GameStop Corp. (NYSE:GME - Get Free Report) Director Lawrence Cheng purchased 55,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was bought at an average price of $18.80 per share, with a total value of $1,034,000.00. Following the completion of the acquisition, the director owned 143,000 shares in the company, valued at $2,688,400. This represents a 62.50% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link.
GameStop Trading Down 1.5%
NYSE:GME opened at $18.86 on Wednesday. The business's 50-day moving average is $20.16 and its two-hundred day moving average is $22.04. The company has a debt-to-equity ratio of 0.71, a current ratio of 12.40 and a quick ratio of 11.91. GameStop Corp. has a 12 month low of $17.79 and a 12 month high of $28.10. The firm has a market capitalization of $8.46 billion, a PE ratio of 14.29 and a beta of 1.72.
GameStop (NYSE:GME - Get Free Report) last issued its earnings results on Tuesday, September 8th. The company reported $0.27 earnings per share for the quarter, hitting the consensus estimate of $0.27. GameStop had a return on equity of 13.75% and a net margin of 20.45%.The company had revenue of $790.20 million during the quarter, compared to the consensus estimate of $756.85 million. During the same quarter in the prior year, the business earned $0.31 earnings per share. The company's revenue was down 18.7% compared to the same quarter last year.
Analyst Upgrades and Downgrades
A number of equities analysts have weighed in on GME shares. Wall Street Zen cut GameStop from a "buy" rating to a "hold" rating in a report on Monday. Weiss Ratings reiterated a "hold (c)" rating on shares of GameStop in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Hold rating, According to MarketBeat.com, GameStop has an average rating of "Hold".
Read Our Latest Research Report on GME
Key Headlines Impacting GameStop
Here are the key news stories impacting GameStop this week:
- Positive Sentiment: GameStop reported adjusted earnings per share of $0.27, exceeding one analyst consensus estimate of $0.19 and matching another cited estimate of $0.27. Revenue of $790.2 million also topped expectations of approximately $756.8 million, supported by strong collectibles sales. GameStop beats second quarter estimates on collectibles
- Positive Sentiment: A GameStop director purchased 55,000 shares for roughly $1.03 million, increasing his direct ownership by 62.5%. The transaction may be viewed as a signal of insider confidence in the company’s valuation or future prospects. GameStop director insider purchase
- Positive Sentiment: Reports indicated that rising profit and the quarterly performance supported an improved full-year outlook, potentially providing investors with some reassurance about GameStop’s near-term earnings power. GameStop profit rises and boosts full-year outlook
- Neutral Sentiment: Investors are also watching how Chairman Ryan Cohen deploys GameStop’s multibillion-dollar cash reserves. Potential acquisitions or strategic moves, including speculation involving eBay, could materially influence the stock, but no transaction was confirmed in the provided reports. GameStop’s next big move
- Negative Sentiment: Quarterly revenue fell 18.7% year over year, from $972.2 million to $790.2 million, while EPS declined from $0.31 to $0.27. This suggests the earnings beat was not accompanied by renewed overall sales growth. GameStop quarterly earnings results
- Negative Sentiment: Analysts and commentators cautioned that collectibles growth and possible eBay-related gains may be masking continued weakness in GameStop’s traditional gaming business, raising questions about the sustainability of the turnaround. GameStop earnings preview
Institutional Inflows and Outflows
Several institutional investors have recently modified their holdings of GME. Northwestern Mutual Wealth Management Co. boosted its holdings in GameStop by 308.9% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company's stock valued at $26,000 after purchasing an additional 732 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in GameStop by 226.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company's stock worth $31,000 after purchasing an additional 886 shares during the last quarter. Advisory Services Network LLC purchased a new stake in GameStop during the 3rd quarter worth approximately $39,000. Los Angeles Capital Management LLC acquired a new position in shares of GameStop in the 4th quarter valued at approximately $39,000. Finally, Rockefeller Capital Management L.P. raised its position in shares of GameStop by 805.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 2,264 shares of the company's stock valued at $45,000 after purchasing an additional 2,014 shares in the last quarter. Institutional investors and hedge funds own 29.21% of the company's stock.
About GameStop
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Get Free Report)
GameStop Corp. (NYSE:GME) is a global specialty retailer focused on video games, gaming consoles, consumer electronics and related accessories. The company operates a network of physical retail stores alongside an e-commerce platform, offering new and pre-owned products spanning the latest game software, hardware, collectibles and lifestyle merchandise. GameStop's retail footprint is complemented by digital marketplaces for trade-ins and online purchases, as well as a membership program that provides exclusive content and rewards.
Originally founded in 1984 as Babbage's in Dallas, Texas, the company adopted the GameStop name in 1999 following its merger with Software Etc.
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