StockNews.com Upgrades GameStop (NYSE:GME) to Sell

GameStop (NYSE:GME) was upgraded by equities researchers at StockNews.com to a “sell” rating in a research note issued on Wednesday.

Separately, Wedbush cut their target price on GameStop from $11.00 to $10.00 and set an “underperform” rating on the stock in a report on Wednesday.

GameStop Stock Performance

GameStop stock opened at $20.40 on Wednesday. The business has a 50 day moving average of $23.17 and a 200-day moving average of $20.16. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.22 and a quick ratio of 1.42. GameStop has a 1 year low of $9.95 and a 1 year high of $64.83. The company has a market capitalization of $7.16 billion, a P/E ratio of 254.94 and a beta of -0.17.

GameStop (NYSE:GME) last announced its quarterly earnings results on Tuesday, September 10th. The company reported $0.01 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.08) by $0.09. The firm had revenue of $798.30 million during the quarter, compared to analysts’ expectations of $895.67 million. GameStop had a net margin of 0.51% and a return on equity of 1.78%. The company’s revenue was down 31.4% on a year-over-year basis. During the same period in the prior year, the company posted ($0.03) EPS. On average, equities research analysts predict that GameStop will post 0.08 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Lawrence Cheng bought 4,140 shares of the company’s stock in a transaction that occurred on Monday, July 8th. The shares were acquired at an average price of $24.85 per share, for a total transaction of $102,879.00. Following the completion of the acquisition, the director now directly owns 69,228 shares in the company, valued at $1,720,315.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 12.28% of the company’s stock.

Institutional Investors Weigh In On GameStop

Hedge funds have recently added to or reduced their stakes in the business. AlphaMark Advisors LLC grew its position in shares of GameStop by 41.7% during the 2nd quarter. AlphaMark Advisors LLC now owns 1,345 shares of the company’s stock worth $33,000 after buying an additional 396 shares during the period. Centerpoint Advisors LLC bought a new position in GameStop during the second quarter worth $47,000. GAMMA Investing LLC grew its holdings in GameStop by 32.9% in the second quarter. GAMMA Investing LLC now owns 2,064 shares of the company’s stock worth $51,000 after purchasing an additional 511 shares during the period. Russell Investments Group Ltd. increased its stake in GameStop by 147.2% in the first quarter. Russell Investments Group Ltd. now owns 5,080 shares of the company’s stock valued at $65,000 after purchasing an additional 3,025 shares in the last quarter. Finally, CWM LLC raised its holdings in shares of GameStop by 115.6% during the second quarter. CWM LLC now owns 2,660 shares of the company’s stock valued at $66,000 after purchasing an additional 1,426 shares during the period. 29.21% of the stock is currently owned by institutional investors.

About GameStop

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.