GameStop (NYSE:GME) Trading Down 6% – Here’s Why

Shares of GameStop Corp. (NYSE:GME) dropped 6% on Tuesday . The company traded as low as $28.78 and last traded at $29.17. Approximately 5,899,624 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 8,245,287 shares. The stock had previously closed at $31.02.

Wall Street Analyst Weigh In

GME has been the subject of several analyst reports. Wedbush reissued an “underperform” rating and issued a $10.00 target price on shares of GameStop in a research note on Friday, December 6th. StockNews.com upgraded shares of GameStop to a “sell” rating in a research note on Saturday, October 19th.

GameStop Price Performance

The business’s 50-day moving average is $29.14 and its 200 day moving average is $24.85. The firm has a market capitalization of $12.95 billion, a P/E ratio of 161.06 and a beta of -0.02.

GameStop (NYSE:GME) last issued its quarterly earnings results on Tuesday, December 10th. The company reported $0.06 EPS for the quarter, topping analysts’ consensus estimates of ($0.03) by $0.09. GameStop had a return on equity of 2.11% and a net margin of 1.45%. The company had revenue of $860.30 million for the quarter, compared to analysts’ expectations of $887.68 million. The company’s revenue was down 20.2% compared to the same quarter last year. Analysts anticipate that GameStop Corp. will post 0.08 EPS for the current fiscal year.

Insider Buying and Selling at GameStop

In related news, insider Daniel William Moore sold 895 shares of GameStop 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 $27,807.65. Following the transaction, the insider now directly owns 31,385 shares of the company’s stock, valued at $975,131.95. The trade was a 2.77 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Mark Haymond Robinson sold 1,577 shares of the company’s stock in a transaction that occurred on Friday, January 3rd. The shares were sold at an average price of $31.07, for a total value of $48,997.39. Following the completion of the sale, the general counsel now owns 42,350 shares in the company, valued at $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. Corporate insiders own 12.28% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. UMB Bank n.a. increased its position in shares of GameStop by 535.8% during the third quarter. UMB Bank n.a. now owns 1,138 shares of the company’s stock worth $26,000 after buying an additional 959 shares during the period. CWM LLC boosted its position in GameStop by 19.9% during the third quarter. CWM LLC now owns 3,189 shares of the company’s stock valued at $73,000 after acquiring an additional 529 shares during the last quarter. GAMMA Investing LLC grew its holdings in GameStop by 65.8% during the 4th quarter. GAMMA Investing LLC now owns 3,564 shares of the company’s stock worth $112,000 after acquiring an additional 1,414 shares during the period. Quest Partners LLC grew its holdings in GameStop by 7,156.5% during the 2nd quarter. Quest Partners LLC now owns 6,168 shares of the company’s stock worth $152,000 after acquiring an additional 6,083 shares during the period. Finally, Centaurus Financial Inc. bought a new position in shares of GameStop in the 3rd quarter worth about $171,000. Institutional investors and hedge funds own 29.21% of the company’s stock.

GameStop Company Profile

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.