GameStop (NYSE:GME) Releases Earnings Results, Beats Estimates 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) announced its earnings results on Tuesday. The company reported $0.25 earnings per share for the quarter, beating the consensus estimate of $0.19 by $0.06, Zacks reports. The business had revenue of $972.20 million for the quarter, compared to the consensus estimate of $823.25 million. GameStop had a net margin of 9.41% and a return on equity of 7.72%. The business's revenue for the quarter was up 21.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.04 earnings per share.

GameStop Trading Up 0.4%

GME stock traded up $0.09 during trading on Friday, hitting $24.94. The company had a trading volume of 9,262,817 shares, compared to its average volume of 9,169,826. GameStop has a 52-week low of $19.42 and a 52-week high of $35.81. The company has a 50 day simple moving average of $23.06 and a 200-day simple moving average of $24.92. The firm has a market capitalization of $11.16 billion, a P/E ratio of 34.16 and a beta of -0.93. The company has a quick ratio of 7.89, a current ratio of 11.37 and a debt-to-equity ratio of 0.80.

Insider Buying and Selling

In other news, General Counsel Mark Haymond Robinson sold 11,055 shares of the firm's stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $24.18, for a total transaction of $267,309.90. Following the transaction, the general counsel directly owned 116,781 shares of the company's stock, valued at approximately $2,823,764.58. This trade represents a 8.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. In the last 90 days, insiders have sold 13,905 shares of company stock valued at $334,509. 8.58% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC increased its holdings in GameStop by 312.2% during the 1st quarter. AQR Capital Management LLC now owns 29,438 shares of the company's stock worth $623,000 after purchasing an additional 22,297 shares during the period. Goldman Sachs Group Inc. grew its position in shares of GameStop by 33.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 262,143 shares of the company's stock worth $5,851,000 after buying an additional 65,325 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of GameStop by 9.2% during the 1st 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 buying an additional 94,892 shares in the last quarter. American Century Companies Inc. increased its stake in shares of GameStop by 6.5% during the second quarter. American Century Companies Inc. now owns 35,473 shares of the company's stock valued at $865,000 after buying an additional 2,162 shares during the period. Finally, 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 acquiring an additional 886 shares in the last quarter. Institutional investors own 29.21% of the company's stock.

Analyst Ratings Changes

Separately, Wedbush upgraded shares of GameStop to a "strong sell" rating in a report on Tuesday, July 1st. One investment analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company has a consensus rating of "Sell" and a consensus 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.