First Trust Advisors LP Acquires 167,956 Shares of GameStop Corp. $GME

Key Points

• First Trust Advisors LP increased its GameStop stake by 412.7% in the first quarter, acquiring 167,956 additional shares for a total of 208,650 shares valued at $4.8 million. Other institutions, including UBS Asset Management and Goldman Sachs, also raised their holdings; institutional investors own 29.21% of GME.
• GameStop’s planned $1.4 billion debt-for-equity swap could strengthen its balance sheet and reduce repayment obligations, but the undetermined number of new shares creates significant dilution risk for existing shareholders. Noteholders may also sell or hedge the newly issued shares, potentially adding near-term pressure.
• GameStop recently beat quarterly expectations, reporting $0.30 in adjusted EPS versus $0.16 expected and 14% year-over-year revenue growth. Despite some bullish valuation views, analyst sentiment remains cautious, with a consensus “Hold” rating and the stock recently trading near $19.21.

First Trust Advisors LP boosted its stake in GameStop Corp. (NYSE:GME - Free Report) by 412.7% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 208,650 shares of the company's stock after purchasing an additional 167,956 shares during the period. First Trust Advisors LP's holdings in GameStop were worth $4,807,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. AQR Capital Management LLC raised 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 acquiring an additional 22,297 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of GameStop by 33.2% in the first quarter. Goldman Sachs Group Inc. now owns 262,143 shares of the company's stock worth $5,851,000 after purchasing an additional 65,325 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of GameStop by 9.2% in 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 worth $25,255,000 after purchasing an additional 94,892 shares during the last quarter. American Century Companies Inc. increased its holdings in GameStop by 6.5% during the 2nd quarter. American Century Companies Inc. now owns 35,473 shares of the company's stock valued at $865,000 after purchasing an additional 2,162 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its holdings in GameStop by 226.6% in the second 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 in the last quarter. Institutional investors own 29.21% of the company's stock.

Key Stories Impacting GameStop

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: GameStop will eliminate roughly $1.4 billion in debt, including approximately $400 million of notes due in 2030 and $1 billion due in 2032. The move should strengthen the balance sheet, preserve cash and reduce future repayment obligations. GameStop Could Be 91% Undervalued After Its Debt-for-Equity Swap
• Positive Sentiment: Some valuation analyses argue that GME could be materially undervalued after accounting for its cash-rich balance sheet and lower debt burden. Recent quarterly results also showed stronger-than-expected adjusted earnings and revenue growth, supporting the longer-term bull case.
• Positive Sentiment: Unusually heavy call-option buying and overnight retail interest suggest that some traders view the debt exchange as part of a broader corporate strategy or potential catalyst. This speculative demand could provide intermittent support for the stock. Retail Investors See a Bigger Corporate Play
• Neutral Sentiment: The exact number of new shares has not yet been determined. It will be calculated during a 35-day pricing period, with the transaction expected to close around late September 2026, leaving investors uncertain about the final dilution level. GameStop Debt-for-Equity Swap Analysis
• Negative Sentiment: Issuing shares to retire debt transfers much of the cost to existing shareholders. The potential increase in the share count is weighing on per-share value and has prompted concerns that the transaction could materially dilute ownership. GameStop Debt-for-Stock Swap Raises Dilution Concerns
• Negative Sentiment: GameStop warned that participating noteholders may sell or hedge the newly received shares, potentially including short sales. That prospect is adding near-term supply and has intensified the selloff following the announcement. GameStop Warns Noteholders Might Short GME Stock

Analyst Ratings Changes

A number of equities analysts have issued reports on GME shares. Wall Street Zen upgraded GameStop from a "hold" rating to a "buy" rating in a report on Sunday, June 14th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of GameStop in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the stock has a consensus rating of "Hold".

Insider Buying and Selling

In related news, insider Daniel William Moore sold 7,085 shares of the business's stock in a transaction that occurred 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 completion of the sale, the insider owned 115,125 shares in the company, valued at approximately $2,576,497.50. The trade was a 5.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Mark Haymond Robinson sold 7,083 shares of the company's stock in a transaction dated Wednesday, July 1st. The stock was 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 directly owned 108,147 shares of the company's stock, valued at approximately $2,420,329.86. This trade represents a 6.15% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 valued at $406,587. Company insiders own 9.50% of the company's stock.

GameStop Price Performance

Shares of NYSE:GME opened at $19.21 on Wednesday. The company has a quick ratio of 11.91, a current ratio of 12.40 and a debt-to-equity ratio of 0.71. The stock has a market capitalization of $8.62 billion, a PE ratio of 14.56 and a beta of 1.79. The firm's 50 day moving average price is $21.72 and its 200-day moving average price is $22.90. GameStop Corp. has a twelve month low of $18.55 and a twelve month high of $28.10.

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, beating analysts' consensus estimates of $0.16 by $0.14. The company had revenue of $835.30 million for the quarter, compared to analysts' expectations of $766.63 million. GameStop had a net margin of 20.45% and a return on equity of 13.75%. GameStop's revenue for the quarter was up 14.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.17 EPS.

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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