- 1 Dave and Busters initiated repurchase of shares during Q1 2023.
- 2 PLAY stock traded at a market price of $42.34 yesterday.
Dave and Busters Entertainment (NASDAQ: PLAY), an American restaurant and entertainment company, appears to be on fire. PLAY stock has jumped almost 50% in a week. The price closed at $42.34 yesterday, down by 2.46% since the previous close. CEO Chris Morris and the chief financial officer recently revealed company financials and forward looking statements during the recent transcript call.
Dave And Busters Working on Global Expansion
Dave and Busters generated $182 Million in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and $597 Million in revenue in Q1 2023. Chris says they are working on the overall food and beverage business. Summer remains a crucial time during the year considering people are looking to “chill” during the period.
They discussed the company’s summer campaign and global expansion plan. They recently opened a few stores in Puerto Rico, Arizona and Kentucky. Additionally, the organization is planning to open 20 stores internationally including 5 in Australia. Dave and Busters initiated a repurchase of shares during this year’s first quarter, leading to a positive momentum in PLAY stock price.
According to the earnings call transcript, the company repurchased a total of 3.5 Million shares worth $125.5 Million and additional 2.1 Million shares worth $74.5 Million during the end of Q1 2023, aggregating a total of $200 Million throughout the period.
PLAY Stock Price Analysis
The charts reveals PLAY stock has remained quite volatile for over a year. The price traded holding resistance at $46 and a support at $29 since May 2023. Dave and Busters experienced positive earnings for the last three quarters. Company shares entered consolidation following Q4 2022 reveal.
The recent earnings report sent PLAY stock price soaring from $31.39 on June 5, 2023 to $47.29 on June 13, 2013. Fib retracement shows the shares had a breakdown yesterday with price returning to 0.618 zone. Supertrend is highlighting an uphill trend. The short term moving average has crossed the 21-day moving average, supporting a positive price movement.
True strength index (TSI) has reached above the signal line while relative volatility index (RVI) is under oversold zone, both indicating potential surge in PLAY stock price. Analysts at TradingView hold a strong buy rating for the week, while forecasting the value may reach $63 at max in a year.
Other entertainment stocks saw positive change in a day with Genius Brands International (NASDAQ: GNUS) gaining almost 12%, Manchester United Plc (NYSE: MANU) gaining over 6% and Walt Disney Company (NYSE: DIS) gaining 0.53%.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.