GameStop (NYSE:GME) Releases Quarterly Earnings Results, Meets Expectations

GameStop (NYSE:GME) released its quarterly earnings data on Tuesday. The company reported $0.27 earnings per share for the quarter, meeting the consensus estimate of $0.27, FiscalAI reports. GameStop had a net margin of 20.45% and a return on equity of 13.75%. The company had revenue of $790.20 million during the quarter, compared to analyst estimates of $756.85 million.

GameStop Stock Performance

GME stock opened at $19.39 on Tuesday. The company has a quick ratio of 11.91, a current ratio of 12.40 and a debt-to-equity ratio of 0.71. The firm has a market cap of $8.70 billion, a PE ratio of 14.64 and a beta of 1.72. The business has a 50 day moving average of $20.23 and a 200-day moving average of $22.07. GameStop has a 12-month low of $17.79 and a 12-month high of $28.10.

Insiders Place Their Bets

In other GameStop news, insider Daniel Moore sold 7,085 shares of GameStop stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $22.38, for a total value of $158,562.30. Following the sale, the insider owned 115,125 shares of the company’s stock, valued at approximately $2,576,497.50. The trade was a 5.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, General Counsel Mark Robinson sold 3,957 shares of GameStop stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $22.62, for a total transaction of $89,507.34. Following the completion of the sale, the general counsel directly owned 104,190 shares in the company, valued at $2,356,777.80. This trade represents a 3.66% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,125 shares of company stock worth $406,587 over the last quarter. 9.50% of the stock is currently owned by corporate insiders.

Institutional Trading of GameStop

A number of large investors have recently bought and sold shares of GME. Northwestern Mutual Wealth Management Co. lifted its position 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 last quarter. EverSource Wealth Advisors LLC raised its stake in GameStop by 226.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company’s stock valued at $31,000 after acquiring an additional 886 shares during the period. Los Angeles Capital Management LLC bought a new stake in GameStop in the 4th quarter valued at about $39,000. Advisory Services Network LLC bought a new stake in GameStop in the 3rd quarter valued at about $39,000. Finally, Caitong International Asset Management Co. Ltd purchased a new stake in GameStop during the fourth quarter valued at about $54,000. 29.21% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Wall Street Zen downgraded GameStop from a “buy” rating to a “hold” rating in a research note on Monday. Weiss Ratings reissued a “hold (c)” rating on shares of GameStop in a research note on Wednesday, July 29th. One analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, GameStop presently has an average rating of “Hold”.

More GameStop News

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: Revenue surpassed expectations, and GameStop reported a 20.45% net margin and 13.75% return on equity. The stronger-than-anticipated sales result provides some support for GME, although earnings were only in line with forecasts. GameStop: Fiscal Q2 Earnings Snapshot
• Positive Sentiment: Investors are focused on GameStop’s substantial cash position and how Executive Chairman Ryan Cohen may deploy the company’s multibillion-dollar war chest. A strategic investment, acquisition, or other capital-allocation move could have a larger effect on the stock than the quarterly earnings figures. GameStop’s Next Big Move Could Matter More Than Its Earnings
• Neutral Sentiment: The earnings release confirms that adjusted EPS met the FactSet estimate of $0.27 per share. Meeting expectations is unlikely to provide a major upside catalyst by itself. GameStop Earnings Flash
• Negative Sentiment: The sharp year-over-year sales decline suggests that GameStop’s traditional videogame retail operations remain challenged. Analysts had been concerned that gains from eBay-related activities could mask weakness in the underlying business, making sustainable growth a key investor concern. GameStop Earnings Preview

GameStop Company Profile

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.