GameStop (NYSE:GME) Director Lawrence Cheng Buys 55,000 Shares

GameStop Corp. (NYSE:GME) Director Lawrence Cheng acquired 55,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 8th. The shares were acquired at an average price of $18.80 per share, with a total value of $1,034,000.00. Following the acquisition, the director owned 143,000 shares in the company, valued at $2,688,400. This trade represents a 62.50% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

GameStop Trading Down 1.5%

GameStop stock traded down $0.30 during mid-day trading on Tuesday, hitting $18.86. The company’s stock had a trading volume of 10,206,484 shares, compared to its average volume of 7,004,974. The company has a debt-to-equity ratio of 0.71, a quick ratio of 11.91 and a current ratio of 12.40. The company has a 50 day moving average of $20.23 and a 200-day moving average of $22.07. GameStop Corp. has a one year low of $17.79 and a one year high of $28.10. The stock has a market cap of $8.46 billion, a PE ratio of 14.29 and a beta of 1.72.

GameStop (NYSE:GME) last released its earnings results on Tuesday, September 8th. The company reported $0.27 earnings per share for the quarter, hitting the consensus estimate of $0.27. The business had revenue of $790.20 million during the quarter, compared to the consensus estimate of $756.85 million. GameStop had a return on equity of 13.75% and a net margin of 20.45%.The business’s revenue for the quarter was down 18.7% compared to the same quarter last year. During the same period last year, the company earned $0.31 earnings per share.

Key Headlines Impacting GameStop

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: GameStop reported second-quarter adjusted EPS of $0.27, in line with expectations, while revenue of $790.2 million exceeded the $756.85 million consensus estimate. Profitability improved, and management reportedly raised its full-year outlook. GameStop Profit Rises, Boosts Full Year Outlook
• Positive Sentiment: Collectibles were identified as a source of strength, helping GameStop deliver a top-line beat despite weakness in its traditional gaming business. GameStop Delivers Top-Line Beat on Strong Collectibles Growth
• Positive Sentiment: Analysts and commentators continue to view GameStop’s large cash position as strategic flexibility, potentially supporting acquisitions or other investments under Executive Chairman Ryan Cohen. GameStop’s Next Big Move Could Matter More Than Its Earnings
• Neutral Sentiment: Speculation about acquisition discussions involving eBay remains an important potential catalyst, but no transaction has been confirmed. Investors are waiting to learn what GameStop’s long-term business model will become. GME & EBAY Saga Not Over
• Negative Sentiment: Quarterly revenue fell 18.7% year over year, and commentary suggested eBay-related gains and collectibles growth may be masking contraction in GameStop’s core operations. EPS also declined from $0.31 to $0.27 year over year. GameStop Earnings Preview
• Negative Sentiment: One valuation analysis indicated GME traded substantially above its estimated fair value, while Wall Street Zen lowered its stock rating, adding pressure to the investment case. GameStop Tops GF Value

Analysts Set New Price Targets

A number of brokerages have commented on GME. Weiss Ratings restated a “hold (c)” rating on shares of GameStop in a research note on Wednesday, July 29th. Wall Street Zen lowered GameStop from a “buy” rating to a “hold” rating in a report on Monday. One investment analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold”.

Institutional Trading of GameStop

Several institutional investors and hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC increased its position in GameStop by 312.2% during the 1st quarter. AQR Capital Management LLC now owns 29,438 shares of the company’s stock valued at $623,000 after purchasing an additional 22,297 shares during the period. Goldman Sachs Group Inc. boosted its stake in shares of GameStop by 33.2% during the first quarter. Goldman Sachs Group Inc. now owns 262,143 shares of the company’s stock valued at $5,851,000 after purchasing an additional 65,325 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in GameStop by 9.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,131,481 shares of the company’s stock valued at $25,255,000 after buying an additional 94,892 shares during the period. American Century Companies Inc. raised its stake in GameStop by 6.5% in the second quarter. American Century Companies Inc. now owns 35,473 shares of the company’s stock worth $865,000 after buying an additional 2,162 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in GameStop by 226.6% during the second quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company’s stock worth $31,000 after buying an additional 886 shares during the period. 29.21% of the stock is currently owned by institutional investors.

About GameStop

GameStop Corp. (NYSE:GME) is a global specialty retailer focused on video games, gaming consoles, consumer electronics and related accessories. The company operates a network of physical retail stores alongside an e-commerce platform, offering new and pre-owned products spanning the latest game software, hardware, collectibles and lifestyle merchandise. GameStop’s retail footprint is complemented by digital marketplaces for trade-ins and online purchases, as well as a membership program that provides exclusive content and rewards.

Originally founded in 1984 as Babbage’s in Dallas, Texas, the company adopted the GameStop name in 1999 following its merger with Software Etc.