GameStop (NYSE:GME) Shares Gap Up on Strong Earnings

GameStop Corp. (NYSE:GME) gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $25.40, but opened at $28.84. GameStop shares last traded at $29.06, with a volume of 17,333,027 shares changing hands.

The company reported $0.30 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 2.11% and a net margin of 1.45%. The company’s revenue was down 28.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.21 EPS.

Analyst Upgrades and Downgrades

Separately, Wedbush restated an “underperform” rating and set a $10.00 price target on shares of GameStop in a research report on Monday.

Insiders Place Their Bets

In other news, General Counsel Mark Haymond Robinson sold 1,577 shares of GameStop stock in a transaction dated Friday, January 3rd. The stock was sold at an average price of $31.07, for a total value of $48,997.39. Following the transaction, the general counsel now owns 42,350 shares in the company, valued at approximately $1,315,814.50. The trade was a 3.59 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Daniel William Moore sold 895 shares of the stock in a transaction dated Friday, January 3rd. The shares were sold at an average price of $31.07, for a total value of $27,807.65. Following the sale, the insider now owns 31,385 shares of the company’s stock, valued at $975,131.95. This represents a 2.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 12.28% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in shares of GameStop by 223.5% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 990 shares of the company’s stock worth $31,000 after buying an additional 684 shares during the last quarter. New Wave Wealth Advisors LLC bought a new stake in GameStop in the fourth quarter valued at $37,000. R Squared Ltd purchased a new position in GameStop during the 4th quarter valued at $51,000. Bessemer Group Inc. raised its holdings in GameStop by 67.2% in the 4th quarter. Bessemer Group Inc. now owns 1,720 shares of the company’s stock worth $54,000 after purchasing an additional 691 shares in the last quarter. Finally, UMB Bank n.a. lifted its position in shares of GameStop by 59.9% in the 4th quarter. UMB Bank n.a. now owns 1,820 shares of the company’s stock worth $57,000 after purchasing an additional 682 shares during the period. Hedge funds and other institutional investors own 29.21% of the company’s stock.

GameStop Stock Up 15.1 %

The company has a market cap of $13.06 billion, a PE ratio of 160.64 and a beta of -0.29. The firm’s 50-day moving average is $25.59 and its 200-day moving average is $25.67.

About GameStop

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.