GameStop (NYSE:GME) Shares Gap Up – Should You Buy?

GameStop Corp. (NYSE:GME)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $20.66, but opened at $21.65. GameStop shares last traded at $21.68, with a volume of 2,481,550 shares trading hands.

Key Stories Impacting GameStop

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: Board grants Ryan Cohen a long‑term, performance‑based award that vests only if GameStop reaches a $100B market cap and $10B in cumulative core profit — a high‑risk/high‑reward incentive that investors interpret as aligning management with aggressive upside, driving buying interest. GameStop announces new stock option award for CEO Cohen
• Neutral Sentiment: Analysis notes the company’s risk profile has shifted from “melting ice cube” to an execution‑driven outcome under Cohen — downside appears limited by a cash‑rich balance sheet and positive cash flow, but material upside depends on a transformation that has not yet been fully articulated. GameStop: From Melting Ice Cube To A Directional Bet On Cohen’s Incentives
• Negative Sentiment: Ongoing store closures (a North Dartmouth location recently closed as part of hundreds nationwide) underscore continued structural pressure on GameStop’s physical retail footprint, reminding investors that execution risk and secular retail headwinds remain. GameStop location in North Dartmouth closes, joining hundreds nationwide
• Negative Sentiment: Insider selling by senior executives (General Counsel disclosed a sale of ~5,475 shares) can be read as a neutral/negative governance signal to some investors, adding short‑term selling pressure or caution despite the bullish CEO award. GameStop (NYSE:GME) General Counsel Sells $111,909.00 in Stock

Analyst Ratings Changes

Separately, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of GameStop in a research note on Monday, December 29th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average target price of $13.50.

GameStop Price Performance

The business has a 50-day moving average price of $21.57 and a two-hundred day moving average price of $22.98. The company has a quick ratio of 9.77, a current ratio of 10.39 and a debt-to-equity ratio of 0.78. The company has a market capitalization of $9.58 billion, a price-to-earnings ratio of 26.08 and a beta of -1.23.

GameStop (NYSE:GME) last announced its quarterly earnings results on Tuesday, December 9th. The company reported $0.24 EPS for the quarter, beating analysts’ consensus estimates of $0.20 by $0.04. GameStop had a net margin of 11.08% and a return on equity of 9.75%. The business had revenue of $821.00 million during the quarter, compared to analyst estimates of $987.29 million. During the same quarter in the previous year, the business posted $0.06 EPS. GameStop’s quarterly revenue was down 4.6% on a year-over-year basis. As a group, research analysts anticipate that GameStop Corp. will post 0.08 EPS for the current year.

Insider Activity

In related news, General Counsel Mark Haymond Robinson sold 5,475 shares of the company’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $20.44, for a total value of $111,909.00. Following the sale, the general counsel owned 117,355 shares in the company, valued at $2,398,736.20. This represents a 4.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Daniel William Moore sold 5,477 shares of the firm’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $20.44, for a total transaction of $111,949.88. Following the completion of the transaction, the insider directly owned 108,224 shares in the company, valued at approximately $2,212,098.56. The trade was a 4.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 8.58% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC raised its position in GameStop by 312.2% in the 1st quarter. AQR Capital Management LLC now owns 29,438 shares of the company’s stock valued at $623,000 after buying an additional 22,297 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of GameStop by 33.2% in the 1st quarter. Goldman Sachs Group Inc. now owns 262,143 shares of the company’s stock worth $5,851,000 after acquiring an additional 65,325 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of GameStop by 9.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,131,481 shares of the company’s stock valued at $25,255,000 after purchasing an additional 94,892 shares during the last quarter. Bayforest Capital Ltd lifted its position in shares of GameStop by 654.6% during the first quarter. Bayforest Capital Ltd now owns 15,212 shares of the company’s stock valued at $340,000 after purchasing an additional 13,196 shares in the last quarter. Finally, Voya Investment Management LLC boosted its holdings in GameStop by 28.8% during the first quarter. Voya Investment Management LLC now owns 179,896 shares of the company’s stock worth $4,015,000 after purchasing an additional 40,238 shares during the last quarter. Hedge funds and other institutional investors own 29.21% of the company’s stock.

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.