GameStop (NYSE:GME) Shares Gap Up on Strong Earnings

GameStop Corp. (NYSE:GME) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. 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.

The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.09 by $0.21. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates 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 quarter last year, the firm posted $0.21 earnings per share.

Wall Street Analysts Forecast Growth

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

Insider Buying and Selling

In related news, General Counsel Mark Haymond Robinson sold 1,577 shares of the company’s stock in a transaction that occurred 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 transaction, the general counsel now directly owns 42,350 shares of the company’s stock, valued at approximately $1,315,814.50. This represents a 3.59 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Daniel William Moore sold 895 shares of GameStop stock in a transaction on Friday, January 3rd. The stock was sold at an average price of $31.07, for a total value of $27,807.65. Following the completion of the sale, the insider now directly owns 31,385 shares of the company’s stock, 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.

Hedge Funds Weigh In On GameStop

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of GameStop by 223.5% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 990 shares of the company’s stock valued at $31,000 after purchasing an additional 684 shares during the last quarter. New Wave Wealth Advisors LLC purchased a new position in shares of GameStop in the 4th quarter worth $37,000. R Squared Ltd bought a new stake in shares of GameStop in the fourth quarter worth $51,000. Bessemer Group Inc. increased its position in GameStop by 67.2% during the fourth quarter. Bessemer Group Inc. now owns 1,720 shares of the company’s stock valued at $54,000 after acquiring an additional 691 shares during the last quarter. Finally, UMB Bank n.a. lifted its holdings in GameStop by 59.9% in the fourth quarter. UMB Bank n.a. now owns 1,820 shares of the company’s stock valued at $57,000 after acquiring an additional 682 shares during the period. Institutional investors own 29.21% of the company’s stock.

GameStop Price Performance

The firm has a 50-day simple moving average of $25.59 and a 200-day simple moving average of $25.67. The firm has a market capitalization of $13.06 billion, a PE ratio of 160.64 and a beta of -0.29.

About GameStop

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.