GameStop Corp. (GME) Trading 8.1% Higher on Better-Than-Expected Earnings
GameStop Corp. (NYSE:GME)’s share price was up 8.1% during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $26.41 and last traded at $26.06, with a volume of 9,390,261 shares traded. The stock had previously closed at $24.11.
The company reported $0.49 EPS for the quarter, topping the Zacks’ consensus estimate of $0.47 by $0.02. GameStop Corp. had a return on equity of 18.72% and a net margin of 4.32%. The company had revenue of $1.96 billion for the quarter. During the same period in the prior year, the firm posted $0.54 earnings per share. The firm’s revenue for the quarter was down 2.8% on a year-over-year basis.
The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 13th. Stockholders of record on Thursday, December 1st will be given a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a dividend yield of 5.68%. The ex-dividend date of this dividend is Tuesday, November 29th. GameStop Corp.’s dividend payout ratio is currently 39.47%.
Several equities analysts have recently weighed in on the company. Wedbush set a $36.00 target price on GameStop Corp. and gave the company a “buy” rating in a research report on Sunday, August 28th. Pacific Crest reissued a “hold” rating on shares of GameStop Corp. in a research report on Sunday, August 28th. Vetr downgraded GameStop Corp. from a “buy” rating to a “sell” rating and set a $25.08 target price on the stock. in a research report on Thursday. 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 research report on Friday, November 4th. Finally, Piper Jaffray Cos. downgraded GameStop Corp. from an “overweight” rating to a “neutral” rating and cut their target price for the company from $41.00 to $23.00 in a research report on Wednesday, November 2nd. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and nine have given a buy rating to the company. The company has a consensus rating of “Hold” and a consensus target price of $31.63.
In other GameStop Corp. news, EVP Michael Mauler purchased 10,000 shares of the firm’s stock in a transaction on Thursday, September 15th. The stock was bought at an average cost of $26.91 per share, for a total transaction of $269,100.00. Following the completion of the purchase, the executive vice president now owns 120,922 shares in the company, valued at approximately $3,254,011.02. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 2.70% of the stock is owned by company insiders.
Large investors have recently added to or reduced their stakes in the stock. BlackRock Fund Advisors boosted its stake in GameStop Corp. by 121.9% in the second quarter. BlackRock Fund Advisors now owns 3,625,827 shares of the company’s stock worth $96,374,000 after buying an additional 1,991,782 shares during the period. JPMorgan Chase & Co. raised its position in shares of GameStop Corp. by 403.8% in the second quarter. JPMorgan Chase & Co. now owns 1,162,782 shares of the company’s stock worth $30,906,000 after buying an additional 931,985 shares in the last quarter. Dalton Greiner Hartman Maher & Co. purchased a new position in shares of GameStop Corp. during the third quarter worth $23,569,000. State of New Jersey Common Pension Fund D raised its position in shares of GameStop Corp. by 114.3% in the second quarter. State of New Jersey Common Pension Fund D now owns 1,500,000 shares of the company’s stock worth $39,870,000 after buying an additional 800,000 shares in the last quarter. Finally, Chartwell Investment Partners LLC raised its position in shares of GameStop Corp. by 3,534.9% in the third quarter. Chartwell Investment Partners LLC now owns 694,815 shares of the company’s stock worth $19,170,000 after buying an additional 675,700 shares in the last quarter.
The stock has a market cap of $2.71 billion, a price-to-earnings ratio of 6.87 and a beta of 1.16. The firm’s 50-day moving average price is $24.02 and its 200 day moving average price is $27.43.
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About GameStop Corp.
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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