GameStop (NYSE:GME) Cut to “Hold” at Wall Street Zen

Wall Street Zen cut shares of GameStop (NYSE:GME) from a buy rating to a hold rating in a report issued on Monday,Wall Street Zen reports.

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

GameStop Trading Up 5.9%

Shares of GameStop stock opened at $20.00 on Monday. The firm’s 50-day moving average price is $20.11 and its two-hundred day moving average price is $22.01. GameStop has a 12-month low of $17.79 and a 12-month high of $28.10. 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 company has a market capitalization of $8.97 billion, a price-to-earnings ratio of 13.16 and a beta of 1.72.

GameStop (NYSE:GME) last announced its quarterly earnings data on Tuesday, September 8th. The company reported $0.27 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.27. GameStop had a net margin of 25.16% and a return on equity of 13.94%. The business had revenue of $790.20 million for the quarter, compared to analysts’ expectations of $756.85 million. During the same period last year, the firm posted $0.31 earnings per share. The firm’s quarterly revenue was down 18.7% compared to the same quarter last year.

Insider Transactions at GameStop

In other GameStop news, insider Daniel Moore sold 7,085 shares of the company’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $22.38, for a total transaction of $158,562.30. Following the sale, the insider owned 115,125 shares of the company’s stock, valued at approximately $2,576,497.50. This represents a 5.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, General Counsel Mark Robinson sold 7,083 shares of GameStop stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $22.38, for a total value of $158,517.54. Following the completion of the transaction, the general counsel directly owned 108,147 shares of the company’s stock, valued at approximately $2,420,329.86. This trade represents a 6.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 18,125 shares of company stock worth $406,587. Company insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On GameStop

Hedge funds have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. increased its position in GameStop by 308.9% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company’s stock valued at $26,000 after buying an additional 732 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in GameStop by 226.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company’s stock valued at $31,000 after purchasing an additional 886 shares during the period. Advisory Services Network LLC bought a new stake in GameStop during the 3rd quarter valued at $39,000. Los Angeles Capital Management LLC bought a new stake in GameStop during the 4th quarter valued at $39,000. Finally, Rockefeller Capital Management L.P. raised its holdings 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 last quarter. 29.21% of the stock is currently owned by institutional investors.

More GameStop News

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: GameStop reported adjusted EPS of $0.27, matching one consensus estimate and exceeding another estimate of $0.19. Revenue of $790.2 million also topped expectations of approximately $756.8 million, with collectibles revenue reportedly rising 57%. GameStop beats second-quarter estimates on collectibles
• Positive Sentiment: Director Lawrence Cheng purchased 55,000 GameStop shares for approximately $1.03 million at an average price of $18.80, increasing his direct ownership by 62.5%. The sizable insider purchase may signal confidence in the company’s valuation or prospects. Lawrence Cheng purchases GameStop shares
• Positive Sentiment: Trading data showed 245,499 GME call options changing hands Wednesday, 58% above the typical daily call volume of 155,655. The activity suggests increased speculative or bullish interest, although options positioning does not guarantee further gains.
• Neutral Sentiment: Some bullish commentary argues that GameStop’s collectibles business and other revenue streams could support substantial upside, while investors continue to watch how Chairman Ryan Cohen deploys the company’s large cash reserves. No acquisition or major strategic transaction was confirmed. GameStop earnings bull case
• Negative Sentiment: Quarterly 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 reflected better-than-feared performance rather than renewed overall sales growth.
• Negative Sentiment: Analysts cautioned that collectibles growth and possible non-core gains may be masking weakness in GameStop’s traditional gaming operations. Separately, Wall Street Zen downgraded the stock from “buy” to “hold,” and the broader analyst consensus remains “hold.” 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.