GameStop (NYSE:GME) Rating Lowered to “Sell” at Wall Street Zen

GameStop (NYSE:GME) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a note issued to investors on Saturday.

Separately, Weiss Ratings raised shares of GameStop from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, February 2nd. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus target price of $13.50.

GameStop Stock Performance

GME opened at $22.10 on Friday. The company has a debt-to-equity ratio of 0.76, a quick ratio of 14.68 and a current ratio of 15.30. GameStop has a 52-week low of $19.93 and a 52-week high of $35.81. The firm has a market cap of $9.91 billion, a P/E ratio of 29.46 and a beta of 2.12. The business’s fifty day moving average is $23.67 and its 200-day moving average is $23.10.

GameStop (NYSE:GME) last posted its quarterly earnings results on Tuesday, March 24th. The company reported $0.49 EPS for the quarter, beating analysts’ consensus estimates of $0.37 by $0.12. GameStop had a return on equity of 12.47% and a net margin of 11.53%.The business had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.47 billion. Sell-side analysts expect that GameStop will post 0.08 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Daniel William Moore sold 5,477 shares of the firm’s stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $20.44, for a total value of $111,949.88. Following the sale, the insider directly owned 108,224 shares of the company’s stock, valued at $2,212,098.56. This trade represents a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Ryan Cohen bought 500,000 shares of the firm’s stock in a transaction on Tuesday, January 20th. The stock was acquired at an average price of $21.12 per share, for a total transaction of $10,560,000.00. Following the transaction, the chief executive officer owned 37,847,842 shares of the company’s stock, valued at approximately $799,346,423.04. The trade was a 1.34% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders have purchased 517,000 shares of company stock worth $10,925,150 and have sold 23,152 shares worth $480,059. 8.58% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in GME. Northwestern Mutual Wealth Management Co. grew its holdings 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 purchasing an additional 732 shares during the last quarter. City Holding Co. bought a new position in GameStop in the 3rd quarter valued at approximately $30,000. EverSource Wealth Advisors LLC lifted 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 purchasing an additional 886 shares during the last quarter. Advisory Services Network LLC acquired a new stake in GameStop in the third quarter valued at approximately $39,000. Finally, Los Angeles Capital Management LLC bought a new stake in shares of GameStop during the fourth quarter worth $39,000. Institutional investors own 29.21% of the company’s stock.

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.