GameStop (NYSE:GME) Shares Gap Up Following Earnings Beat

Shares of GameStop Corp. (NYSE:GME) gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $25.40, but opened at $28.84. GameStop shares last traded at $29.06, with a volume of 17,333,027 shares changing hands.

The company reported $0.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.09 by $0.21. The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.48 billion. GameStop had a return on equity of 2.11% and a net margin of 1.45%. The company’s revenue for the quarter was down 28.5% on a year-over-year basis. During the same period last year, the business posted $0.21 EPS.

Wall Street Analysts Forecast Growth

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

Insider Transactions at GameStop

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

Institutional Investors Weigh In On GameStop

Hedge funds have recently bought and sold shares of the business. California State Teachers Retirement System grew its stake in shares of GameStop by 3.6% in the 4th quarter. California State Teachers Retirement System now owns 394,588 shares of the company’s stock worth $12,366,000 after buying an additional 13,576 shares in the last quarter. United Advisor Group LLC lifted its stake in shares of GameStop by 216.8% in the 4th quarter. United Advisor Group LLC now owns 42,740 shares of the company’s stock valued at $1,339,000 after purchasing an additional 29,250 shares during the last quarter. Forum Financial Management LP purchased a new position in shares of GameStop in the 4th quarter worth approximately $206,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of GameStop by 42.3% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,036,589 shares of the company’s stock valued at $32,487,000 after purchasing an additional 307,903 shares during the last quarter. Finally, Vident Advisory LLC raised its holdings in GameStop by 12.1% during the 4th quarter. Vident Advisory LLC now owns 31,384 shares of the company’s stock valued at $984,000 after buying an additional 3,387 shares during the period. Hedge funds and other institutional investors own 29.21% of the company’s stock.

GameStop Price Performance

The business has a 50-day moving average of $25.59 and a 200-day moving average of $25.69. The company has a market capitalization of $12.68 billion, a P/E ratio of 157.68 and a beta of -0.29.

GameStop Company Profile

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.