Dave Busters Story

PLAY -- USA Stock

USD 42.86 0.92 2.10%

Macroaxis Story

Dave Busters Ente is scheduled to announce its earnings today. The next earnings report is expected on the 10th of June 2021. As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to break down Dave Busters as a potential position. I will address why investors ignored this entity since the beginning of the current economic outlook.

Published over two weeks ago

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Will Dave Busters Ente price rise in May?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Dave Busters has an asset utilization ratio of 66.44 percent. This suggests that the company is making $0.66 for each dollar of assets. An increasing asset utilization means that Dave Busters Ente is more efficient with each dollar of assets it utilizes for everyday operations.

What is the right price you would pay to acquire a share of Dave Busters? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.

Please read more on our stock advisor page.

What is happening with Dave Busters Ente this year

Annual and quarterly reports issued by Dave Busters Ente are formal financial statements that are published yearly and quarterly and sent to Dave Busters stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as Dave Busters often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Dave Busters utilizes its cash?

To perform a cash flow analysis of Dave Busters, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Dave Busters is receiving and how much cash it distributes out in a given period. The Dave Busters cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Dave Busters Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Dave Busters reported Net Cash Flow from Operations of (49.22 Million) in 2020

Exercise or conversion by Kevin Sheehan of 5000 shares of Dave Busters subject to Rule 16b-3

Legal trades by Dave Busters insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Dave Busters insider trading alert for exercise of stock option (right to buy) by Kevin Sheehan, the corporate stakeholder, on 9th of April 2021. This event was filed by Dave Busters Entertainmen with SEC on 2021-04-09. Statement of changes in beneficial ownership - SEC Form 4 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Dave Busters Indicators

Earning per share calculations of Dave Busters is based on official Zacks consensus of 6 analysts regarding Dave Busters' future annual earnings. Given the historical accuracy of 80.05%, the future earnings per share of the company is estimated to be -4.9 with the lowest and highest values of -5.01 and -4.79, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Dave Busters a risky opportunity?

Let's check the volatility. Dave Busters is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Dave Busters (NASDAQ:PLAY) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Dave Busters stock makes you a part-owner of that company.

Dave Busters Ente Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Dave Busters Ente. The Dave Busters consensus assessment is calculated by taking the average estimates from all of the analysts covering Dave Busters

Strong Buy

Hold

Strong Sell

Strong Buy	4	40.0
Buy	0	0.0
Hold	5	50.0
Sell	0	0.0
Strong Sell	1	10.0

Dave Busters is expecting lower volatility in May

Current information ratio is at 0.18. Dave Busters Ente shows above-average downside volatility for the selected time horizon. We advise investors to inspect Dave Busters Ente further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Dave Busters future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dave Busters' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dave Busters' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Dave Busters

While other companies within the restaurants industry are still a little expensive, even after the recent corrections, Dave Busters may offer a potential longer-term growth to investors. To conclude, as of the 1st of April 2021, our final 30 days buy-or-sell advice on the company is Strong Buy. However, we believe Dave Busters is overvalued with below average probability of distress for the next two years.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Dave Busters Ente. Please refer to our Terms of Use for any information regarding our disclosure principles.

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