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

GameStop Corp. (NYSE:GME)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $28.36, but opened at $25.87. GameStop shares last traded at $24.81, with a volume of 11,103,359 shares changing hands.

Analyst Upgrades and Downgrades

Separately, Wedbush reiterated an “underperform” rating and set a $10.00 price target on shares of GameStop in a research note on Monday.

GameStop Stock Performance

The company has a 50-day moving average of $25.59 and a 200-day moving average of $25.69. The stock has a market cap of $10.78 billion, a price-to-earnings ratio of 134.82 and a beta of -0.29.

GameStop (NYSE:GME) last announced its earnings results on Tuesday, March 25th. The company reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.09 by $0.21. GameStop had a return on equity of 2.11% and a net margin of 1.45%. The company had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.48 billion. During the same period last year, the business posted $0.21 EPS. The company’s revenue was down 28.5% on a year-over-year basis. As a group, equities research analysts forecast that GameStop Corp. will post 0.08 EPS for the current year.

Insiders Place Their Bets

In other GameStop news, insider Daniel William Moore sold 895 shares of the stock in a transaction on Friday, January 3rd. The stock was sold at an average price of $31.07, for a total value of $27,807.65. Following the completion of the transaction, the insider now owns 31,385 shares in the company, valued at approximately $975,131.95. This represents a 2.77 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, General Counsel Mark Haymond Robinson sold 1,577 shares of the business’s stock in a transaction on Friday, January 3rd. The stock was sold at an average price of $31.07, for a total transaction of $48,997.39. Following the sale, the general counsel now owns 42,350 shares in the company, valued at $1,315,814.50. The trade was a 3.59 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 12.28% of the stock is owned by insiders.

Hedge Funds Weigh In On GameStop

A number of large investors have recently made changes to their positions in GME. State Street Corp grew its position in GameStop by 38.0% during the third quarter. State Street Corp now owns 11,143,759 shares of the company’s stock worth $255,526,000 after buying an additional 3,070,571 shares during the period. Vanguard Group Inc. boosted its position in GameStop by 5.5% during the fourth quarter. Vanguard Group Inc. now owns 39,144,063 shares of the company’s stock worth $1,226,775,000 after purchasing an additional 2,036,032 shares in the last quarter. Slate Path Capital LP acquired a new stake in GameStop in the fourth quarter valued at $60,361,000. Geode Capital Management LLC increased its position in shares of GameStop by 41.8% in the third quarter. Geode Capital Management LLC now owns 6,278,680 shares of the company’s stock valued at $144,009,000 after buying an additional 1,852,088 shares in the last quarter. Finally, D. E. Shaw & Co. Inc. raised its stake in shares of GameStop by 606.7% during the 4th quarter. D. E. Shaw & Co. Inc. now owns 1,650,750 shares of the company’s stock worth $51,735,000 after buying an additional 1,417,156 shares during the last quarter. Hedge funds and other institutional investors own 29.21% of the company’s stock.

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.