GameStop (NYSE:GME) Stock Sees Heavy Call Option Buying

GameStop Corp. (NYSE:GME) was the recipient of some unusual options trading on Friday. Stock traders acquired 376,897 call options on the stock. This is an increase of approximately 126% compared to the typical daily volume of 166,426 call options.

Analyst Ratings Changes

A number of research analysts recently commented on GME shares. Wall Street Zen cut GameStop from a “buy” rating to a “hold” rating in a research note on Monday, September 7th. Weiss Ratings reiterated a “hold (c)” rating on shares of GameStop in a research report on Wednesday, July 29th. One analyst has rated the stock with a Hold rating. According to data from MarketBeat.com, the stock has an average rating of “Hold”.

GameStop Price Performance

Shares of GameStop stock opened at $26.64 on Friday. GameStop has a 52-week low of $17.79 and a 52-week high of $26.88. The stock has a market capitalization of $13.44 billion, a price-to-earnings ratio of 17.53 and a beta of 1.63. The company has a fifty day moving average of $20.84 and a 200-day moving average of $21.98. The company has a debt-to-equity ratio of 0.68, a quick ratio of 8.07 and a current ratio of 8.72.

GameStop (NYSE:GME) last issued its earnings results on Tuesday, September 8th. The company reported $0.27 EPS for the quarter, hitting analysts’ consensus estimates of $0.27. The company had revenue of $790.20 million for the quarter, compared to analysts’ expectations of $756.85 million. GameStop had a net margin of 25.16% and a return on equity of 13.57%. The firm’s revenue was down 18.7% compared to the same quarter last year. During the same quarter last year, the company earned $0.31 EPS.

Insider Activity at GameStop

In other GameStop news, insider Daniel Moore sold 7,297 shares of GameStop stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $24.26, for a total transaction of $177,025.22. Following the completion of the sale, the insider directly owned 107,828 shares in the company, valued at $2,615,907.28. The trade was a 6.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Ryan Cohen purchased 1,150,680 shares of the business’s stock in a transaction on Monday, September 21st. The stock was bought at an average cost of $22.94 per share, with a total value of $26,396,599.20. Following the purchase, the chief executive officer owned 40,498,522 shares in the company, valued at approximately $929,036,094.68. This represents a 2.92% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have bought 3,388,642 shares of company stock valued at $76,220,115 and have sold 18,475 shares valued at $452,707. Company insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On GameStop

Large investors have recently bought and sold shares of the stock. Renaissance Technologies LLC raised its position in shares of GameStop by 376.2% in the 1st quarter. Renaissance Technologies LLC now owns 2,650,303 shares of the company’s stock worth $61,063,000 after purchasing an additional 2,093,755 shares during the last quarter. Delta Global Management LP purchased a new stake in GameStop during the 1st quarter valued at about $3,448,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in GameStop during the 2nd quarter valued at about $1,866,000. Quantinno Capital Management LP increased its stake in GameStop by 377.8% during the 1st quarter. Quantinno Capital Management LP now owns 138,846 shares of the company’s stock valued at $3,199,000 after purchasing an additional 109,788 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its holdings in shares of GameStop by 189.1% during the first quarter. Dimensional Fund Advisors LP now owns 3,909,284 shares of the company’s stock valued at $90,046,000 after buying an additional 2,557,079 shares during the last quarter. 29.21% of the stock is owned by hedge funds and other institutional investors.

About GameStop

GameStop Corp. is a multichannel retailer focused on video game products and related entertainment merchandise. The company sells new and pre-owned video game hardware, software, accessories and consumer electronics through its retail stores and e-commerce websites. Its product offerings include gaming consoles, controllers, headsets, games and other equipment for major platforms.

GameStop also sells collectibles, apparel, toys, trading cards and other products connected to video games and popular culture.