GameStop (NYSE:GME) Releases Quarterly Earnings Results, Hits Expectations

Key Points

• GameStop met earnings expectations, reporting quarterly EPS of $0.27, while revenue of $790.2 million exceeded analysts’ forecast of $756.85 million. The company posted a 20.45% net margin and 13.75% return on equity.
• Shares opened at $19.21, near the lower end of their 52-week range of $17.79 to $28.10. Analysts maintain an overall “Hold” rating, with one recent downgrade from “Buy” to “Hold.”
• Insiders sold 18,125 shares worth approximately $406,587 during the last quarter, while hedge funds and other institutional investors own 29.21% of GameStop’s outstanding stock.

GameStop (NYSE:GME - Get Free Report) released its earnings results on Tuesday. The company reported $0.27 earnings per share for the quarter, hitting analysts' consensus estimates of $0.27, FiscalAI reports. The business had revenue of $790.20 million for the quarter, compared to analyst estimates of $756.85 million. GameStop had a return on equity of 13.75% and a net margin of 20.45%.

GameStop Price Performance

Shares of GME opened at $19.21 on Tuesday. The firm has a 50-day simple moving average of $20.23 and a two-hundred day simple moving average of $22.07. GameStop has a 1-year low of $17.79 and a 1-year high of $28.10. The stock has a market cap of $8.62 billion, a PE ratio of 14.55 and a beta of 1.72. The company has a debt-to-equity ratio of 0.71, a current ratio of 12.40 and a quick ratio of 11.91.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. Wall Street Zen downgraded shares of GameStop from a "buy" rating to a "hold" rating in a research note on Monday. Weiss Ratings restated a "hold (c)" rating on shares of GameStop in a research report on Wednesday, July 29th. One analyst has rated the stock with a Hold rating, According to MarketBeat.com, the stock has an average rating of "Hold".

Insider Transactions at GameStop

In other GameStop news, insider Daniel Moore sold 7,085 shares of the company's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $22.38, for a total value of $158,562.30. Following the completion of the transaction, the insider 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 transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, General Counsel Mark Robinson sold 7,083 shares of the firm's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $22.38, for a total transaction of $158,517.54. Following the completion of the sale, the general counsel owned 108,147 shares of the company's stock, 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. In the last quarter, insiders sold 18,125 shares of company stock worth $406,587. Company insiders own 9.50% of the company's stock.

Institutional Investors Weigh In On GameStop

Several institutional investors have recently bought and sold shares of the business. Public Employees Retirement System of Ohio increased its stake in GameStop by 0.4% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 131,002 shares of the company's stock worth $3,574,000 after buying an additional 578 shares during the period. Panagora Asset Management Inc. boosted its position in GameStop by 4.5% during the 4th quarter. Panagora Asset Management Inc. now owns 13,692 shares of the company's stock worth $275,000 after acquiring an additional 594 shares during the period. UMB Bank n.a. boosted its holdings in shares of GameStop by 14.5% in the fourth quarter. UMB Bank n.a. now owns 4,694 shares of the company's stock valued at $94,000 after acquiring an additional 595 shares in the last quarter. Rakuten Securities Inc. lifted its holdings in shares of GameStop by 9.4% in the second quarter. Rakuten Securities Inc. now owns 7,572 shares of the company's stock valued at $185,000 after buying an additional 650 shares during the period. Finally, Northwestern Mutual Wealth Management Co. grew its position in GameStop by 308.9% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company's stock worth $26,000 after buying an additional 732 shares during the last quarter. 29.21% of the stock is currently owned by hedge funds and other institutional investors.

GameStop Company Profile

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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