GameStop (NYSE:GME) Announces Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• GameStop reported $0.25 earnings per share for the quarter, beating the consensus estimate of $0.19 by $0.06.
• The company's stock rose 1.6% to $23.59, with a market capitalization of $10.55 billion.
• Institutional investors and hedge funds own 29.21% of GameStop's stock, with several firms increasing their holdings in the latest quarter.

GameStop (NYSE:GME - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.06, Zacks reports. GameStop had a return on equity of 5.25% and a net margin of 5.67%.

GameStop Trading Up 1.6%

NYSE GME traded up $0.37 on Tuesday, reaching $23.59. The stock had a trading volume of 16,027,832 shares, compared to its average volume of 10,772,714. The firm has a market capitalization of $10.55 billion, a price-to-earnings ratio of 51.28 and a beta of -0.92. The company has a quick ratio of 7.89, a current ratio of 8.39 and a debt-to-equity ratio of 0.30. GameStop has a 12-month low of $19.31 and a 12-month high of $35.81. The stock has a fifty day moving average price of $23.00 and a two-hundred day moving average price of $24.93.

Insider Transactions at GameStop

In other GameStop news, General Counsel Mark Haymond Robinson sold 11,055 shares of the business's stock in a transaction that occurred on Wednesday, July 23rd. The stock was sold at an average price of $24.18, for a total value of $267,309.90. Following the sale, the general counsel owned 116,781 shares of the company's stock, valued at $2,823,764.58. The trade was a 8.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders sold a total of 13,905 shares of company stock valued at $334,509 over the last 90 days. 8.58% of the stock is owned by insiders.

Hedge Funds Weigh In On GameStop

A number of institutional investors and hedge funds have recently modified their holdings of GME. Rakuten Securities Inc. boosted its stake in 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 acquiring an additional 650 shares in the last quarter. EverSource Wealth Advisors LLC raised its holdings 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 valued at $31,000 after buying an additional 886 shares during the last quarter. California State Teachers Retirement System raised its holdings in GameStop by 0.3% during the second quarter. California State Teachers Retirement System now owns 401,451 shares of the company's stock worth $9,791,000 after purchasing an additional 1,052 shares in the last quarter. American Century Companies Inc. raised its holdings in GameStop by 6.5% during the second quarter. American Century Companies Inc. now owns 35,473 shares of the company's stock worth $865,000 after purchasing an additional 2,162 shares in the last quarter. Finally, Quantinno Capital Management LP grew its position in GameStop by 28.0% during the second quarter. Quantinno Capital Management LP now owns 15,237 shares of the company's stock worth $372,000 after buying an additional 3,332 shares during the period. Institutional investors and hedge funds own 29.21% of the company's stock.

Analysts Set New Price Targets

Separately, Wedbush upgraded GameStop to a "strong sell" rating in a report on Tuesday, July 1st. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, GameStop presently has a consensus rating of "Sell" and an average target price of $13.50.

GameStop Company Profile

GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads.

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