Lucky Strike Entertainment (NYSE:LUCK) Shares Gap Down on Disappointing Earnings

Lucky Strike Entertainment (NYSE:LUCK) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $9.57, but opened at $8.48. Lucky Strike Entertainment shares last traded at $8.15, with a volume of 153,318 shares changing hands.

The company reported $0.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.16). The firm had revenue of $339.88 million during the quarter, compared to analysts’ expectations of $361.42 million. Lucky Strike Entertainment had a negative return on equity of 35.76% and a net margin of 1.11%.

Lucky Strike Entertainment Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 23rd will be paid a $0.055 dividend. This represents a $0.22 dividend on an annualized basis and a yield of 2.51%. The ex-dividend date of this dividend is Friday, May 23rd. Lucky Strike Entertainment’s payout ratio is -2,200.00%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on LUCK shares. Canaccord Genuity Group restated a “buy” rating and issued a $16.00 target price (down previously from $18.00) on shares of Lucky Strike Entertainment in a research note on Monday. Truist Financial dropped their target price on shares of Lucky Strike Entertainment from $14.00 to $11.00 and set a “buy” rating on the stock in a report on Monday, April 14th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Lucky Strike Entertainment from $12.00 to $10.00 and set a “neutral” rating on the stock in a research report on Monday, April 14th.

Insider Activity at Lucky Strike Entertainment

In other news, Vice Chairman Brett I. Parker sold 1,747,434 shares of the firm’s stock in a transaction on Thursday, February 20th. The stock was sold at an average price of $11.54, for a total transaction of $20,165,388.36. Following the completion of the transaction, the insider now directly owns 498,092 shares in the company, valued at $5,747,981.68. This trade represents a 77.82 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John Alan Young purchased 3,685 shares of the stock in a transaction dated Monday, February 24th. The stock was bought at an average cost of $10.13 per share, with a total value of $37,329.05. Following the transaction, the director now owns 69,423 shares in the company, valued at $703,254.99. The trade was a 5.61 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders purchased a total of 6,163 shares of company stock valued at $62,213 in the last 90 days. Corporate insiders own 79.90% of the company’s stock.

Lucky Strike Entertainment Stock Performance

The stock has a market capitalization of $1.25 billion, a P/E ratio of -876.12 and a beta of 0.80. The company’s 50-day moving average is $9.29.

Lucky Strike Entertainment Company Profile

Lucky Strike Entertainment Corp. engages in operating bowling centers. It offers entertainment concepts with lounge seating, arcades, food and beverage offerings, and hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The company was founded by Thomas F.