GameStop (NYSE:GME) Shares Climb 4.4% – Still a Buy?

GameStop Corp. (NYSE:GME)’s stock price was up 4.4% during trading on Thursday. The stock traded as high as $25.73 and last traded at $25.65. Approximately 4,635,930 shares were traded during trading, a decline of 37% from the average session volume of 7,368,380 shares. The stock had previously closed at $24.58.

Wall Street Analyst Weigh In

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

GameStop Stock Performance

The company has a debt-to-equity ratio of 0.68, a quick ratio of 8.07 and a current ratio of 8.72. The stock’s 50 day moving average price is $20.84 and its 200 day moving average price is $21.98. The company has a market capitalization of $13.44 billion, a P/E ratio of 17.53 and a beta of 1.63.

GameStop (NYSE:GME) last released its earnings results on Tuesday, September 8th. The company reported $0.27 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.27. GameStop had a net margin of 25.16% and a return on equity of 13.57%. The business had revenue of $790.20 million for the quarter, compared to analyst estimates of $756.85 million. During the same quarter in the previous year, the business earned $0.31 earnings per share. GameStop’s revenue for the quarter was down 18.7% on a year-over-year basis.

Insider Buying and Selling at GameStop

In related news, CEO Ryan Cohen purchased 1,150,680 shares of the firm’s stock in a transaction on Monday, September 21st. The stock was purchased at an average cost of $22.94 per share, with a total value of $26,396,599.20. Following the completion of the purchase, the chief executive officer owned 40,498,522 shares in the company, valued at approximately $929,036,094.68. This trade represents a 2.92% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Alain Attal acquired 17,500 shares of the business’s stock in a transaction dated Monday, September 21st. The shares were bought at an average cost of $22.97 per share, for a total transaction of $401,975.00. Following the transaction, the director directly owned 618,964 shares in the company, valued at approximately $14,217,603.08. This represents a 2.91% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders purchased 3,388,642 shares of company stock valued at $76,220,115 and sold 18,475 shares valued at $452,707. Insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On GameStop

A number of hedge funds have recently added to or reduced their stakes in the company. WINTON GROUP Ltd acquired a new position in shares of GameStop during the second quarter worth approximately $5,111,000. Sterling Investment Advisors Ltd. raised its holdings in GameStop by 33.8% during the second quarter. Sterling Investment Advisors Ltd. now owns 18,316 shares of the company’s stock worth $404,000 after buying an additional 4,627 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of GameStop in the second quarter valued at $1,866,000. AlphaGrep UK Ltd bought a new position in shares of GameStop in the second quarter valued at $708,000. Finally, Public Employees Retirement System of Ohio acquired a new position in shares of GameStop during the second quarter valued at about $2,578,000. Institutional investors and hedge funds own 29.21% of the company’s stock.

GameStop Company Profile

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.