Lawrence Cheng Acquires 55,000 Shares of GameStop (NYSE:GME) Stock

GameStop Corp. (NYSE:GME) Director Lawrence Cheng purchased 55,000 shares of the business’s stock in a transaction dated Tuesday, September 8th. The shares were purchased at an average price of $18.80 per share, for a total transaction of $1,034,000.00. Following the acquisition, the director directly owned 143,000 shares of the company’s stock, valued at $2,688,400. This trade represents a 62.50% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

GameStop Stock Up 5.9%

Shares of NYSE:GME opened at $20.00 on Thursday. The firm has a 50 day simple moving average of $20.11 and a 200 day simple moving average of $22.01. GameStop Corp. has a 52 week low of $17.79 and a 52 week high of $28.10. The company has a debt-to-equity ratio of 0.71, a quick ratio of 11.91 and a current ratio of 12.40. The company has a market cap of $8.97 billion, a PE ratio of 13.16 and a beta of 1.72.

GameStop (NYSE:GME) last posted its quarterly earnings data 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 net margin of 25.16% and a return on equity of 13.94%. The firm had revenue of $790.20 million for the quarter, compared to analysts’ expectations of $756.85 million. During the same period in the previous year, the company posted $0.31 EPS. The company’s quarterly revenue was down 18.7% compared to the same quarter last year.

Analysts Set New Price Targets

GME has been the topic of several recent analyst reports. Weiss Ratings reissued a “hold (c)” rating on shares of GameStop in a research report on Wednesday, July 29th. Wall Street Zen lowered GameStop from a “buy” rating to a “hold” rating in a research report on Monday. One investment analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold”.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. boosted its stake in shares of GameStop by 308.9% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company’s stock valued at $26,000 after buying an additional 732 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of GameStop by 226.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company’s stock worth $31,000 after acquiring an additional 886 shares during the last quarter. Advisory Services Network LLC acquired a new position in shares of GameStop in the third quarter worth $39,000. Los Angeles Capital Management LLC purchased a new stake in shares of GameStop during the fourth quarter worth $39,000. Finally, Rockefeller Capital Management L.P. raised its holdings in shares of GameStop by 805.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,264 shares of the company’s stock worth $45,000 after acquiring an additional 2,014 shares in the last quarter. Institutional investors and hedge funds own 29.21% of the company’s stock.

Trending Headlines about GameStop

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: GameStop reported adjusted EPS of $0.27, matching one consensus estimate and exceeding another estimate of $0.19. Revenue of $790.2 million also topped expectations of approximately $756.8 million, with collectibles revenue reportedly rising 57%. GameStop beats second-quarter estimates on collectibles
• Positive Sentiment: Director Lawrence Cheng purchased 55,000 GameStop shares for approximately $1.03 million at an average price of $18.80, increasing his direct ownership by 62.5%. The sizable insider purchase may signal confidence in the company’s valuation or prospects. Lawrence Cheng purchases GameStop shares
• Positive Sentiment: Trading data showed 245,499 GME call options changing hands Wednesday, 58% above the typical daily call volume of 155,655. The activity suggests increased speculative or bullish interest, although options positioning does not guarantee further gains.
• Neutral Sentiment: Some bullish commentary argues that GameStop’s collectibles business and other revenue streams could support substantial upside, while investors continue to watch how Chairman Ryan Cohen deploys the company’s large cash reserves. No acquisition or major strategic transaction was confirmed. GameStop earnings bull case
• Negative Sentiment: Quarterly revenue declined 18.7% year over year to $790.2 million from $972.2 million, while EPS fell from $0.31 to $0.27. The earnings beat therefore reflected better-than-feared performance rather than renewed overall sales growth.
• Negative Sentiment: Analysts cautioned that collectibles growth and possible non-core gains may be masking weakness in GameStop’s traditional gaming operations. Separately, Wall Street Zen downgraded the stock from “buy” to “hold,” and the broader analyst consensus remains “hold.” GameStop earnings preview

About GameStop

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.