GameStop (NYSE:GME) Posts Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• GameStop beat earnings estimates, reporting EPS of $0.24 versus the consensus $0.20, with a return on equity of 7.72% and a net margin of 9.41%.
• The stock traded down to $23.16 on Tuesday with about 5.15M shares, giving a market cap of $10.37 billion, a P/E of 31.73 and a 52‑week range of $19.93–$35.81.
• Analyst sentiment remains weak—MarketBeat shows a consensus rating of "Reduce" with a $13.50 price target—and insiders disclosed sales on Oct. 2 that reduced their holdings (insiders own 8.58% of the stock).

GameStop (NYSE:GME - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.20 by $0.04, Zacks reports. GameStop had a return on equity of 7.72% and a net margin of 9.41%.

GameStop Price Performance

Shares of GME traded down $0.19 on Tuesday, hitting $23.16. The company's stock had a trading volume of 5,149,311 shares, compared to its average volume of 9,995,112. The company has a market capitalization of $10.37 billion, a PE ratio of 31.73 and a beta of -1.30. GameStop has a fifty-two week low of $19.93 and a fifty-two week high of $35.81. The company has a 50 day moving average price of $22.75 and a 200 day moving average price of $23.99. The company has a debt-to-equity ratio of 0.80, a current ratio of 11.37 and a quick ratio of 10.79.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a "hold (c)" rating on shares of GameStop in a research note on Thursday. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, GameStop currently has a consensus rating of "Reduce" and a consensus price target of $13.50.

Insiders Place Their Bets

In other GameStop news, General Counsel Mark Haymond Robinson sold 4,449 shares of the business's stock in a transaction on Thursday, October 2nd. The stock was sold at an average price of $27.58, for a total value of $122,703.42. Following the transaction, the general counsel owned 112,302 shares of the company's stock, valued at approximately $3,097,289.16. The trade was a 3.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Daniel William Moore sold 6,509 shares of the firm's stock in a transaction on Thursday, October 2nd. The shares were sold at an average price of $27.58, for a total value of $179,518.22. Following the completion of the sale, the insider owned 112,620 shares of the company's stock, valued at approximately $3,106,059.60. This trade represents a 5.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 8.58% of the stock is currently owned by insiders.

Hedge Funds Weigh In On GameStop

A number of institutional investors have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. lifted its position in shares of GameStop by 308.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company's stock worth $26,000 after purchasing an additional 732 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in GameStop by 226.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company's stock worth $31,000 after buying an additional 886 shares in the last quarter. Advisory Services Network LLC bought a new position in GameStop in the 3rd quarter valued at $39,000. Danske Bank A S bought a new position in GameStop in the 3rd quarter valued at $87,000. Finally, Raymond James Financial Inc. acquired a new stake in shares of GameStop in the 2nd quarter valued at $165,000. 29.21% of the stock is owned by institutional investors.

About GameStop

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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