Bowlero (NYSE:BOWL) Shares Gap Up Following Strong Earnings

Bowlero Corp. (NYSE:BOWL) shares gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $10.38, but opened at $12.31. Bowlero shares last traded at $12.28, with a volume of 204,164 shares changing hands.

The company reported $0.13 EPS for the quarter, beating analysts’ consensus estimates of ($0.17) by $0.30. The company had revenue of $260.20 million during the quarter, compared to the consensus estimate of $249.42 million. Bowlero had a negative net margin of 6.63% and a negative return on equity of 34.55%. During the same quarter last year, the firm posted ($0.10) EPS.

Bowlero Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 6th. Shareholders of record on Friday, November 22nd will be paid a $0.055 dividend. The ex-dividend date of this dividend is Friday, November 22nd. This represents a $0.22 annualized dividend and a yield of 1.88%. Bowlero’s dividend payout ratio is -36.06%.

Wall Street Analysts Forecast Growth

BOWL has been the topic of a number of recent analyst reports. Piper Sandler assumed coverage on Bowlero in a report on Monday, October 28th. They set a “neutral” rating and a $12.00 target price on the stock. Canaccord Genuity Group reissued a “buy” rating and issued a $18.00 price objective on shares of Bowlero in a research report on Monday, September 30th. JPMorgan Chase & Co. reduced their target price on shares of Bowlero from $16.00 to $15.00 and set an “overweight” rating for the company in a report on Tuesday. Royal Bank of Canada raised shares of Bowlero to a “moderate buy” rating in a report on Thursday, October 3rd. Finally, B. Riley restated a “buy” rating and set a $17.00 price objective on shares of Bowlero in a research report on Tuesday, September 3rd. Two analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $15.88.

Institutional Investors Weigh In On Bowlero

Institutional investors have recently made changes to their positions in the stock. Russell Investments Group Ltd. acquired a new position in Bowlero in the 1st quarter valued at $1,636,000. Boston Partners increased its position in shares of Bowlero by 6.0% in the first quarter. Boston Partners now owns 3,646,113 shares of the company’s stock worth $49,004,000 after purchasing an additional 205,902 shares during the period. Champlain Investment Partners LLC raised its stake in Bowlero by 10.8% in the first quarter. Champlain Investment Partners LLC now owns 2,817,305 shares of the company’s stock valued at $38,597,000 after purchasing an additional 275,525 shares in the last quarter. Lisanti Capital Growth LLC bought a new stake in Bowlero during the second quarter worth about $2,648,000. Finally, Marshall Wace LLP lifted its position in Bowlero by 101.5% during the second quarter. Marshall Wace LLP now owns 363,784 shares of the company’s stock worth $5,271,000 after purchasing an additional 183,252 shares during the period. 68.11% of the stock is currently owned by institutional investors.

Bowlero Stock Performance

The business’s 50 day simple moving average is $11.47 and its 200-day simple moving average is $12.17.

About Bowlero

Bowlero Corp. operates bowling entertainment centers under the AMF, Bowlmor Lanes, and Bowlero brand names. The company also provides hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. It operates bowling centers in the United States, Mexico, and Canada.