Shorts Pile on Ahead of Dave & Buster's Earnings

Dave & Buster's is due to report earnings on Dec. 7

facebook twitter linkedin

Dave & Buster's Entertainment, Inc. (NASDAQ:PLAY) is an American company that owns and operates venues that combine entertainment and dining in North America. Each Dave & Buster's location includes a full-service restaurant and a variety of entertainment attractions centered around playing games. At last glance, PLAY is trading up 6.4% at $32.09.

On Nov. 29, Dave & Buster's Entertainment announced that it will report its third-quarter results on Tuesday, Dec. 7, after the market closes. PLAY’s senior management team will also hold a conference call to discuss the results that same day. At this time, Wall Street analysts anticipate that Dave & Buster's Entertainment will report earnings of $0.15 in the upcoming earnings report.

Dave & Buster's stock has increased about 23.7% in price year-over-year and PLAY is up 33% since sharply bottoming at a 52-week low of $23.96 last December. On the flip side, shares of PLAY are up 6% year-to-date and Dave & Buster's stock has decreased 37% in value after soaring to its nearly two-year high of $51.73 in March -- proximal to the Center for Disease Control's relaxed guidelines regarding COVID-19 restrictions.

Short sellers have been piling on, accounting for nearly 15% of the stock's total available float. At the equity's average pace of trading, it would take these shorts a full week to buy back their bearish bets.

However, Dave & Buster's stock comes with significant risks due to its weak underlying fundamentals. PLAY currently has $1.84 billion in total debt and just $108 million in cash on its balance sheet. Nonetheless, at a price-sales ratio of 1.85, PLAY could be a high-reward investment for investors willing to take on the high risk in the short-term.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners