GameStop (NYSE:GME) Rating Lowered to Sell at Wall Street Zen

GameStop (NYSE:GME) was downgraded by equities researchers at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued to investors on Saturday.

Separately, Weiss Ratings raised GameStop from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, February 2nd. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, GameStop currently has an average rating of “Reduce” and an average price target of $13.50.

GameStop Stock Down 2.1%

GME opened at $22.10 on Friday. The business’s fifty day simple moving average is $23.67 and its 200 day simple moving average is $23.11. GameStop has a 52 week low of $19.93 and a 52 week high of $35.81. The company has a quick ratio of 9.77, a current ratio of 15.30 and a debt-to-equity ratio of 0.76. The stock has a market cap of $9.91 billion, a PE ratio of 29.46 and a beta of 2.12.

GameStop (NYSE:GME) last issued its quarterly earnings results on Tuesday, March 24th. The company reported $0.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.12. GameStop had a return on equity of 12.47% and a net margin of 11.53%.The firm had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.47 billion. As a group, research analysts expect that GameStop will post 0.08 earnings per share for the current fiscal year.

Insider Activity at GameStop

In related news, insider Daniel William Moore sold 5,477 shares of the firm’s stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $20.44, for a total value of $111,949.88. Following the sale, the insider directly owned 108,224 shares of the company’s stock, valued at $2,212,098.56. This trade represents a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Ryan Cohen bought 500,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 20th. The stock was acquired at an average cost 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 $799,346,423.04. The trade was a 1.34% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders bought 517,000 shares of company stock valued at $10,925,150 and sold 23,152 shares valued at $480,059. Company insiders own 8.58% of the company’s stock.

Institutional Investors Weigh In On GameStop

A number of large investors have recently made changes to their positions in GME. Marshall Wace LLP increased its stake in shares of GameStop by 347.7% during the second quarter. Marshall Wace LLP now owns 6,657,678 shares of the company’s stock valued at $162,381,000 after buying an additional 5,170,741 shares during the period. Invesco Ltd. raised its holdings in shares of GameStop by 486.6% during the second quarter. Invesco Ltd. now owns 3,858,024 shares of the company’s stock valued at $94,097,000 after acquiring an additional 3,200,321 shares in the last quarter. Norges Bank purchased a new stake in GameStop in the second quarter worth $76,701,000. Clear Street LLC purchased a new stake in GameStop in the second quarter worth $57,433,000. Finally, Van ECK Associates Corp boosted its holdings in GameStop by 58.3% in the third quarter. Van ECK Associates Corp now owns 3,098,538 shares of the company’s stock valued at $84,528,000 after acquiring an additional 1,141,215 shares in the last quarter. 29.21% of the stock is currently 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.