WINTON GROUP Ltd Makes New $5.11 Million Investment in GameStop Corp. $GME

Key Points

• WINTON GROUP Ltd purchased 231,492 GameStop shares worth approximately $5.11 million, representing about 0.05% of the company. Institutional investors collectively own 29.21% of GameStop.
• GameStop’s quarterly revenue of $790.2 million exceeded expectations, and collectibles revenue rose 57%, while adjusted EPS matched estimates at $0.27. However, total revenue declined 18.7% year over year and traditional software and hardware sales weakened.
• Insiders made substantial purchases, including CEO Ryan Cohen’s acquisition of 1 million shares for roughly $20.4 million and additional buying by directors. Despite the insider support, analysts maintain an overall “Hold” rating, citing uncertainty about the company’s turnaround.

WINTON GROUP Ltd purchased a new position in shares of GameStop Corp. (NYSE:GME - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 231,492 shares of the company's stock, valued at approximately $5,111,000. WINTON GROUP Ltd owned about 0.05% of GameStop at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of GME. Northwestern Mutual Wealth Management Co. grew its holdings in GameStop by 308.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company's stock valued at $26,000 after purchasing an additional 732 shares during the period. EverSource Wealth Advisors LLC raised its stake in shares of GameStop by 226.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company's stock worth $31,000 after buying an additional 886 shares during the period. Advisory Services Network LLC purchased a new position in shares of GameStop during the 3rd quarter valued at about $39,000. Los Angeles Capital Management LLC purchased a new position in shares of GameStop during the 4th quarter valued at about $39,000. Finally, Rockefeller Capital Management L.P. grew its stake in shares of GameStop by 805.6% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,264 shares of the company's stock valued at $45,000 after acquiring an additional 2,014 shares during the period. Institutional investors own 29.21% of the company's stock.

Key GameStop News

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: CEO Ryan Cohen purchased 1 million GME shares for approximately $20.4 million, increasing his ownership by 2.61%. Director Alain Attal also bought 5,000 shares for $100,000, while Director James Grube purchased 10,255 shares for roughly $196,000. The purchases may reinforce investor confidence in GameStop’s valuation and strategy. Ryan Cohen GameStop stock purchase filing James Grube GameStop stock purchase
• Positive Sentiment: Director Lawrence Cheng recently bought 55,000 shares for about $1.03 million, increasing his direct stake by 62.5%. The cluster of insider buying following earnings is supporting the bullish case among retail investors. Lawrence Cheng GameStop stock purchase
• Positive Sentiment: GameStop reported adjusted EPS of $0.27, matching consensus, while revenue of $790.2 million exceeded estimates near $756.8 million. Collectibles revenue jumped 57%, providing evidence that the company’s merchandise strategy may be gaining traction. GameStop second-quarter earnings beat
• Neutral Sentiment: Unusually high call-option activity and speculation about how Ryan Cohen may deploy GameStop’s large cash balance are adding to trading momentum, but they do not establish a fundamental change in the business. Reports that GameStop may reconsider an eBay bid also remain unconfirmed. GameStop eBay speculation and earnings
• Negative Sentiment: Revenue declined 18.7% year over year and EPS fell from $0.31 to $0.27, with software and hardware sales weakening. Analysts continue to question whether collectibles growth can offset contraction in GameStop’s traditional gaming operations; one report favors eBay as the cleaner, more profitable investment. GameStop comeback case and eBay comparison

Insider Buying and Selling at GameStop

In related news, Director Alain Attal acquired 5,000 shares of GameStop stock in a transaction dated Thursday, September 10th. The shares were purchased at an average price of $20.00 per share, for a total transaction of $100,000.00. Following the completion of the transaction, the director directly owned 601,464 shares in the company, valued at approximately $12,029,280. This represents a 0.84% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Ryan Cohen bought 1,000,000 shares of the stock in a transaction dated Thursday, September 10th. The stock was bought at an average cost of $20.38 per share, for a total transaction of $20,380,000.00. Following the acquisition, the chief executive officer directly owned 39,347,842 shares of the company's stock, valued at approximately $801,909,019.96. This represents a 2.61% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders bought 1,060,000 shares of company stock worth $21,514,000 and sold 18,125 shares worth $406,587. Corporate insiders own 9.50% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on GME shares. Weiss Ratings reissued a "hold (c)" rating on shares of GameStop in a report on Wednesday, July 29th. Wall Street Zen lowered shares of GameStop from a "buy" rating to a "hold" rating in a research report on Monday. One equities research analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the stock currently has an average rating of "Hold".

GameStop Price Performance

Shares of GameStop stock opened at $20.42 on Friday. The company has a market capitalization of $9.16 billion, a price-to-earnings ratio of 13.43 and a beta of 1.72. The company has a quick ratio of 11.91, a current ratio of 8.72 and a debt-to-equity ratio of 0.68. The stock's 50-day simple moving average is $20.06 and its 200-day simple moving average is $21.99. GameStop Corp. has a 52 week low of $17.79 and a 52 week high of $28.10.

GameStop (NYSE:GME - Get Free Report) last released its earnings results on Tuesday, September 8th. The company reported $0.27 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.27. The firm had revenue of $790.20 million during the quarter, compared to analysts' expectations of $756.85 million. GameStop had a return on equity of 13.57% and a net margin of 25.16%.The firm's revenue was down 18.7% on a year-over-year basis. During the same quarter last year, the business posted $0.31 earnings per share.

About GameStop

GameStop Corp. is a multichannel retailer specializing in video games, gaming hardware, accessories and related entertainment products. Its offerings include new and pre-owned consoles and games, controllers, headsets, collectibles, apparel, toys and trading cards. The company sells through its retail stores, e-commerce websites and other digital channels.

Founded in 1984 as Babbage's, the company expanded through acquisitions and adopted the GameStop name in 2000. It has historically operated stores in the United States, Canada, Australia and several European markets, although its international footprint has changed over time as the company has closed or sold certain operations.

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