GameStop (NYSE:GME) Shares Gap Up on Earnings Beat

GameStop Corp. (NYSE:GME)’s stock price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $25.40, but opened at $28.84. GameStop shares last traded at $29.06, with a volume of 17,333,027 shares.

The company reported $0.30 earnings per share for the quarter, beating analysts’ consensus estimates of $0.09 by $0.21. GameStop had a return on equity of 2.11% and a net margin of 1.45%. The firm had revenue of $1.28 billion for the quarter, compared to analysts’ expectations of $1.48 billion. During the same period in the prior year, the business posted $0.21 earnings per share. The business’s revenue was down 28.5% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on GME shares. StockNews.com upgraded shares of GameStop from a “sell” rating to a “hold” rating in a research note on Thursday. Wedbush reiterated an “underperform” rating and issued a $10.00 price target on shares of GameStop in a report on Monday.

Insider Transactions at GameStop

In other news, insider Daniel William Moore sold 895 shares of GameStop stock in a transaction dated Friday, January 3rd. The stock was sold at an average price of $31.07, for a total transaction of $27,807.65. Following the transaction, the insider now owns 31,385 shares in the company, valued at $975,131.95. The trade was a 2.77 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Mark Haymond Robinson sold 1,577 shares of the stock in a transaction that occurred on Friday, January 3rd. The stock was sold at an average price of $31.07, for a total value of $48,997.39. Following the sale, the general counsel now directly owns 42,350 shares of the company’s stock, valued at approximately $1,315,814.50. The trade was a 3.59 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 12.28% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On GameStop

Several hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its holdings in shares of GameStop by 5.5% during the fourth quarter. Vanguard Group Inc. now owns 39,144,063 shares of the company’s stock worth $1,226,775,000 after purchasing an additional 2,036,032 shares during the period. State Street Corp raised its stake in GameStop by 38.0% during the 3rd quarter. State Street Corp now owns 11,143,759 shares of the company’s stock worth $255,526,000 after buying an additional 3,070,571 shares during the period. Geode Capital Management LLC grew its position in GameStop by 6.1% in the 4th quarter. Geode Capital Management LLC now owns 6,659,234 shares of the company’s stock valued at $208,769,000 after purchasing an additional 380,554 shares during the period. Charles Schwab Investment Management Inc. raised its holdings in shares of GameStop by 3.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,610,264 shares of the company’s stock worth $113,146,000 after acquiring an additional 107,354 shares during the last quarter. Finally, Northern Trust Corp lifted its holdings in shares of GameStop by 26.2% in the fourth quarter. Northern Trust Corp now owns 3,171,303 shares of the company’s stock valued at $99,389,000 after purchasing an additional 659,345 shares in the last quarter. 29.21% of the stock is currently owned by institutional investors and hedge funds.

GameStop Trading Down 22.8 %

The stock’s fifty day simple moving average is $25.48 and its 200-day simple moving average is $25.66. The stock has a market capitalization of $9.78 billion, a PE ratio of 121.64 and a beta of -0.29.

About GameStop

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.