Pacer Advisors Inc. Has $23.14 Million Stake in GameStop Corp. $GME

Key Points

• Pacer Advisors reduced its GameStop stake by 9.7% in the first quarter, selling 107,990 shares and retaining 1,004,545 shares valued at $23.14 million. Institutional investors collectively own 29.21% of the company.
• GameStop’s planned exchange of $1.4 billion in convertible notes for equity could reduce long-term debt, but it would also dilute existing shareholders and potentially increase selling pressure if participating noteholders hedge by shorting the stock.
• GME fell 12.3% toward its 12-month low amid heavy trading volume, despite GameStop beating quarterly earnings and revenue estimates; analysts maintain a consensus “Hold” rating.

Pacer Advisors Inc. reduced its position in GameStop Corp. (NYSE:GME - Free Report) by 9.7% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,004,545 shares of the company's stock after selling 107,990 shares during the period. Pacer Advisors Inc. owned approximately 0.22% of GameStop worth $23,145,000 at the end of the most recent quarter.

Several other hedge funds have also bought and sold shares of the business. Renaissance Technologies LLC lifted its stake in shares of GameStop by 376.2% in the first quarter. Renaissance Technologies LLC now owns 2,650,303 shares of the company's stock valued at $61,063,000 after buying an additional 2,093,755 shares in the last quarter. Delta Global Management LP acquired a new position in GameStop during the 1st quarter valued at about $3,448,000. Dimensional Fund Advisors LP boosted its stake in GameStop by 189.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,909,284 shares of the company's stock valued at $90,046,000 after purchasing an additional 2,557,079 shares during the last quarter. Geode Capital Management LLC increased its holdings in GameStop by 1.3% during the 4th quarter. Geode Capital Management LLC now owns 7,340,631 shares of the company's stock worth $147,431,000 after purchasing an additional 92,996 shares in the last quarter. Finally, Virtu Financial LLC purchased a new stake in shares of GameStop in the fourth quarter worth approximately $1,745,000. Institutional investors and hedge funds own 29.21% of the company's stock.

Trending Headlines about GameStop

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: The exchange would substantially reduce GameStop’s long-term debt without requiring a cash payment, potentially lowering future financial obligations and strengthening the balance sheet. The company is exchanging approximately $400 million of notes due in 2030 and $1 billion due in 2032. GameStop Announces Private Exchange of $1.4 Billion of Convertible Senior Notes for Equity
• Neutral Sentiment: Options activity was unusually high, with traders purchasing 205,389 call options, about 18% above typical call volume. This indicates increased speculative interest but does not guarantee sustained buying support.
• Negative Sentiment: Because noteholders will receive newly issued shares, existing shareholders face dilution. Investors are interpreting the debt-for-equity swap as shifting part of the restructuring cost to current stockholders. GameStop stock slides after $1.4B debt-for-stock swap raises dilution concerns
• Negative Sentiment: GameStop warned that some participating noteholders could hedge their new equity positions by shorting GME, creating additional near-term selling pressure. GameStop Warns Its Own Noteholders Might Short GME Stock
• Negative Sentiment: The stock fell toward its lowest level since August 2024 on exceptionally heavy volume, suggesting broad investor concern over dilution and possible noteholder selling rather than a purely technical move. GameStop stock sinks to lowest level since August 2024

Insiders Place Their Bets

In related news, General Counsel Mark Haymond Robinson sold 7,083 shares of the business's stock in a transaction dated Wednesday, July 1st. The stock was 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 sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel William Moore sold 7,085 shares of the company'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 $158,562.30. Following the sale, the insider directly owned 115,125 shares in the company, valued at approximately $2,576,497.50. This trade represents a 5.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 18,125 shares of company stock worth $406,587 in the last ninety days. Insiders own 9.50% of the company's stock.

GameStop Stock Down 12.3%

GME opened at $19.05 on Tuesday. GameStop Corp. has a twelve month low of $18.55 and a twelve month high of $28.10. The company's 50-day moving average price is $21.78 and its two-hundred day moving average price is $22.92. The stock has a market cap of $8.55 billion, a price-to-earnings ratio of 14.43 and a beta of 1.79. The company has a quick ratio of 11.91, a current ratio of 12.40 and a debt-to-equity ratio of 0.71.

GameStop (NYSE:GME - Get Free Report) last issued its quarterly earnings results on Tuesday, June 2nd. The company reported $0.30 earnings per share (EPS) 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 analyst estimates of $766.63 million. During the same quarter last year, the business posted $0.17 EPS. GameStop's quarterly revenue was up 14.0% compared to the same quarter last year.

Analysts Set New Price Targets

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

GameStop 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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