Shares of Dave and Buster's Entertainment Inc (NASDAQ:PLAY) are plummeting this morning, falling 15.7% to trade at $20.38. The restaurant and entertainment chain reported lackluster second-quarter earnings of $0.40 per share on revenue of $557.4 million, as well as disappointing same-store sales. In response, Piper Sandler, Truist Securities, and UBS all lowered their price targets.
PLAY is looking to snap a three-day win streak as it falls to its lowest levels since May. The stock is also eyeing its fourth post-earnings loss in six quarters and its worst session since December 2024. The 200-day moving average has kept a firm lid on rallies since early-August, with the shares now down 30% year to date.
Options traders have been more bearish than usual leading up to today. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10- and 50-day put/call volume ratios rank in the 85th and 99th percentiles of its annual range, respectively.
The sentiment is continuing today, with 16,000 puts traded so far compared to 9,513 calls -- six times the overall average daily options volume. The most active contracts are the September 19 and 20 puts, with new positions opening at the October 21 call. It's also worth noting that PLAY has landed on the short sell restricted (SSR) list today amid the volatility.
