GameStop Corp. (GME) Downgraded by Zacks Investment Research to “Strong Sell”
GameStop Corp. (NYSE:GME) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Monday.
According to Zacks, “Recently, GameStop Corporation trimmed its third-quarter as well as fiscal 2016 projection. The company cited soft sales of new video games as well as the current sell-through rate of new video game hardware as the reason behind lowering its outlook. Management now envisions third-quarter sales to be $2 billion, flat year over year. Same store sales are expected to decline in the range of 6% to 7% during the quarter under review. Earlier, the company had projected sales growth of 2% to 5%, while same -store sales were expected to range between a 2% decline and a 1% increase. GameStop now foresees third-quarter earnings to be in the band of $0.45 to $0.49. Previously, GameStop estimated to report earnings between $0.53 and $0.58. Of late the Zacks Consensus Estimate has been witnessing a downtrend, ahead of GameStop’s third-quarter fiscal 2016 earnings release.”
Other equities research analysts also recently issued research reports about the company. Bank of America Corp. reissued a “buy” rating on shares of GameStop Corp. in a report on Sunday, July 17th. Pacific Crest reissued a “hold” rating on shares of GameStop Corp. in a report on Sunday, August 28th. Wedbush set a $36.00 target price on GameStop Corp. and gave the stock a “buy” rating in a report on Sunday, August 28th. Robert W. Baird reissued an “outperform” rating and set a $25.00 target price (down previously from $40.00) on shares of GameStop Corp. in a report on Friday, November 4th. Finally, Vetr downgraded GameStop Corp. from a “strong-buy” rating to a “buy” rating and set a $33.63 target price for the company. in a report on Monday, July 18th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company’s stock. GameStop Corp. currently has a consensus rating of “Hold” and an average target price of $33.49.
Shares of GameStop Corp. (NYSE:GME) opened at 22.32 on Monday. The company has a market cap of $2.32 billion, a price-to-earnings ratio of 5.88 and a beta of 1.16. The stock has a 50 day moving average of $24.89 and a 200 day moving average of $27.93. GameStop Corp. has a 12-month low of $20.10 and a 12-month high of $39.77.
GameStop Corp. (NYSE:GME) last announced its quarterly earnings results on Thursday, August 25th. The company reported $0.27 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.27. GameStop Corp. had a return on equity of 19.44% and a net margin of 4.35%. The business earned $1.63 billion during the quarter, compared to the consensus estimate of $1.73 billion. During the same quarter last year, the firm posted $0.31 EPS. The company’s quarterly revenue was down 7.4% on a year-over-year basis. On average, equities analysts expect that GameStop Corp. will post $3.71 earnings per share for the current fiscal year.
In related news, EVP Michael Mauler acquired 10,000 shares of the business’s stock in a transaction that occurred on Thursday, September 15th. The shares were bought at an average cost of $26.91 per share, with a total value of $269,100.00. Following the completion of the purchase, the executive vice president now directly owns 120,922 shares in the company, valued at $3,254,011.02. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 2.70% of the company’s stock.
Institutional investors have recently bought and sold shares of the company. Zurcher Kantonalbank Zurich Cantonalbank raised its position in GameStop Corp. by 1,207.5% in the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 33,080 shares of the company’s stock worth $913,000 after buying an additional 30,550 shares in the last quarter. Commonwealth Bank of Australia raised its position in GameStop Corp. by 26.3% in the third quarter. Commonwealth Bank of Australia now owns 193,826 shares of the company’s stock worth $5,347,000 after buying an additional 40,400 shares in the last quarter. KCG Holdings Inc. bought a new position in GameStop Corp. during the third quarter worth approximately $1,412,000. Brown Advisory Securities LLC raised its position in GameStop Corp. by 49.7% in the third quarter. Brown Advisory Securities LLC now owns 31,672 shares of the company’s stock worth $875,000 after buying an additional 10,521 shares in the last quarter. Finally, Morgan Stanley raised its position in GameStop Corp. by 14.9% in the third quarter. Morgan Stanley now owns 734,378 shares of the company’s stock worth $20,263,000 after buying an additional 95,439 shares in the last quarter.
GameStop Corp. Company Profile
GameStop Corp. is an omnichannel video game retailer. The Company sells video game hardware, physical and digital video game software, video game accessories, as well as mobile and consumer electronics products and other merchandise through its GameStop, EB Games and Micromania stores. The Company operates its business in four Video Game Brands segments: United States, Canada, Australia and Europe, and Technology Brands segment.
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