Gamestop Corporation (GME) Rating Lowered to Sell at Zacks Investment Research
Gamestop Corporation (NYSE:GME) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.
According to Zacks, “GameStop has underperformed the industry in the past three months due to decline in the bottom line over the past quarters. In second-quarter fiscal 2017, the company not only missed the Zacks Consensus Estimate but also witnessed 44.4% decline in earnings. Management continues to expect earnings for fiscal 2017 in the range of $3.10-$3.40 per share, compared with fiscal 2016 earnings of $3.77. However, the top line continues to improve year over year. The company sales were driven by robust demand for Nintendo Switch and Collectibles as well as strong International sales. Moreover, gains in both Technology Brands and Collectibles continue to bode well. Further, it expects to enhance collectibles business to approximately $650-$700 million during fiscal 2017 and anticipates becoming a $1 billion business by the end of fiscal 2019. In the third quarter, Collectibles sales are forecasted to increase by 30-40%.”
A number of other research analysts have also weighed in on the company. Robert W. Baird reaffirmed an “outperform” rating and set a $24.00 price objective on shares of Gamestop Corporation in a research report on Tuesday, August 29th. Vetr raised Gamestop Corporation from a “buy” rating to a “strong-buy” rating and set a $33.36 price objective for the company in a research report on Friday, September 15th. BidaskClub lowered Gamestop Corporation from a “hold” rating to a “sell” rating in a research report on Tuesday, July 25th. SunTrust Banks, Inc. reiterated a “buy” rating and set a $25.00 target price on shares of Gamestop Corporation in a research note on Tuesday, October 17th. Finally, ValuEngine upgraded Gamestop Corporation from a “hold” rating to a “buy” rating in a research note on Monday, October 2nd. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company. The stock has an average rating of “Hold” and an average target price of $25.24.
Gamestop Corporation (GME) opened at $16.19 on Monday. Gamestop Corporation has a 52-week low of $15.85 and a 52-week high of $26.84. The stock has a market capitalization of $1,641.18, a P/E ratio of 4.44, a PEG ratio of 0.33 and a beta of 1.24. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.34 and a quick ratio of 0.49.
Gamestop Corporation (NYSE:GME) last announced its earnings results on Thursday, August 24th. The company reported $0.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.16 by ($0.01). Gamestop Corporation had a return on equity of 16.66% and a net margin of 3.90%. The firm had revenue of $1.69 billion during the quarter, compared to the consensus estimate of $1.64 billion. During the same period in the prior year, the company posted $0.27 EPS. The firm’s revenue was up 3.6% on a year-over-year basis. research analysts expect that Gamestop Corporation will post 3.3 earnings per share for the current fiscal year.
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Hedge funds have recently modified their holdings of the company. Macquarie Group Ltd. bought a new stake in shares of Gamestop Corporation in the third quarter worth about $112,000. BlueMountain Capital Management LLC bought a new stake in shares of Gamestop Corporation in the second quarter worth about $162,000. LS Investment Advisors LLC increased its holdings in shares of Gamestop Corporation by 17.3% in the second quarter. LS Investment Advisors LLC now owns 8,236 shares of the company’s stock worth $178,000 after purchasing an additional 1,213 shares during the last quarter. JBF Capital Inc. increased its holdings in shares of Gamestop Corporation by 119.8% in the second quarter. JBF Capital Inc. now owns 9,120 shares of the company’s stock worth $197,000 after purchasing an additional 4,971 shares during the last quarter. Finally, Sei Investments Co. increased its holdings in shares of Gamestop Corporation by 22.4% in the second quarter. Sei Investments Co. now owns 9,431 shares of the company’s stock worth $204,000 after purchasing an additional 1,725 shares during the last quarter.
About Gamestop Corporation
GameStop Corp. is an omnichannel video game retailer. The Company sells video game hardware, physical and digital video game software, video game accessories, as well as mobile and consumer electronics products and other merchandise through its GameStop, EB Games and Micromania stores. It operates its business in five segments, which consists of four Video Game Brands segments: United States, Canada, Australia and Europe, and Technology Brands segment.
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