Dave & Buster’s Entertainment Inc. [PLAY] moved down -7.27: Why It’s Important

Dave & Buster’s Entertainment Inc. [NASDAQ: PLAY] loss -7.27% or -1.33 points to close at $16.97 with a heavy trading volume of 2870360 shares. The company report on October 28, 2020 that Dave & Buster’s Announces Closing of $550 Million Senior Secured Notes Offering by its Subsidiary Dave & Buster’s, Inc..

Dave & Buster’s Entertainment, Inc., (NASDAQ:PLAY), (“Dave & Buster’s” or “the Company”), an owner and operator of entertainment and dining venues, today announced that its indirect wholly-owned subsidiary, Dave & Buster’s, Inc. (the “Issuer”), has completed its previously announced offering (the “Offering”) of $550 million in aggregate principal amount of its 7.625% senior secured notes due 2025 (the “Notes”). The notes were issued in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The Notes are guaranteed on a senior secured basis by the same subsidiaries of the Company that guarantee its Revolving Credit Facility (the “Revolving Credit Facility” and, together with a Term Loan Facility, under which all amounts outstanding were repaid with the proceeds of the Notes, the “Credit Facility”).

The Company used the proceeds from the Offering (less certain fees and expenses in connection therewith) to repay all amounts outstanding under its Term Loan Facility and to repay drawings under its Revolving Credit Facility, which, subject to the terms thereof, will be available to be drawn in the future for general corporate purposes and future liquidity. J.P. Morgan acted as lead book running manager, BofA Securities, Wells Fargo Securities, Capital One Securities, Regions Securities LLC and Truist Securities acted as additional book running managers and BBVA, Fifth Third Securities, PNC Capital Markets LLC, BMO Capital Markets, Stifel, SYNOVUS and Webster Bank acted as co-managers in connection with the Offering. Jefferies LLC acted as debt advisor to the Company.

It opened the trading session at $17.42, the shares rose to $17.69 and dropped to $16.79, the range by which the price of stock traded the whole day. The daily chart for PLAY points out that the company has recorded 15.92% gains over the past six months. However, it is still -268.11% lower than its most recent low trading price.

If we look at the average trading volume of 6.09M shares, PLAY reached to a volume of 2870360 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Dave & Buster’s Entertainment Inc. [PLAY]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PLAY shares is $20.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PLAY stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Raymond James have made an estimate for Dave & Buster’s Entertainment Inc. shares, keeping their opinion on the stock as Strong Buy, with their previous recommendation back on October 21, 2020. While these analysts kept the previous recommendation, BMO Capital Markets raised their target price from $17 to $26. The new note on the price target was released on October 20, 2020, representing the official price target for Dave & Buster’s Entertainment Inc. stock. Previously, the target price had yet another raise to $20, while Stifel analysts kept a Buy rating on PLAY stock.

The Average True Range (ATR) for Dave & Buster’s Entertainment Inc. is set at 1.22, with the Price to Sales ratio for PLAY stock in the period of the last 12 months amounting to 0.94. The Price to Book ratio for the last quarter was 3.20, with the Price to Cash per share for the same quarter was set at 4.71.

Trading performance analysis for PLAY stock

Dave & Buster’s Entertainment Inc. [PLAY] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -11.38. With this latest performance, PLAY shares gained by 11.87% in over the last four-week period, additionally plugging by 15.92% over the last 6 months – not to mention a drop of -59.22% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PLAY stock in for the last two-week period is set at 48.90, with the RSI for the last a single of trading hit 45.16, and the three-weeks RSI is set at 50.57 for Dave & Buster’s Entertainment Inc. [PLAY]. The present Moving Average for the last 50 days of trading for this stock 16.65, while it was recorded at 18.96 for the last single week of trading, and 19.39 for the last 200 days.

Dave & Buster’s Entertainment Inc. [PLAY]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Dave & Buster’s Entertainment Inc. [PLAY] shares currently have an operating margin of +12.33 and a Gross Margin at +17.46. Dave & Buster’s Entertainment Inc.’s Net Margin is presently recorded at +7.40.

Return on Total Capital for PLAY is now 11.66, given the latest momentum, and Return on Invested Capital for the company is 7.19. Return on Equity for this stock inclined to 35.97, with Return on Assets sitting at 5.50. When it comes to the capital structure of this company, Dave & Buster’s Entertainment Inc. [PLAY] has a Total Debt to Total Equity ratio set at 1,129.00. Additionally, PLAY Total Debt to Total Capital is recorded at 91.86, with Total Debt to Total Assets ending up at 80.81. Long-Term Debt to Equity for the company is recorded at 1,093.28, with the Long-Term Debt to Total Capital now at 88.96.

Reflecting on the efficiency of the workforce at the company, Dave & Buster’s Entertainment Inc. [PLAY] managed to generate an average of $6,303 per employee. Receivables Turnover for the company is 127.25 with a Total Asset Turnover recorded at a value of 0.74.Dave & Buster’s Entertainment Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 0.90.

Dave & Buster’s Entertainment Inc. [PLAY]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Dave & Buster’s Entertainment Inc. posted 0.02/share EPS, while the average EPS was predicted by analysts to be reported at 0.02/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PLAY. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Dave & Buster’s Entertainment Inc. go to 4.58%.

An analysis of insider ownership at Dave & Buster’s Entertainment Inc. [PLAY]

There are presently around $689 million, or 99.20% of PLAY stock, in the hands of institutional investors. The top three institutional holders of PLAY stocks are: BLACKROCK INC. with ownership of 7,103,120, which is approximately 56.337% of the company’s market cap and around 1.60% of the total institutional ownership; VANGUARD GROUP INC, holding 4,577,781 shares of the stock with an approximate value of $77.69 million in PLAY stocks shares; and EMINENCE CAPITAL, LP, currently with $59.38 million in PLAY stock with ownership of nearly 108.038% of the company’s market capitalization.

Positions in Dave & Buster’s Entertainment Inc. stocks held by institutional investors increased at the end of September and at the time of the September reporting period, where 112 institutional holders increased their position in Dave & Buster’s Entertainment Inc. [NASDAQ:PLAY] by around 15,020,977 shares. Additionally, 67 investors decreased positions by around 7,475,337 shares, while 16 investors held positions by with 18,124,789 shares. The mentioned changes placed institutional holdings at 40,621,103 shares, according to the latest SEC report filing. PLAY stock had 40 new institutional investments in for a total of 2,610,486 shares, while 33 institutional investors sold positions of 4,977,632 shares during the same period.

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