GameStop (NYSE:GME) Director Lawrence Cheng Buys 55,000 Shares

GameStop Corp. (NYSE:GME) Director Lawrence Cheng bought 55,000 shares of the stock in a transaction on Tuesday, September 8th. The stock was purchased at an average cost of $18.80 per share, with a total value of $1,034,000.00. Following the completion of the purchase, the director directly owned 143,000 shares in the company, valued at $2,688,400. This trade represents a 62.50% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink.

GameStop Trading Down 1.5%

Shares of GameStop stock opened at $18.86 on Wednesday. GameStop Corp. has a fifty-two week low of $17.79 and a fifty-two week high of $28.10. The business’s fifty day moving average is $20.16 and its two-hundred day moving average is $22.04. The company has a quick ratio of 11.91, a current ratio of 12.40 and a debt-to-equity ratio of 0.71. The firm has a market cap of $8.46 billion, a PE ratio of 14.29 and a beta of 1.72.

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

More 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

Hedge Funds Weigh In On GameStop

Large investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. grew its holdings 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 purchasing an additional 732 shares during the period. EverSource Wealth Advisors LLC raised its holdings in GameStop by 226.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company’s stock valued at $31,000 after buying an additional 886 shares during the period. Advisory Services Network LLC acquired a new position in GameStop during the third quarter valued at approximately $39,000. Los Angeles Capital Management LLC acquired a new position in GameStop during the fourth quarter valued at approximately $39,000. Finally, Rockefeller Capital Management L.P. grew its stake in GameStop by 805.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,264 shares of the company’s stock worth $45,000 after buying an additional 2,014 shares during the period. 29.21% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

GME has been the topic of several recent analyst reports. Weiss Ratings reiterated a “hold (c)” rating on shares of GameStop in a report on Wednesday, July 29th. Wall Street Zen downgraded shares of GameStop from a “buy” rating to a “hold” rating in a research note on Monday. One investment analyst has rated the stock with a Hold rating, According to MarketBeat, GameStop currently has a consensus rating of “Hold”.

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.