In a recent transaction, Hamish Dodds, a director at Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY), purchased 10,000 shares of the company's common stock. The shares were acquired on December 13 at a weighted average price of $27.31, totaling approximately $273,100. This acquisition increases Dodds' holdings to 39,456 shares. According to the filing, the shares were bought in multiple transactions, with prices ranging from $27.28 to $27.32.
In other recent news, Dave & Buster's Entertainment Inc. faced several significant developments. The company's third-quarter earnings for the fiscal year 2024 fell short of expectations, with Loop Capital reducing its price target to $45 from $59, despite maintaining a Buy rating. Dave & Buster's reported earnings per share (EPS) of ($0.45), lower than both Loop Capital's expectation of ($0.30) and the consensus estimate of ($0.40). The company's total revenue for the third quarter was $453 million, a 3.0% year-over-year decrease.
In addition to these financial results, the company announced the departure of CEO Chris Morris, with the current Chairman, Kevin Sheehan, stepping in as interim CEO. Loop Capital's revised price target is based on approximately 5.5 times the firm's revised fiscal year 2025 enterprise value to EBITDA estimate for Dave & Buster's. Despite the lowered target, Loop Capital's continued endorsement of a Buy rating indicates its ongoing confidence in the stock's potential.
Moreover, BMO Capital maintained its Outperform rating for the company, citing remodeling efforts and marketing optimization as potential catalysts for improved performance. However, Benchmark, Truist Securities, and William Blair have shifted their stance to a Hold rating due to strategic challenges, weaker than anticipated sales, and the sudden departure of CEO Chris Morris. These recent developments have led to heightened uncertainty for Dave & Buster's, with analysts closely watching the company's strategic initiatives and leadership changes.
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