GameStop (NYSE:GME) Stock Rating Lowered by Wall Street Zen

GameStop (NYSE:GME) was downgraded by stock analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Monday, Wall Street Zen reports.

Separately, Weiss Ratings restated a “hold (c)” rating on shares of GameStop in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the stock has an average rating of “Hold”.

GameStop Price Performance

Shares of NYSE:GME opened at $18.86 on Monday. GameStop has a fifty-two week low of $17.79 and a fifty-two week high of $28.10. The business has a 50-day simple moving average of $20.16 and a two-hundred day simple moving average of $22.04. The company has a debt-to-equity ratio of 0.71, a quick ratio of 11.91 and a current ratio of 12.40. The firm has a market cap of $8.46 billion, a price-to-earnings ratio of 14.29 and a beta of 1.72.

GameStop (NYSE:GME) last announced its quarterly earnings results on Tuesday, September 8th. The company reported $0.27 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.27. The firm had revenue of $790.20 million for the quarter, compared to the consensus estimate of $756.85 million. GameStop had a net margin of 20.45% and a return on equity of 13.75%. The business’s quarterly revenue was down 18.7% compared to the same quarter last year. During the same quarter last year, the firm posted $0.31 EPS.

Insider Buying and Selling at GameStop

In other GameStop news, insider Daniel Moore sold 7,085 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $22.38, for a total transaction of $158,562.30. Following the completion of the sale, the insider directly owned 115,125 shares in the company, valued at $2,576,497.50. The trade was a 5.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Lawrence Cheng purchased 55,000 shares of GameStop stock in a transaction dated Tuesday, September 8th. The shares were acquired at an average cost of $18.80 per share, with a total value of $1,034,000.00. Following the transaction, the director directly owned 143,000 shares in the company, valued at approximately $2,688,400. The trade was a 62.50% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold a total of 18,125 shares of company stock worth $406,587 in the last three months. 9.50% of the stock is currently owned by company insiders.

Institutional Trading of GameStop

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in GME. Northwestern Mutual Wealth Management Co. boosted its stake in shares of GameStop by 308.9% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company’s stock worth $26,000 after acquiring an additional 732 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of GameStop by 226.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company’s stock worth $31,000 after purchasing an additional 886 shares in the last quarter. Advisory Services Network LLC bought a new position in GameStop in the 3rd quarter worth $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. lifted its position in GameStop by 805.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,264 shares of the company’s stock valued at $45,000 after purchasing an additional 2,014 shares in the last quarter. 29.21% of the stock is owned by hedge funds and other institutional investors.

Key GameStop News

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: GameStop reported adjusted earnings per share of $0.27, exceeding one analyst consensus estimate of $0.19 and matching another cited estimate of $0.27. Revenue of $790.2 million also topped expectations of approximately $756.8 million, supported by strong collectibles sales. GameStop beats second quarter estimates on collectibles
• Positive Sentiment: A GameStop director purchased 55,000 shares for roughly $1.03 million, increasing his direct ownership by 62.5%. The transaction may be viewed as a signal of insider confidence in the company’s valuation or future prospects. GameStop director insider purchase
• Positive Sentiment: Reports indicated that rising profit and the quarterly performance supported an improved full-year outlook, potentially providing investors with some reassurance about GameStop’s near-term earnings power. GameStop profit rises and boosts full-year outlook
• Neutral Sentiment: Investors are also watching how Chairman Ryan Cohen deploys GameStop’s multibillion-dollar cash reserves. Potential acquisitions or strategic moves, including speculation involving eBay, could materially influence the stock, but no transaction was confirmed in the provided reports. GameStop’s next big move
• Negative Sentiment: Quarterly revenue fell 18.7% year over year, from $972.2 million to $790.2 million, while EPS declined from $0.31 to $0.27. This suggests the earnings beat was not accompanied by renewed overall sales growth. GameStop quarterly earnings results
• Negative Sentiment: Analysts and commentators cautioned that collectibles growth and possible eBay-related gains may be masking continued weakness in GameStop’s traditional gaming business, raising questions about the sustainability of the turnaround. GameStop earnings preview

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.