GameStop (NYSE:GME) Shares Gap Down – Time to Sell?

GameStop Corp. (NYSE:GME) gapped down prior to trading on Wednesday . The stock had previously closed at $30.15, but opened at $29.02. GameStop shares last traded at $28.74, with a volume of 4,296,599 shares trading hands.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Wedbush reiterated an “underperform” rating and issued a $13.50 target price on shares of GameStop in a report on Wednesday. Wall Street Zen raised shares of GameStop from a “sell” rating to a “hold” rating in a research report on Thursday, March 27th.

GameStop Stock Down 23.3%

The stock has a 50-day moving average of $27.98 and a 200 day moving average of $27.41. The company has a market capitalization of $9.79 billion, a PE ratio of 121.62 and a beta of -0.69.

GameStop (NYSE:GME) last released its earnings results on Tuesday, June 10th. The company reported $0.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.04 by $0.13. GameStop had a net margin of 1.45% and a return on equity of 2.11%. The firm had revenue of $732.40 million during the quarter, compared to the consensus estimate of $754.23 million. During the same period in the prior year, the firm earned ($0.12) EPS. The company’s revenue was down 16.9% compared to the same quarter last year. Equities analysts forecast that GameStop Corp. will post 0.08 EPS for the current fiscal year.

Insider Buying and Selling at GameStop

In other news, CEO Ryan Cohen acquired 500,000 shares of the stock in a transaction that occurred on Thursday, April 3rd. The shares were acquired at an average cost of $21.55 per share, for a total transaction of $10,775,000.00. Following the purchase, the chief executive officer now owns 37,347,842 shares of the company’s stock, valued at approximately $804,845,995.10. The trade was a 1.36% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Lawrence Cheng bought 5,000 shares of GameStop stock in a transaction dated Thursday, April 3rd. The stock was acquired at an average price of $21.54 per share, with a total value of $107,700.00. Following the purchase, the director now directly owns 83,000 shares of the company’s stock, valued at approximately $1,787,820. This represents a 6.41% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last ninety days, insiders bought 515,000 shares of company stock valued at $11,140,200. Company insiders own 12.28% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Bayforest Capital Ltd raised its position in shares of GameStop by 654.6% in the first quarter. Bayforest Capital Ltd now owns 15,212 shares of the company’s stock worth $340,000 after buying an additional 13,196 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in GameStop by 9.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,131,481 shares of the company’s stock worth $25,255,000 after acquiring an additional 94,892 shares during the last quarter. United Services Automobile Association raised its holdings in shares of GameStop by 4.1% in the 1st quarter. United Services Automobile Association now owns 26,202 shares of the company’s stock valued at $569,000 after acquiring an additional 1,044 shares in the last quarter. Goldman Sachs Group Inc. boosted its position in shares of GameStop by 33.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 262,143 shares of the company’s stock valued at $5,851,000 after acquiring an additional 65,325 shares during the last quarter. Finally, AQR Capital Management LLC boosted its position in shares of GameStop by 312.2% during the 1st quarter. AQR Capital Management LLC now owns 29,438 shares of the company’s stock valued at $623,000 after acquiring an additional 22,297 shares during the last quarter. 29.21% of the stock is owned by institutional investors.

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.