GameStop (NYSE:GME) Shares Gap Down – What’s Next?

Shares of GameStop Corp. (NYSE:GME) gapped down before the market opened on Wednesday . The stock had previously closed at $23.11, but opened at $21.57. GameStop shares last traded at $21.7050, with a volume of 4,359,004 shares.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reaffirmed a “hold (c)” rating on shares of GameStop in a research note on Thursday, December 4th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, GameStop presently has an average rating of “Reduce” and a consensus target price of $13.50.

GameStop Trading Down 5.4%

The company has a market capitalization of $9.80 billion, a PE ratio of 29.88 and a beta of -1.30. The company has a quick ratio of 10.79, a current ratio of 11.37 and a debt-to-equity ratio of 0.80. The stock’s fifty day moving average price is $22.67 and its two-hundred day moving average price is $23.92.

GameStop (NYSE:GME) last released its quarterly earnings data on Tuesday, December 9th. The company reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.04. GameStop had a return on equity of 7.72% and a net margin of 9.41%.The business had revenue of $821.00 million during the quarter, compared to analysts’ expectations of $987.29 million. During the same quarter last year, the business posted $0.06 EPS. The business’s revenue was down 4.6% on a year-over-year basis. Sell-side analysts anticipate that GameStop Corp. will post 0.08 earnings per share for the current year.

Insider Activity

In other news, General Counsel Mark Haymond Robinson sold 4,449 shares of GameStop stock in a transaction dated Thursday, October 2nd. The shares were sold at an average price of $27.58, for a total transaction of $122,703.42. Following the sale, the general counsel owned 112,302 shares of the company’s stock, valued at approximately $3,097,289.16. The trade was a 3.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Daniel William Moore sold 6,509 shares of the business’s stock in a transaction dated Thursday, October 2nd. The shares were sold at an average price of $27.58, for a total transaction of $179,518.22. Following the transaction, the insider owned 112,620 shares in the company, valued at $3,106,059.60. This represents a 5.46% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 8.58% of the company’s stock.

Institutional Trading of GameStop

Hedge funds have recently modified their holdings of the business. Swiss Life Asset Management Ltd grew its holdings in GameStop by 78.2% in the third quarter. Swiss Life Asset Management Ltd now owns 19,616 shares of the company’s stock worth $535,000 after purchasing an additional 8,606 shares during the period. Danske Bank A S bought a new position in shares of GameStop in the third quarter worth approximately $87,000. Advisory Services Network LLC purchased a new stake in shares of GameStop during the third quarter valued at approximately $39,000. CANADA LIFE ASSURANCE Co raised its holdings in GameStop by 0.5% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 297,807 shares of the company’s stock worth $8,096,000 after acquiring an additional 1,385 shares during the last quarter. Finally, Verition Fund Management LLC bought a new position in GameStop in the 3rd quarter valued at approximately $3,661,000. 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.