GameStop (NYSE:GME) Trading Up 4.9% After Insider Buying Activity

GameStop Corp. (NYSE:GME)’s stock price traded up 4.9% during mid-day trading on Wednesday after an insider bought additional shares in the company. The company traded as high as $19.89 and last traded at $19.8170. 3,390,734 shares changed hands during trading, a decline of 51% from the average session volume of 6,979,305 shares. The stock had previously closed at $18.89.

Specifically, Director Lawrence Cheng acquired 55,000 shares of the business’s stock in a transaction dated Tuesday, September 8th. The shares were purchased at an average price of $18.80 per share, for a total transaction of $1,034,000.00. Following the completion of the acquisition, the director directly owned 143,000 shares in the company, valued at $2,688,400. The trade was a 62.50% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analysts Set New Price Targets

Several analysts have weighed in on the stock. Wall Street Zen downgraded shares of GameStop from a “buy” rating to a “hold” rating in a research report on Monday. Weiss Ratings restated a “hold (c)” rating on shares of GameStop in a research note on Wednesday, July 29th. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company has an average rating of “Hold”.

Key GameStop News

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: GameStop reported adjusted EPS of $0.27, matching or exceeding consensus estimates of $0.19–$0.27 depending on the source. Revenue of $790.2 million also topped expectations of approximately $756.8 million, with collectibles providing a key source of strength. GameStop beats second-quarter estimates on collectibles
• Positive Sentiment: Director Lawrence Cheng purchased 55,000 GME shares for approximately $1.03 million at $18.80 per share, increasing his direct ownership by 62.5%. The insider purchase may signal confidence in the company’s valuation or prospects. GameStop director insider purchase
• Positive Sentiment: Reports that profit growth supported an improved full-year outlook could give investors greater confidence in GameStop’s near-term earnings power. GameStop profit rises and boosts full-year outlook
• Neutral Sentiment: Investors are watching how Chairman Ryan Cohen deploys GameStop’s multibillion-dollar cash reserves. Possible acquisitions or strategic investments, including speculation involving eBay, could significantly affect GME, but no deal was confirmed. GameStop’s next big move
• Negative Sentiment: Revenue declined 18.7% year over year to $790.2 million from $972.2 million, while EPS fell from $0.31 to $0.27. The earnings beat therefore reflects lower expectations rather than renewed sales growth. GameStop quarterly earnings results
• Negative Sentiment: Analysts have cautioned that collectibles growth and potential eBay-related gains could be masking continued weakness in GameStop’s traditional video-game business. Wall Street sentiment remains conservative, with coverage generally centered on “Hold” ratings. GameStop earnings preview

GameStop Stock Up 4.9%

The company has a current ratio of 12.40, a quick ratio of 11.91 and a debt-to-equity ratio of 0.71. The business’s 50-day simple moving average is $20.16 and its 200-day simple moving average is $22.04. The company has a market capitalization of $8.89 billion, a PE ratio of 15.01 and a beta of 1.72.

GameStop (NYSE:GME) last released its quarterly earnings data on Tuesday, September 8th. The company reported $0.27 EPS for the quarter, meeting the consensus estimate of $0.27. The business 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 revenue for the quarter was down 18.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.31 EPS.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GME. Renaissance Technologies LLC grew its holdings in GameStop by 376.2% during the first quarter. Renaissance Technologies LLC now owns 2,650,303 shares of the company’s stock worth $61,063,000 after acquiring an additional 2,093,755 shares during the period. Delta Global Management LP acquired a new position in GameStop in the first quarter valued at approximately $3,448,000. Quantinno Capital Management LP lifted its holdings in GameStop by 377.8% in the first quarter. Quantinno Capital Management LP now owns 138,846 shares of the company’s stock valued at $3,199,000 after acquiring an additional 109,788 shares during the period. Dimensional Fund Advisors LP boosted its position in GameStop by 189.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,909,284 shares of the company’s stock worth $90,046,000 after purchasing an additional 2,557,079 shares in the last quarter. Finally, California State Teachers Retirement System grew its stake in shares of GameStop by 22.5% during the 1st quarter. California State Teachers Retirement System now owns 493,286 shares of the company’s stock worth $11,365,000 after purchasing an additional 90,474 shares during the period. 29.21% of the stock is currently owned by institutional investors and hedge funds.

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.