GameStop (NYSE:GME) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded GameStop from “hold” to “buy,” although Weiss Ratings maintained a “hold (c)” rating and the broader analyst consensus remains “Hold.”
• GameStop reported stronger-than-expected quarterly results, with EPS of $0.30 versus a $0.16 estimate and revenue of $835.3 million, up 14% year over year.
• GME opened at $17.92, near its 1-year low of $17.79, while insiders sold shares under a pre-arranged trading plan; institutional investors own 29.21% of the company.

GameStop (NYSE:GME - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Sunday.

Separately, Weiss Ratings reissued a "hold (c)" rating on shares of GameStop in a report on Wednesday, July 29th. One research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the stock has a consensus rating of "Hold".

GameStop Price Performance

Shares of GME stock opened at $17.92 on Friday. The firm has a market cap of $8.04 billion, a P/E ratio of 13.58 and a beta of 1.79. The company has a debt-to-equity ratio of 0.71, a current ratio of 12.40 and a quick ratio of 11.91. GameStop has a 1-year low of $17.79 and a 1-year high of $28.10. The firm has a fifty day moving average of $20.52 and a two-hundred day moving average of $22.29.

GameStop (NYSE:GME - Get Free Report) last released its earnings results on Tuesday, June 2nd. The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.14. GameStop had a net margin of 20.45% and a return on equity of 13.75%. The company had revenue of $835.30 million during the quarter, compared to the consensus estimate of $766.63 million. During the same quarter in the previous year, the firm earned $0.17 EPS. The company's revenue was up 14.0% on a year-over-year basis.

Insiders Place Their Bets

In other news, insider Daniel William Moore sold 7,085 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $22.38, for a total value of $158,562.30. Following the sale, the insider directly owned 115,125 shares in the company, valued at $2,576,497.50. This represents a 5.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Mark Haymond Robinson sold 7,083 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $22.38, for a total value of $158,517.54. Following the sale, the general counsel directly owned 108,147 shares in the company, valued at approximately $2,420,329.86. The trade was a 6.15% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 18,125 shares of company stock valued at $406,587. Insiders own 9.50% of the company's stock.

Institutional Investors Weigh In On GameStop

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

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.

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