GameStop (NYSE:GME) Shares Gap Up Following Strong Earnings

GameStop Corp. (NYSE:GME) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $24.25, but opened at $24.77. GameStop shares last traded at $24.37, with a volume of 2,162,433 shares changing hands.

The company reported $0.01 EPS for the quarter, topping the consensus estimate of ($0.08) by $0.09. The business had revenue of $798.30 million for the quarter, compared to analysts’ expectations of $895.67 million. GameStop had a net margin of 0.51% and a return on equity of 1.78%. The business’s quarterly revenue was down 31.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.03) EPS.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on GME shares. Wedbush lowered their target price on GameStop from $11.00 to $10.00 and set an “underperform” rating for the company in a research report on Wednesday. StockNews.com raised shares of GameStop to a “sell” rating in a research note on Wednesday.

Insider Activity at GameStop

In other news, Director Lawrence Cheng bought 4,140 shares of GameStop stock in a transaction dated Monday, July 8th. The shares were acquired at an average price of $24.85 per share, with a total value of $102,879.00. Following the completion of the purchase, the director now owns 69,228 shares in the company, valued at approximately $1,720,315.80. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. 12.28% of the stock is currently owned by insiders.

Institutional Investors Weigh In On GameStop

Institutional investors and hedge funds have recently modified their holdings of the business. AlphaMark Advisors LLC increased its stake in GameStop by 41.7% in the second quarter. AlphaMark Advisors LLC now owns 1,345 shares of the company’s stock worth $33,000 after purchasing an additional 396 shares during the period. Centerpoint Advisors LLC bought a new position in shares of GameStop in the second quarter worth about $47,000. GAMMA Investing LLC grew its holdings in shares of GameStop by 32.9% in the second quarter. GAMMA Investing LLC now owns 2,064 shares of the company’s stock worth $51,000 after purchasing an additional 511 shares during the last quarter. CWM LLC increased its stake in GameStop by 115.6% in the 2nd quarter. CWM LLC now owns 2,660 shares of the company’s stock worth $66,000 after buying an additional 1,426 shares during the period. Finally, Russell Investments Group Ltd. lifted its holdings in GameStop by 147.2% during the 1st quarter. Russell Investments Group Ltd. now owns 5,080 shares of the company’s stock valued at $65,000 after buying an additional 3,025 shares in the last quarter. 29.21% of the stock is owned by institutional investors.

GameStop Stock Down 12.0 %

The company has a market cap of $7.25 billion, a P/E ratio of 258.00 and a beta of -0.17. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.42 and a current ratio of 2.22. The business’s fifty day moving average is $23.25 and its two-hundred day moving average is $20.16.

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.