Why Dave & Buster's Stock Is Up Today

Dave & Buster’s Entertainment, Inc. PLAY shares are trading higher Wednesday as the stock rebounds after falling late Tuesday on worse-than-expected fourth quarter results.

The Details:

Dave & Buster's reported quarterly earnings of $1.03 per share which missed the analyst consensus estimate of $1.10, and quarterly sales came in at $599.1 million, below the analyst consensus estimate of $602.609 million.

The board increased its share repurchase authorization by an additional $100 million, bringing the total available share repurchase authorization to $200 million.

UBS analyst Dennis Geiger maintained Dave & Buster’s with a Neutral rating and raised the price target from $60 to $66, and Truist Securities maintained its Buy rating and raised the price target from $75 to $78 following the print. 

According to data from Benzinga Pro, 17.73% of available shares are being sold short which can contribute to large price moves when combined with high trading volume. 

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Is PLAY A Good Stock To Buy?

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For example, for Dave & Buster’s Entertainment, you'll notice that earnings in its last quarter contracted 6.36% source. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, Dave & Buster’s price to earnings ratio – a measure of how much an investor pays for the company's earnings – is grown 44.83% in the current quarter when compared with last year. That places it below similar businesses Vail Resorts, Planet Fitness, United Parks & Resorts in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on Dave & Buster’s quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

PLAY Price Action: According to Benzinga Pro, Dave & Buster's Entertainment shares are up 11.2% at $68.87 at the time of publication Wednesday.

Image: Courtesy of Dave & Buster’s Entertainment, Inc.