GameStop (NYSE:GME) Shares Down 6.7% – Here’s Why

GameStop Corp. (NYSE:GME)’s stock price dropped 6.7% on Wednesday . The company traded as low as $33.15 and last traded at $32.66. Approximately 14,701,418 shares traded hands during trading, a decline of 13% from the average daily volume of 16,876,185 shares. The stock had previously closed at $35.01.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Wedbush set a $11.50 price objective on shares of GameStop in a research note on Wednesday, March 26th. Wall Street Zen raised shares of GameStop from a “sell” rating to a “hold” rating in a research note on Thursday, March 27th.

GameStop Trading Down 5.4%

The stock has a market capitalization of $13.21 billion, a price-to-earnings ratio of 164.09 and a beta of -0.76. The stock’s 50 day moving average is $26.84 and its 200 day moving average is $27.30.

GameStop (NYSE:GME) last issued its quarterly earnings data on Tuesday, March 25th. The company reported $0.30 EPS for the quarter, beating analysts’ consensus estimates of $0.09 by $0.21. The firm had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.48 billion. GameStop had a net margin of 1.45% and a return on equity of 2.11%. The firm’s revenue was down 28.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.21 EPS. On average, sell-side analysts anticipate that GameStop Corp. will post 0.08 EPS for the current year.

Insiders Place Their Bets

In related news, Director Alain Attal acquired 10,000 shares of the business’s stock in a transaction dated Thursday, April 10th. The shares were acquired at an average cost of $25.75 per share, for a total transaction of $257,500.00. Following the acquisition, the director now directly owns 572,464 shares in the company, valued at approximately $14,740,948. The trade was a 1.78% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Ryan Cohen purchased 500,000 shares of the business’s stock in a transaction that occurred on Thursday, April 3rd. The stock was acquired at an average price of $21.55 per share, for a total transaction of $10,775,000.00. Following the acquisition, the chief executive officer now directly owns 37,347,842 shares of the company’s stock, valued at $804,845,995.10. This trade represents a 1.36% increase in their position. The disclosure for this purchase can be found here. Insiders have bought 515,000 shares of company stock valued at $11,140,200 in the last ninety days. Insiders own 12.28% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of GME. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in GameStop by 223.5% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 990 shares of the company’s stock valued at $31,000 after buying an additional 684 shares during the period. New Wave Wealth Advisors LLC acquired a new position in GameStop in the fourth quarter worth $37,000. R Squared Ltd acquired a new position in GameStop in the fourth quarter worth $51,000. Bessemer Group Inc. boosted its holdings in GameStop by 67.2% in the fourth quarter. Bessemer Group Inc. now owns 1,720 shares of the company’s stock worth $54,000 after purchasing an additional 691 shares during the period. Finally, Nomura Asset Management Co. Ltd. boosted its holdings in GameStop by 32.3% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 2,130 shares of the company’s stock worth $67,000 after purchasing an additional 520 shares during the period. Hedge funds and other institutional investors own 29.21% of the company’s stock.

GameStop Company Profile

GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads.