Dave & Buster’s Entertainment Inc. (PLAY) shares are trading at lower $20.57 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $22.00.
To add more color to this target, the company’s high over the last year is $48.80 and the low is $4.61. Over the last 52 weeks, PLAY is down -47.75% while the S&P 500 is up 14.27%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, PLAY reported a profit of $42.15 million. Dave & Buster’s Entertainment Inc. also saw revenues increase to $50.83 million. In addition, PLAY has free cash flow of -$76.99 million as of 07-2020. The company’s EBITDA came in at -$45.95 million which compares well with its peers.
PLAY booked profit margins of -8.90%, its Return on Equity (ROE) is -40.30%, and its Return on Assets is -3.10%. All told, it is clear that, PLAY needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. PLAY has a short ratio of 1.98 and outstanding shares of 47.11M.
PLAY has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.78 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.80. Dave & Buster’s Entertainment Inc. PLAY also noted assets of $2.62 billion at the end of the last quarter. Investors should also keep an eye on sector updates as PLAY has historically followed its peers on positive news.
All told, Dave & Buster’s Entertainment Inc. PLAY has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PLAY represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Dave & Buster’s Entertainment Inc. PLAY is now commanding a market cap of 989.62M and a float of 38.11M. PLAY is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of PLAY stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in PLAY, either long or short, and we have not been compensated for this article.