Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.

According to Zacks, “Dave & Buster's shares have outpaced the industry over the past year. Although estimates for the current-quarter have moved down, current-year earnings estimates have inched up over the last 60 days. The company’s unique business model with increased dependence on gaming, sets it apart and we expect the company’s entertainment business to carry the growth story forward. Consistent efforts to build sales and improve margins have also been key growth drivers. In this regard, continual opening of stores, menu innovation, launch of games, and the Fun American New Gourmet and beverage options are expected to continue boosting its top and bottom lines. In fact, the second quarter of fiscal 2017 marked the 11th successive earnings beat for the company. However, rising labor costs and a non-franchised business model might hurt profits, while a soft consumer spending environment in the U.S. restaurant space might impact comps.”

Several other research firms have also recently commented on PLAY. BidaskClub cut shares of Dave & Buster’s Entertainment from a “buy” rating to a “hold” rating in a report on Wednesday, July 19th. Jefferies Group LLC reiterated a “buy” rating and set a $80.00 price target on shares of Dave & Buster’s Entertainment in a report on Friday, July 14th. Raymond James Financial, Inc. reiterated an “outperform” rating and set a $77.00 price target on shares of Dave & Buster’s Entertainment in a report on Monday, July 24th. Maxim Group reiterated a “buy” rating and set a $78.00 price target on shares of Dave & Buster’s Entertainment in a report on Thursday, August 24th. Finally, Wells Fargo & Company reiterated an “outperform” rating and set a $71.00 price target (down previously from $78.00) on shares of Dave & Buster’s Entertainment in a report on Wednesday, September 6th. One analyst has rated the stock with a sell rating, one has issued a hold rating and ten have assigned a buy rating to the company. Dave & Buster’s Entertainment has an average rating of “Buy” and a consensus target price of $72.00.

Dave & Buster’s Entertainment (NASDAQ:PLAY) traded up 0.41% during trading on Tuesday, hitting $48.74. 456,590 shares of the stock were exchanged. The stock’s 50 day moving average price is $50.71 and its 200 day moving average price is $60.94. The stock has a market cap of $2.00 billion, a P/E ratio of 18.97 and a beta of 0.60. Dave & Buster’s Entertainment has a 12 month low of $39.15 and a 12 month high of $73.48.

Dave & Buster’s Entertainment (NASDAQ:PLAY) last announced its quarterly earnings data on Tuesday, September 5th. The restaurant operator reported $0.59 earnings per share for the quarter, beating analysts’ consensus estimates of $0.55 by $0.04. The firm had revenue of $280.80 million during the quarter, compared to analysts’ expectations of $281.69 million. Dave & Buster’s Entertainment had a net margin of 10.27% and a return on equity of 24.58%. The business’s quarterly revenue was up 14.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.50 earnings per share. Analysts forecast that Dave & Buster’s Entertainment will post $2.68 EPS for the current fiscal year.

Dave & Buster’s Entertainment declared that its Board of Directors has initiated a stock repurchase plan on Friday, September 8th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the restaurant operator to buy up to 4.7% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s management believes its stock is undervalued.

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In other news, CEO Stephen M. King sold 45,000 shares of the company’s stock in a transaction on Thursday, September 7th. The shares were sold at an average price of $49.80, for a total value of $2,241,000.00. Following the completion of the transaction, the chief executive officer now owns 22,501 shares in the company, valued at approximately $1,120,549.80. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Brian Jenkins sold 500 shares of the company’s stock in a transaction on Friday, September 8th. The shares were sold at an average price of $52.25, for a total transaction of $26,125.00. Following the completion of the transaction, the chief financial officer now owns 5,042 shares of the company’s stock, valued at approximately $263,444.50. The disclosure for this sale can be found here. In the last 90 days, insiders sold 58,000 shares of company stock valued at $2,901,075. Company insiders own 3.84% of the company’s stock.

Several institutional investors have recently modified their holdings of the company. Alps Advisors Inc. boosted its holdings in shares of Dave & Buster’s Entertainment by 0.3% in the 2nd quarter. Alps Advisors Inc. now owns 8,142 shares of the restaurant operator’s stock valued at $542,000 after buying an additional 21 shares in the last quarter. Pinebridge Investments L.P. boosted its holdings in shares of Dave & Buster’s Entertainment by 1.0% in the 2nd quarter. Pinebridge Investments L.P. now owns 4,933 shares of the restaurant operator’s stock valued at $328,000 after buying an additional 50 shares in the last quarter. Renaissance Group LLC boosted its holdings in shares of Dave & Buster’s Entertainment by 0.9% in the 2nd quarter. Renaissance Group LLC now owns 5,811 shares of the restaurant operator’s stock valued at $386,000 after buying an additional 54 shares in the last quarter. First National Bank of Omaha boosted its holdings in shares of Dave & Buster’s Entertainment by 0.3% in the 2nd quarter. First National Bank of Omaha now owns 22,735 shares of the restaurant operator’s stock valued at $1,512,000 after buying an additional 60 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its holdings in shares of Dave & Buster’s Entertainment by 0.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 13,637 shares of the restaurant operator’s stock valued at $907,000 after buying an additional 79 shares in the last quarter.

About Dave & Buster’s Entertainment

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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Analyst Recommendations for Dave & Buster`s Entertainment (NASDAQ:PLAY)

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