GameStop (NYSE:GME) Shares Gap Up Following Better-Than-Expected Earnings

GameStop Corp. (NYSE:GME) shares gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $20.92, but opened at $23.28. GameStop shares last traded at $22.55, with a volume of 6,297,051 shares traded.

The company reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.14. The business had revenue of $835.30 million during the quarter, compared to analysts’ expectations of $766.64 million. GameStop had a return on equity of 12.47% and a net margin of 11.53%.The business’s quarterly revenue was up 14.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.17 EPS.

Key Stories Impacting GameStop

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: GameStop reported first-quarter EPS of $0.30, easily topping analyst estimates, while revenue rose 14% year over year to $835.3 million, also above expectations. GameStop Discloses First Quarter 2026 Results
• Positive Sentiment: The company said net income reached a record $389.6 million and operating income hit an all-time first-quarter high, reinforcing the view that profitability is improving materially. GameStop Discloses First Quarter 2026 Results
• Positive Sentiment: GameStop’s board approved a new $2 billion share repurchase program through 2029, which could boost earnings per share and signals management confidence in the company’s outlook. GameStop reports 14% rise in quarterly revenue, unveils $2 billion share buyback
• Positive Sentiment: Multiple market reports noted the stock was rallying in after-hours and premarket trading after the earnings beat and buyback announcement, suggesting traders are reacting favorably to the update. GameStop Stock Jumps After Q1 Double Beat, $2 Billion Buyback Authorization

Wall Street Analyst Weigh In

Several research firms have recently issued reports on GME. Wall Street Zen cut GameStop from a “hold” rating to a “sell” rating in a research report on Saturday, March 28th. Weiss Ratings raised GameStop from a “hold (c-)” rating to a “hold (c)” rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $13.50.

Insider Buying and Selling

In other GameStop news, insider Daniel William Moore sold 7,210 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $22.94, for a total transaction of $165,397.40. Following the completion of the sale, the insider directly owned 101,014 shares of the company’s stock, valued at approximately $2,317,261.16. This trade represents a 6.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, General Counsel Mark Haymond Robinson sold 3,912 shares of the stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $23.19, for a total value of $90,719.28. Following the sale, the general counsel directly owned 115,230 shares of the company’s stock, valued at $2,672,183.70. The trade was a 3.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 18,331 shares of company stock valued at $421,491 over the last ninety days. 9.50% of the stock is owned by insiders.

Hedge Funds Weigh In On GameStop

A number of large investors have recently modified their holdings of GME. AQR Capital Management LLC raised its stake in shares of GameStop by 312.2% during the 1st quarter. AQR Capital Management LLC now owns 29,438 shares of the company’s stock worth $623,000 after buying an additional 22,297 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in shares of GameStop by 33.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 262,143 shares of the company’s stock worth $5,851,000 after buying an additional 65,325 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of GameStop by 9.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,131,481 shares of the company’s stock worth $25,255,000 after buying an additional 94,892 shares in the last quarter. American Century Companies Inc. raised its stake in shares of GameStop by 6.5% during the 2nd quarter. American Century Companies Inc. now owns 35,473 shares of the company’s stock worth $865,000 after buying an additional 2,162 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its stake in shares of GameStop by 226.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company’s stock worth $31,000 after buying an additional 886 shares in the last quarter. 29.21% of the stock is owned by hedge funds and other institutional investors.

GameStop Trading Up 7.8%

The firm has a market capitalization of $10.12 billion, a PE ratio of 30.07 and a beta of 1.77. The business has a 50 day moving average price of $23.25 and a 200-day moving average price of $22.82. The company has a current ratio of 15.30, a quick ratio of 14.68 and a debt-to-equity ratio of 0.76.

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.