Dave & Buster’s Entertainment, Inc. $PLAY Shares Sold by CastleKnight Management LP

CastleKnight Management LP lessened its position in Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) by 59.2% in the 4th quarter, Holdings Channel reports. The fund owned 440,389 shares of the restaurant operator’s stock after selling 638,496 shares during the period. CastleKnight Management LP’s holdings in Dave & Buster’s Entertainment were worth $7,139,000 as of its most recent filing with the SEC.

Several other hedge funds also recently made changes to their positions in the company. Nomura Holdings Inc. lifted its stake 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 worth $43,787,000 after acquiring an additional 2,030,186 shares during the period. Clearline Capital LP lifted its stake 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 worth $29,419,000 after acquiring an additional 274,541 shares during the period. Healthcare of Ontario Pension Plan Trust Fund lifted its stake 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 worth $24,558,000 after acquiring an additional 434,000 shares during the period. Goldman Sachs Group Inc. lifted its stake 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 worth $24,503,000 after acquiring an additional 276,064 shares during the period. Finally, State Street Corp lifted its stake 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 worth $17,936,000 after acquiring an additional 28,349 shares during the period. Institutional investors and hedge funds own 91.45% of the company’s stock.

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

Dave & Buster’s Entertainment Stock Performance

Shares of PLAY opened at $11.19 on Thursday. The company has a 50-day simple moving average of $11.97 and a 200-day simple moving average of $14.76. The company has a quick ratio of 0.19, a current ratio of 0.29 and a debt-to-equity ratio of 15.01. The company has a market capitalization of $389.30 million, a PE ratio of -5.92 and a beta of 1.81. Dave & Buster’s Entertainment, Inc. has a 52-week low of $9.61 and a 52-week high of $35.53.

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

Wall Street Analyst Weigh In

PLAY has been the subject of several recent analyst reports. BMO Capital Markets reduced 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 research note on Tuesday. Zacks Research cut shares of Dave & Buster’s Entertainment from a “hold” rating to a “strong sell” rating in a research note on Thursday, April 2nd. Piper Sandler reduced 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 research note on Monday, April 6th. UBS Group reduced 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 research note on Tuesday. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Dave & Buster’s Entertainment in a research note on Monday, April 20th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $19.33.

Insider Activity

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

About Dave & Buster’s Entertainment

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.