GameStop (NYSE:GME) Shares Gap Up – Here’s Why

Shares of GameStop Corp. (NYSE:GME) gapped up prior to trading on Thursday . The stock had previously closed at $31.14, but opened at $32.62. GameStop shares last traded at $32.07, with a volume of 9,153,107 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on GME shares. Wedbush restated an “underperform” rating and issued a $10.00 price objective on shares of GameStop in a research report on Friday, December 6th. StockNews.com raised GameStop to a “sell” rating in a report on Saturday, October 19th.

GameStop Stock Performance

The business’s 50 day moving average is $26.42 and its 200-day moving average is $24.27. The stock has a market cap of $14.47 billion, a price-to-earnings ratio of 179.95 and a beta of -0.11.

GameStop (NYSE:GME) last issued its quarterly earnings results on Tuesday, December 10th. The company reported $0.06 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.03) by $0.09. GameStop had a net margin of 1.45% and a return on equity of 2.11%. The firm had revenue of $860.30 million for the quarter, compared to analyst estimates of $887.68 million. GameStop’s quarterly revenue was down 20.2% compared to the same quarter last year. Sell-side analysts anticipate that GameStop Corp. will post 0.01 EPS for the current fiscal year.

Insider Buying and Selling

In other GameStop news, General Counsel Mark Haymond Robinson sold 4,667 shares of the firm’s stock in a transaction on Wednesday, October 2nd. The stock was sold at an average price of $21.96, for a total value of $102,487.32. Following the completion of the sale, the general counsel now directly owns 54,927 shares of the company’s stock, valued at $1,206,196.92. This trade represents a 7.83 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Daniel William Moore sold 1,972 shares of the company’s stock in a transaction dated Wednesday, October 2nd. The shares were sold at an average price of $21.96, for a total transaction of $43,305.12. Following the completion of the sale, the insider now directly owns 37,280 shares of the company’s stock, valued at $818,668.80. This represents a 5.02 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 22,639 shares of company stock worth $481,000. 12.28% of the stock is owned by corporate insiders.

Institutional Trading of GameStop

Institutional investors have recently made changes to their positions in the company. Modera Wealth Management LLC acquired a new stake in GameStop during the second quarter worth $365,000. Centerpoint Advisors LLC acquired a new stake in shares of GameStop during the 2nd quarter worth about $47,000. Commonwealth Equity Services LLC purchased a new stake in GameStop in the 2nd quarter valued at about $261,000. Van ECK Associates Corp lifted its position in GameStop by 14.2% in the second quarter. Van ECK Associates Corp now owns 1,689,052 shares of the company’s stock valued at $41,702,000 after buying an additional 209,861 shares during the last quarter. Finally, Natixis Advisors LLC purchased a new position in GameStop during the second quarter worth about $373,000. Hedge funds and other institutional investors own 29.21% of the company’s stock.

GameStop Company Profile

GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads.