Zacks Investment Research Upgrades Gamestop Corporation (GME) to “Buy”
Gamestop Corporation (NYSE:GME) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The firm currently has a $22.00 price target on the stock. Zacks Investment Research‘s price target points to a potential upside of 12.19% from the company’s current price.
According to Zacks, “Though GameStop shares have underperformed the industry in the past three months, the trend is likely to reverse in the near term owing to 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%. However, stiff competition, aggressive promotional strategies and waning store traffic are the headwinds with which the retail sector is grappling, and GameStop is not immune to it. Moreover, GameStop’s basic concern is the weakness prevailing in new software sales, which is heightening apprehensions about the impact of digital downloads on the same.”
A number of other equities research analysts have also weighed in on the stock. SunTrust Banks, Inc. reiterated a “buy” rating and set a $25.00 price objective on shares of Gamestop Corporation in a report on Tuesday, October 17th. ValuEngine upgraded shares of Gamestop Corporation from a “hold” rating to a “buy” rating in a report on Monday, October 2nd. Robert W. Baird reiterated a “buy” rating and set a $24.00 price objective on shares of Gamestop Corporation in a report on Tuesday, September 26th. Loop Capital reiterated a “buy” rating and set a $28.00 price objective on shares of Gamestop Corporation in a report on Wednesday, August 23rd. Finally, Oppenheimer Holdings, Inc. reiterated a “hold” rating on shares of Gamestop Corporation in a report on Friday, August 25th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the company’s stock. Gamestop Corporation presently has a consensus rating of “Buy” and an average price target of $25.24.
Shares of Gamestop Corporation (GME) traded down 1.75% during trading on Wednesday, hitting $19.61. 2,578,392 shares of the stock traded hands. The firm’s 50-day moving average price is $19.98 and its 200-day moving average price is $21.43. Gamestop Corporation has a 12 month low of $18.47 and a 12 month high of $26.84. The stock has a market cap of $1.99 billion, a PE ratio of 5.90 and a beta of 1.19.
Gamestop Corporation (NYSE:GME) last released its quarterly earnings results on Thursday, August 24th. The company reported $0.15 EPS for the quarter, missing analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $1.64 billion. During the same period in the prior year, the firm posted $0.27 earnings per share. Gamestop Corporation’s revenue for the quarter was up 3.6% on a year-over-year basis. Analysts anticipate that Gamestop Corporation will post $3.30 EPS for the current year.
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Hedge funds and other institutional investors have recently bought and sold shares of the stock. Camarda Financial Advisors LLC raised its stake in shares of Gamestop Corporation by 9.4% during the 2nd quarter. Camarda Financial Advisors LLC now owns 5,179 shares of the company’s stock worth $112,000 after acquiring an additional 447 shares in the last quarter. BlueMountain Capital Management LLC bought a new position in shares of Gamestop Corporation during the 2nd quarter worth approximately $162,000. LS Investment Advisors LLC raised its stake in shares of Gamestop Corporation by 17.3% during the 2nd quarter. LS Investment Advisors LLC now owns 8,236 shares of the company’s stock worth $178,000 after acquiring an additional 1,213 shares in the last quarter. JBF Capital Inc. raised its stake in shares of Gamestop Corporation by 119.8% during the 2nd quarter. JBF Capital Inc. now owns 9,120 shares of the company’s stock worth $197,000 after acquiring an additional 4,971 shares in the last quarter. Finally, Sei Investments Co. raised its stake in shares of Gamestop Corporation by 22.4% during the 2nd quarter. Sei Investments Co. now owns 9,431 shares of the company’s stock worth $204,000 after acquiring an additional 1,725 shares in the last quarter.
Gamestop Corporation Company Profile
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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