GameStop (NYSE:GME) Sees Large Volume Increase Following Insider Buying Activity

GameStop Corp. (NYSE:GME) saw an uptick in trading volume on Monday after an insider bought additional shares in the company. 10,806,447 shares traded hands during mid-day trading, an increase of 71% from the previous session’s volume of 6,331,418 shares.The stock last traded at $24.8450 and had previously closed at $22.99.

Specifically, Director Lawrence Cheng bought 5,000 shares of the company’s stock in a transaction that occurred on Friday, January 23rd. The stock was purchased at an average price of $22.87 per share, for a total transaction of $114,350.00. Following the acquisition, the director owned 88,000 shares of the company’s stock, valued at approximately $2,012,560. This trade represents a 6.02% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Ryan Cohen purchased 500,000 shares of the business’s stock in a transaction on Tuesday, January 20th. The shares were acquired at an average price of $21.12 per share, for a total transaction of $10,560,000.00. Following the completion of the purchase, the chief executive officer directly owned 37,847,842 shares of the company’s stock, valued at approximately $799,346,423.04. This trade represents a 1.34% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In related news, Director Alain Attal acquired 12,000 shares of GameStop stock in a transaction dated Tuesday, January 20th. The shares were acquired at an average cost of $20.90 per share, for a total transaction of $250,800.00. Following the completion of the purchase, the director owned 596,464 shares in the company, valued at approximately $12,466,097.60. The trade was a 2.05% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.

Wall Street Analyst Weigh In

Separately, Weiss Ratings lowered shares of GameStop from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, January 16th. Two research analysts have rated the stock with a Sell rating, Based on data from MarketBeat.com, the company has a consensus rating of “Sell” and a consensus target price of $13.50.

GameStop Stock Performance

The stock has a 50-day moving average of $21.56 and a 200-day moving average of $22.83. The firm has a market cap of $11.03 billion, a price-to-earnings ratio of 29.77 and a beta of -1.23. The company has a debt-to-equity ratio of 0.78, a quick ratio of 9.77 and a current ratio of 10.39.

GameStop (NYSE:GME) last released its quarterly earnings results on Tuesday, December 9th. The company reported $0.24 earnings per share for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. GameStop had a return on equity of 9.75% and a net margin of 11.08%.The firm had revenue of $821.00 million during the quarter, compared to the consensus estimate of $987.29 million. During the same quarter in the prior year, the firm posted $0.06 EPS. The business’s revenue was down 4.6% on a year-over-year basis. As a group, analysts anticipate that GameStop Corp. will post 0.08 EPS for the current fiscal year.

Institutional Investors Weigh In On GameStop

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Eastern Bank bought a new stake in GameStop in the 4th quarter valued at $74,000. Swiss Life Asset Management Ltd increased its holdings in shares of GameStop by 78.2% in the third quarter. Swiss Life Asset Management Ltd now owns 19,616 shares of the company’s stock valued at $535,000 after purchasing an additional 8,606 shares during the last quarter. Danske Bank A S bought a new position in shares of GameStop in the third quarter valued at about $87,000. Advisory Services Network LLC acquired a new stake in shares of GameStop during the 3rd quarter worth about $39,000. Finally, CANADA LIFE ASSURANCE Co lifted its stake in shares of GameStop by 0.5% during the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 297,807 shares of the company’s stock worth $8,096,000 after buying an additional 1,385 shares during the last quarter. 29.21% of the stock is owned by institutional investors.

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.