GameStop (NYSE:GME) Stock Price Breaks Above 200 Day Moving Average – Here’s Why

GameStop Corp. (NYSE:GME) passed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $22.19 and traded as high as $26.48. GameStop shares last traded at $26.4070, with a volume of 9,113,396 shares.

Analyst Upgrades and Downgrades

GME has been the subject of several analyst reports. Zacks Research raised shares of GameStop to a “hold” rating in a report on Friday, October 16th. Yorkville Ives began coverage on shares of GameStop in a report on Wednesday, October 7th. They issued an “outperform” rating and a $32.00 price target on the stock. Wall Street Zen downgraded GameStop from a “buy” rating to a “hold” rating in a research report on Monday, September 7th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of GameStop in a research note on Wednesday, July 29th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $32.00.

GameStop Stock Performance

The company has a quick ratio of 8.07, a current ratio of 8.72 and a debt-to-equity ratio of 0.68. The company has a fifty day moving average price of $22.25 and a 200 day moving average price of $22.23. The stock has a market cap of $12.74 billion, a PE ratio of 20.22 and a beta of 1.63.

GameStop (NYSE:GME) last issued its earnings results on Tuesday, September 8th. The company reported $0.27 earnings per share for the quarter, meeting the consensus estimate of $0.27. GameStop had a return on equity of 13.57% and a net margin of 25.16%. The company had revenue of $790.20 million during the quarter, compared to analysts’ expectations of $756.85 million. During the same period in the prior year, the business posted $0.31 EPS. GameStop’s quarterly revenue was down 18.7% compared to the same quarter last year. Analysts expect that GameStop Corp. will post 1.09 earnings per share for the current year.

Insider Activity

In other news, Director Alain Attal bought 17,500 shares of the business’s stock in a transaction dated Monday, September 21st. The shares were purchased at an average price of $22.97 per share, for a total transaction of $401,975.00. Following the completion of the acquisition, the director owned 618,964 shares of the company’s stock, valued at approximately $14,217,603.08. This trade represents a 2.91% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Nat Turner bought 10,462 shares of the firm’s stock in a transaction that occurred on Thursday, October 1st. The stock was purchased at an average cost of $24.33 per share, for a total transaction of $254,540.46. Following the completion of the purchase, the director owned 10,462 shares of the company’s stock, valued at $254,540.46. This trade represents a ? increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders have bought 4,232,772 shares of company stock valued at $98,994,742 and have sold 33,955 shares valued at $870,667. 9.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On GameStop

A number of large investors have recently added to or reduced their stakes in GME. Rockefeller Capital Management L.P. raised its stake in shares of GameStop by 805.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,264 shares of the company’s stock valued at $45,000 after acquiring an additional 2,014 shares during the last quarter. Global Assets Advisory LLC bought a new stake in shares of GameStop in the first quarter worth about $60,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of GameStop in the fourth quarter worth about $54,000. CX Institutional increased its holdings in GameStop by 537.1% during the 2nd quarter. CX Institutional now owns 3,313 shares of the company’s stock valued at $73,000 after purchasing an additional 2,793 shares during the period. Finally, Lido Advisors LLC purchased a new position in GameStop during the 1st quarter valued at about $210,000. Institutional investors own 29.21% of the company’s stock.

About GameStop

GameStop Corp. is a specialty retailer focused on video games, gaming hardware, accessories, and related entertainment products. Its merchandise includes new and pre-owned video game consoles and software, controllers, headsets, collectibles, toys, apparel, and trading cards. The company sells through its retail stores and e-commerce channels and also offers trade-in services for eligible games, devices, and accessories.

GameStop serves customers primarily in the United States, Canada, and Australia, with its physical-store network complemented by online sales.