GameStop (NYSE:GME) Shares Down 6.2% – Should You Sell?

Shares of GameStop Corp. (NYSE:GME) fell 6.2% during trading on Friday. The stock traded as low as $23.83 and last traded at $23.4650. 2,003,664 shares were traded during mid-day trading, a decline of 72% from the average daily volume of 7,187,502 shares. The stock had previously closed at $25.02.

Wall Street Analyst Weigh In

GME has been the topic of a number of analyst reports. Weiss Ratings reiterated a “hold (c)” rating on shares of GameStop in a report on Wednesday, July 29th. Wall Street Zen cut GameStop from a “buy” rating to a “hold” rating in a research report on Monday, September 7th. One investment analyst has rated the stock with a Hold rating, According to data from MarketBeat, the company currently has an average rating of “Hold”.

GameStop Stock Performance

The company has a market cap of $11.90 billion, a price-to-earnings ratio of 15.50 and a beta of 1.72. The company has a current ratio of 8.72, a quick ratio of 8.07 and a debt-to-equity ratio of 0.68. The stock’s 50 day moving average price is $20.18 and its 200 day moving average price is $21.90.

GameStop (NYSE:GME) last released its quarterly earnings data on Tuesday, September 8th. The company reported $0.27 EPS for the quarter, hitting 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 13.57% and a net margin of 25.16%.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 posted $0.31 EPS.

Insider Buying and Selling at GameStop

In related news, insider Daniel Moore sold 7,085 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $22.38, for a total value of $158,562.30. Following the completion of the sale, the insider directly owned 115,125 shares in the company, valued at approximately $2,576,497.50. This represents a 5.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Lawrence Cheng acquired 55,000 shares of GameStop stock in a transaction on Tuesday, September 8th. The shares were bought at an average price of $18.80 per share, for a total transaction of $1,034,000.00. Following the purchase, the director owned 143,000 shares of the company’s stock, valued at $2,688,400. This represents a 62.50% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders have acquired 2,228,180 shares of company stock worth $48,312,574 and have sold 18,125 shares worth $406,587. Insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On GameStop

Several hedge funds have recently modified their holdings of GME. Renaissance Technologies LLC grew its stake in shares of GameStop by 376.2% during the first quarter. Renaissance Technologies LLC now owns 2,650,303 shares of the company’s stock valued at $61,063,000 after acquiring an additional 2,093,755 shares in the last quarter. Delta Global Management LP purchased a new position in GameStop in the first quarter valued at about $3,448,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in GameStop during the 2nd quarter valued at approximately $1,866,000. Quantinno Capital Management LP increased its holdings in GameStop by 377.8% during the 1st quarter. Quantinno Capital Management LP now owns 138,846 shares of the company’s stock worth $3,199,000 after purchasing an additional 109,788 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings in GameStop by 189.1% during 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 during the last quarter. 29.21% of the stock is currently owned by hedge funds and other institutional investors.

About GameStop

GameStop Corp. is a multichannel retailer specializing in video games, gaming hardware, accessories and related entertainment products. Its offerings include new and pre-owned consoles and games, controllers, headsets, collectibles, apparel, toys and trading cards. The company sells through its retail stores, e-commerce websites and other digital channels.

Founded in 1984 as Babbage’s, the company expanded through acquisitions and adopted the GameStop name in 2000. It has historically operated stores in the United States, Canada, Australia and several European markets, although its international footprint has changed over time as the company has closed or sold certain operations.