GameStop (NYSE:GME – Get Free Report) was upgraded by research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued on Sunday, Wall Street Zen reports.
Separately, Weiss Ratings reissued a “hold (c)” rating on shares of GameStop in a research note on Wednesday, July 29th. One research analyst has rated the stock with a Hold rating, Based on data from MarketBeat, GameStop currently has an average rating of “Hold”.
Check Out Our Latest Stock Analysis on GameStop
GameStop Price Performance
GameStop (NYSE:GME – Get Free Report) last issued its earnings results on Tuesday, June 2nd. The company reported $0.30 EPS for the quarter, beating analysts’ consensus estimates of $0.16 by $0.14. The firm had revenue of $835.30 million for the quarter, compared to the consensus estimate of $766.63 million. GameStop had a return on equity of 13.75% and a net margin of 20.45%.The business’s quarterly revenue was up 14.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.17 earnings per share.
Insider Transactions at GameStop
In other GameStop news, General Counsel Mark Haymond Robinson sold 3,957 shares of the business’s stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $22.62, for a total value of $89,507.34. Following the completion of the sale, the general counsel owned 104,190 shares of the company’s stock, valued at $2,356,777.80. The trade was a 3.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel William Moore sold 7,085 shares of the company’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $22.38, for a total value of $158,562.30. Following the sale, the insider owned 115,125 shares of the company’s stock, valued at approximately $2,576,497.50. This trade represents a 5.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 18,125 shares of company stock valued at $406,587 in the last ninety days. Insiders own 9.50% of the company’s stock.
Hedge Funds Weigh In On GameStop
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. raised its position in shares of GameStop by 308.9% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company’s stock valued at $26,000 after purchasing an additional 732 shares during the period. EverSource Wealth Advisors LLC grew its stake in GameStop by 226.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company’s stock valued at $31,000 after buying an additional 886 shares during the last quarter. Advisory Services Network LLC acquired a new position in GameStop in the 3rd quarter valued at $39,000. Los Angeles Capital Management LLC bought a new position in GameStop in the 4th quarter worth $39,000. Finally, Rockefeller Capital Management L.P. raised its holdings in GameStop by 805.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 2,264 shares of the company’s stock worth $45,000 after acquiring an additional 2,014 shares during the period. Institutional investors and hedge funds own 29.21% of the company’s stock.
Key Stories Impacting GameStop
Here are the key news stories impacting GameStop this week:
- Positive Sentiment: Higher preliminary profit: GameStop expects second-quarter net income of approximately $290 million to $310 million, well above the $168.6 million reported a year earlier. The increase is largely tied to gains from its eBay equity position. GameStop Expects Higher Profit Despite Lower Sales
- Positive Sentiment: Nearly $5 billion eBay stake: GameStop held nearly $5 billion in eBay stock as of August 1, potentially transforming its pursuit of eBay from an acquisition effort into a major strategic investment and giving the retailer exposure to digital commerce. GameStop Turns eBay Pursuit Into a Nearly $5 Billion Investment
- Positive Sentiment: Lower dilution overhang: An amendment to GameStop’s convertible-note exchange will settle approximately $358.4 million in cash instead of stock, reducing the immediate risk that additional shares will dilute existing shareholders. GameStop Announces Amendment to Convertible Notes Exchange
- Neutral Sentiment: Large liquidity position: GameStop reportedly had about $5 billion in cash in addition to its eBay holdings, providing financial flexibility but also leaving investors focused on how effectively management deploys the capital. GameStop Held $5 Billion in Cash and Nearly $5 Billion in eBay Stock
- Negative Sentiment: Core revenue is declining: Second-quarter sales are expected to fall to $780 million–$800 million from $972 million a year earlier, partly because of store closures and GameStop’s exit from France. This suggests the improved earnings headline is being driven more by investments and cost reductions than by stronger retail demand. GameStop Expects Lower Quarterly Sales on Store Closures and France Exit
About GameStop
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.
Featured Articles
- Five stocks we like better than GameStop
- Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season
- Insiders Are Betting Big on These 3 Healthcare Stocks
- 3 Stocks for Investors Who Still Believe Cash Is King
- Dollar General and Dollar Tree Are Recovering, But Not for the Same Reason
Receive News & Ratings for GameStop Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GameStop and related companies with MarketBeat.com's FREE daily email newsletter.
