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DAVE & BUSTER'S Q2 Earnings & Insider Activities on Radar

DAVE & BUSTER'S is set to release earnings on June 10, with analysts projecting $588M in revenue and $1.00 EPS. Recent insider buying activity and mixed hedge fund engagement suggest potential stock volatility. Investors should prepare for possible market reactions based on these insights.

Date: 
AI Rating:   7

DAVE & BUSTER'S ENTERTAINMENT, Inc. ($PLAY) is approaching its quarterly earnings report, scheduled for June 10. Analysts anticipate revenue of approximately $587.9 million alongside earnings per share (EPS) of $1.00. These figures provide a baseline for evaluating the company’s performance relative to market expectations.

Insider Trading Activity: Notably, the insider trading landscape at DAVE & BUSTER'S is positively skewed. Over the past six months, there have been 6 trades by insiders, with 5 being purchases and only 1 sale. The interim CEO's significant stock purchases, totaling over $1.4 million, can be interpreted as a strong vote of confidence in the company's future prospects. Such insider buying can often lead to increased investor trust and may signal a bullish outlook for $PLAY.

Hedge Fund Activity: The hedge fund activity reflects a more mixed sentiment. In the most recent quarter, 93 institutional investors increased their holdings while 151 reduced theirs. The significant increase from the Healthcare of Ontario Pension Plan Trust Fund (+317.8% with 953,400 shares added) suggests some institutional confidence in the stock. However, the considerable decreases, particularly from big players like Eminence Capital and Ophir Asset Management, indicate that there might be underlying concerns or short-term repositioning strategies. This dichotomy in hedge fund behavior could lead to increased volatility around the earnings release.

In light of these factors, the upcoming earnings report will be crucial. A revenue of $587.9 million and EPS of $1.00 would meet market expectations but might not ignite a strong market response unless exceeded. Should DAVE & BUSTER'S report results that exceed these expectations, there could be a favorable shift in the stock price, driven by both insider confidence and institutional interest.

Stocks:  PLAY