday, August 28th. Roth Capital set a $6.50 target price on Lucky Strike Entertainment in a research report on Friday, August 28th. Finally, Zacks Research raised Lucky Strike Entertainment from a “strong sell” rating to a “hold” rating in a research note on Monday, October 26th. Four research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $8.17.

Insider Transactions at Lucky Strike Entertainment

In other Lucky Strike Entertainment news, CEO Thomas Shannon purchased 30,000 shares of the business’s stock in a transaction on Wednesday, September 9th. The stock was bought at an average cost of $5.86 per share, with a total value of $175,800.00. Following the acquisition, the chief executive officer owned 3,144,000 shares of the company’s stock, valued at $18,423,840. The trade was a 0.96% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Sandeep Mathrani acquired 9,350 shares of Lucky Strike Entertainment stock in a transaction dated Friday, August 28th. The shares were acquired at an average price of $6.41 per share, with a total value of $59,933.50. Following the transaction, the director owned 9,350 shares in the company, valued at approximately $59,933.50. This represents a ∞ increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired a total of 43,537 shares of company stock valued at $261,064 over the last three months. 84.20% of the stock is owned by corporate insiders.

Institutional Trading of Lucky Strike Entertainment

Large investors have recently added to or reduced their stakes in the business. Great Lakes Advisors LLC bought a new position in shares of Lucky Strike Entertainment in the second quarter valued at $1,361,000. Rice Hall James & Associates LLC lifted its position in shares of Lucky Strike Entertainment by 52.7% during the 1st quarter. Rice Hall James & Associates LLC now owns 481,189 shares of the company’s stock valued at $4,003,000 after acquiring an additional 166,104 shares during the last quarter. Finally, Squarepoint Ops LLC boosted its stake in shares of Lucky Strike Entertainment by 69.8% during the 2nd quarter. Squarepoint Ops LLC now owns 22,158 shares of the company’s stock worth $166,000 after acquiring an additional 9,112 shares in the last quarter. 68.11% of the stock is currently owned by institutional investors.

Lucky Strike Entertainment Stock Performance

The firm has a market capitalization of $521.46 million, a P/E ratio of -11.25 and a beta of 0.71. The firm has a 50 day moving average price of $5.17 and a two-hundred day moving average price of $7.18.

About Lucky Strike Entertainment

Lucky Strike Entertainment Corp. is an operator of location-based entertainment venues centered on bowling. The company provides recreational and social experiences through bowling lanes, arcade games, food and beverage offerings, and spaces for parties, corporate events and other group gatherings.

The company operates venues under brands that include Lucky Strike, Bowlero and AMF, serving customers across the United States and Canada. Its locations range from upscale entertainment venues to traditional bowling centers, with offerings designed for families, casual visitors, league bowlers and private-event guests.

Lucky Strike Entertainment was previously known as Bowlero Corp.