Dave & Buster's stock surged Tuesday amid heavy volume, a week after fiscal first-quarter financials, as the entertainment restaurant chain held its investor day.
PLAY shares bolted 19.2% to 46.09 Tuesday during market trade amid a big volume surge, signaling institutional interest. Dave & Buster's stock has exploded 40% in June on the back of an 18% move after the company reported earnings last week.
The advance placed shares just below a 45.51 buy point in what MarketSmith reads as a 19-week consolidation.
During the investor event Tuesday, CEO Chris Morris said PLAY plans to open new locations in North America and internationally. Morris added the company plans to upgrade locations, refresh its restaurant menus and raise some prices.
On June 6, PLAY reported mixed Q1 results, missing on revenue but topping earnings views. Dave & Buster's saw profits grow 7% to $1.45 per share with revenue increasing 32% to $597 million.
The company also announced it signed two international franchise agreements for up to 15 stores in India and up to 5 stores in Australia.
Morris last week said PLAY has repurchased $200 million of common stock in fiscal 2023, reducing shares outstanding by nearly 12%.
"We see tremendous upside as we continue to drive value creation for our stakeholders and we look forward to keeping you updated on our progress," Morris told investors.
Following earnings, Truist raised its Dave & Buster's stock price target to 63, up from 60, and maintained a "Buy" rating on the shares. BMO Capital also hiked its PLAY price target to 60, from an earlier 55. The firm kept an "Outperforming" rating on the stock.
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