Wedbush Reaffirms “Underperform” Rating for GameStop (NYSE:GME)

Wedbush reissued their underperform rating on shares of GameStop (NYSE:GME) in a report published on Friday, Benzinga reports. The brokerage currently has a $6.20 price target on the stock.

Separately, StockNews.com began coverage on shares of GameStop in a research note on Thursday, August 17th. They set a sell rating for the company.

GameStop Price Performance

GME stock opened at $18.42 on Friday. The company has a current ratio of 1.71, a quick ratio of 1.13 and a debt-to-equity ratio of 0.02. GameStop has a one year low of $15.41 and a one year high of $34.99. The firm has a market capitalization of $5.61 billion, a PE ratio of -27.09 and a beta of -0.26. The firm has a 50-day moving average of $21.21 and a two-hundred day moving average of $21.37.

GameStop (NYSE:GME) last posted its quarterly earnings data on Wednesday, June 7th. The company reported ($0.14) EPS for the quarter, beating analysts’ consensus estimates of ($0.15) by $0.01. GameStop had a negative net margin of 3.56% and a negative return on equity of 14.97%. The company had revenue of $1.24 billion during the quarter, compared to analyst estimates of $1.34 billion. During the same period in the prior year, the firm earned ($0.52) earnings per share. The business’s quarterly revenue was down 10.3% on a year-over-year basis. On average, analysts forecast that GameStop will post -0.34 earnings per share for the current year.

Insider Transactions at GameStop

In related news, Chairman Ryan Cohen purchased 443,842 shares of GameStop stock in a transaction dated Friday, June 9th. The stock was acquired at an average cost of $22.53 per share, with a total value of $9,999,760.26. Following the completion of the transaction, the chairman now directly owns 36,847,842 shares of the company’s stock, valued at $830,181,880.26. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, COO Nir Vinay Patel sold 20,149 shares of the stock in a transaction that occurred on Thursday, July 6th. The stock was sold at an average price of $23.27, for a total value of $468,867.23. Following the transaction, the chief operating officer now owns 1,106,619 shares in the company, valued at $25,751,024.13. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Chairman Ryan Cohen acquired 443,842 shares of the company’s stock in a transaction that occurred on Friday, June 9th. The stock was purchased at an average price of $22.53 per share, for a total transaction of $9,999,760.26. Following the acquisition, the chairman now directly owns 36,847,842 shares of the company’s stock, valued at approximately $830,181,880.26. The disclosure for this purchase can be found here. Insiders sold 132,990 shares of company stock valued at $3,010,604 over the last three months. 12.64% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On GameStop

Hedge funds have recently added to or reduced their stakes in the company. Fifth Third Bancorp increased its holdings in GameStop by 366.7% in the second quarter. Fifth Third Bancorp now owns 1,036 shares of the company’s stock worth $25,000 after buying an additional 814 shares during the last quarter. CoreCap Advisors LLC acquired a new position in GameStop during the fourth quarter valued at approximately $36,000. C M Bidwell & Associates Ltd. acquired a new position in GameStop during the second quarter valued at approximately $36,000. Ameritas Advisory Services LLC acquired a new position in GameStop during the first quarter valued at approximately $39,000. Finally, Covestor Ltd grew its holdings in GameStop by 323.2% during the first quarter. Covestor Ltd now owns 237 shares of the company’s stock valued at $39,000 after purchasing an additional 181 shares during the last quarter. Institutional investors and hedge funds own 39.46% 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.