Zacks Investment Research cut shares of Gamestop Corporation (NYSE:GME) from a hold rating to a sell rating in a research note released on Monday morning.

According to Zacks, “GameStop has underperformed the industry in the past three months due to decline in the bottom line over the past quarters. In second-quarter fiscal 2017, the company not only missed the Zacks Consensus Estimate but also witnessed 44.4% decline in earnings. Management continues to expect earnings for fiscal 2017 in the range of $3.10-$3.40 per share, compared with fiscal 2016 earnings of $3.77.  However, the top line continues to improve year over year. The company sales were driven by robust demand for Nintendo Switch and Collectibles as well as strong International sales. Moreover, gains in both Technology Brands and Collectibles continue to bode well. Further, it expects to enhance collectibles business to approximately $650-$700 million during fiscal 2017 and anticipates becoming a $1 billion business by the end of fiscal 2019. In the third quarter, Collectibles sales are forecasted to increase by 30-40%.”

A number of other research analysts have also recently issued reports on the stock. Robert W. Baird reiterated an outperform rating and set a $24.00 price objective on shares of Gamestop Corporation in a report on Tuesday, August 29th. Vetr upgraded shares of Gamestop Corporation from a buy rating to a strong-buy rating and set a $33.36 price objective for the company in a report on Friday, September 15th. BidaskClub cut shares of Gamestop Corporation from a hold rating to a sell rating in a report on Tuesday, July 25th. SunTrust Banks, Inc. reiterated a buy rating and set a $25.00 price objective on shares of Gamestop Corporation in a report on Tuesday, October 17th. Finally, ValuEngine upgraded shares of Gamestop Corporation from a hold rating to a buy rating in a report on Monday, October 2nd. Two analysts have rated the stock with a sell rating, nine have given a hold rating and seven have issued a buy rating to the stock. Gamestop Corporation currently has an average rating of Hold and an average price target of $24.04.

Gamestop Corporation (NYSE:GME) traded up $0.07 during trading hours on Monday, reaching $16.25. 1,650,123 shares of the company’s stock were exchanged, compared to its average volume of 2,679,761. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.34 and a quick ratio of 0.49. The firm has a market capitalization of $1,620.92, a PE ratio of 4.38, a price-to-earnings-growth ratio of 0.32 and a beta of 1.24. Gamestop Corporation has a 1-year low of $15.85 and a 1-year high of $26.84.

Gamestop Corporation (NYSE:GME) last posted its quarterly earnings results on Thursday, August 24th. The company reported $0.15 EPS for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.01). The company had revenue of $1.69 billion during the quarter, compared to analyst estimates of $1.64 billion. Gamestop Corporation had a return on equity of 16.66% and a net margin of 3.90%. The company’s revenue for the quarter was up 3.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.27 earnings per share. research analysts forecast that Gamestop Corporation will post 3.3 EPS for the current year.

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A number of hedge funds have recently made changes to their positions in the business. First Heartland Consultants Inc. raised its position in Gamestop Corporation by 15.9% in the third quarter. First Heartland Consultants Inc. now owns 84,896 shares of the company’s stock worth $1,754,000 after acquiring an additional 11,650 shares during the period. California Public Employees Retirement System raised its position in Gamestop Corporation by 11.3% in the third quarter. California Public Employees Retirement System now owns 538,821 shares of the company’s stock worth $11,132,000 after acquiring an additional 54,518 shares during the period. Janney Montgomery Scott LLC raised its position in Gamestop Corporation by 20.1% in the third quarter. Janney Montgomery Scott LLC now owns 33,690 shares of the company’s stock worth $696,000 after acquiring an additional 5,643 shares during the period. Fairbanks Capital Management Inc. raised its position in Gamestop Corporation by 102,111.8% in the third quarter. Fairbanks Capital Management Inc. now owns 164,561 shares of the company’s stock worth $3,400,000 after acquiring an additional 164,400 shares during the period. Finally, Point72 Asset Management L.P. raised its position in Gamestop Corporation by 210.7% in the third quarter. Point72 Asset Management L.P. now owns 116,224 shares of the company’s stock worth $2,401,000 after acquiring an additional 221,224 shares during the period.

About Gamestop Corporation

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. It operates its business in five segments, which consists of four Video Game Brands segments: United States, Canada, Australia and Europe, and Technology Brands segment.

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