GameStop (NYSE:GME) Stock Falls 6.2% – Here’s What Happened

GameStop Corp. (NYSE:GME) shares traded down 6.2% during mid-day trading on Friday. The stock traded as low as $23.83 and last traded at $23.4650. Approximately 2,003,664 shares were traded during mid-day trading, a decline of 72% from the average daily volume of 7,187,502 shares. The stock had previously closed at $25.02.

Wall Street Analysts Forecast Growth

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

GameStop Stock Down 5.7%

The company has a market capitalization of $11.90 billion, a price-to-earnings ratio of 15.50 and a beta of 1.72. The stock’s fifty day simple moving average is $20.18 and its two-hundred day simple moving average is $21.90. The company has a debt-to-equity ratio of 0.68, a current ratio of 8.72 and a quick ratio of 8.07.

GameStop (NYSE:GME) last posted its quarterly earnings results on Tuesday, September 8th. The company reported $0.27 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 during the quarter, compared to analyst estimates of $756.85 million. During the same period in the previous year, the business posted $0.31 EPS. The company’s quarterly revenue was down 18.7% on a year-over-year basis.

Insider Transactions at GameStop

In other GameStop news, General Counsel Mark Robinson sold 7,083 shares of GameStop stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $22.38, for a total value of $158,517.54. Following the completion of the transaction, the general counsel directly owned 108,147 shares in the company, valued at $2,420,329.86. The trade was a 6.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel Moore sold 7,085 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $22.38, for a total value of $158,562.30. Following the transaction, the insider directly owned 115,125 shares of the company’s stock, valued at $2,576,497.50. This trade represents a 5.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have purchased 2,228,180 shares of company stock valued at $48,312,574 and have sold 18,125 shares valued at $406,587. Insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On GameStop

Several large investors have recently added to or reduced their stakes in GME. Signal Advisors Wealth LLC boosted its stake in GameStop by 1.2% during the 1st quarter. Signal Advisors Wealth LLC now owns 63,056 shares of the company’s stock valued at $1,453,000 after purchasing an additional 724 shares during the period. Wealthfront Advisers LLC increased its position in GameStop by 3.2% in the 1st quarter. Wealthfront Advisers LLC now owns 25,935 shares of the company’s stock worth $598,000 after buying an additional 800 shares during the period. KBC Group NV lifted its holdings in shares of GameStop by 12.9% during the first quarter. KBC Group NV now owns 13,024 shares of the company’s stock worth $300,000 after buying an additional 1,489 shares during the last quarter. State of Michigan Retirement System lifted its holdings in shares of GameStop by 1.8% during the first quarter. State of Michigan Retirement System now owns 99,200 shares of the company’s stock worth $2,286,000 after buying an additional 1,800 shares during the last quarter. Finally, Kestra Advisory Services LLC boosted its position in shares of GameStop by 11.3% in the first quarter. Kestra Advisory Services LLC now owns 18,359 shares of the company’s stock valued at $423,000 after acquiring an additional 1,863 shares during the period. 29.21% of the stock is owned by institutional investors and hedge funds.

GameStop Company Profile

GameStop Corp. is a multichannel retailer specializing in video games, gaming hardware, accessories and related entertainment products. Its offerings include new and pre-owned consoles and games, controllers, headsets, collectibles, apparel, toys and trading cards. The company sells through its retail stores, e-commerce websites and other digital channels.

Founded in 1984 as Babbage’s, the company expanded through acquisitions and adopted the GameStop name in 2000. It has historically operated stores in the United States, Canada, Australia and several European markets, although its international footprint has changed over time as the company has closed or sold certain operations.