GameStop (NYSE:GME) Reaches New 1-Year Low - Here's What Happened

Key Points

• GameStop shares fell to a new 52-week low of $18.32 during Tuesday trading, closing near $18.38, below both the 50-day and 200-day moving averages.
• The company’s latest quarterly results beat expectations, with EPS of $0.30 versus $0.16 expected and revenue of $835.3 million, up 14% year over year.
• Analyst sentiment remains broadly neutral, with a consensus “Hold” rating, while insiders sold a combined 18,125 shares worth about $406,587 over the last quarter.

Shares of GameStop Corp. (NYSE:GME - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $18.32 and last traded at $18.38, with a volume of 5711810 shares. The stock had previously closed at $18.66.

Analyst Ratings Changes

Several analysts recently commented on the company. Weiss Ratings reaffirmed a "hold (c)" rating on shares of GameStop in a 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 analyst has rated the stock with a Hold rating, According to MarketBeat.com, GameStop presently has a consensus rating of "Hold".

GameStop Stock Down 1.5%

The company's 50 day moving average price is $21.20 and its two-hundred day moving average price is $22.68. The firm has a market cap of $8.25 billion, a PE ratio of 13.92 and a beta of 1.79. The company has a current ratio of 12.40, a quick ratio of 11.91 and a debt-to-equity ratio of 0.71.

GameStop (NYSE:GME - Get Free Report) last issued its quarterly earnings data on Tuesday, June 2nd. The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.14. The firm had revenue of $835.30 million during the quarter, compared to the consensus estimate of $766.63 million. GameStop had a net margin of 20.45% and a return on equity of 13.75%. The company's revenue for the quarter was up 14.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.17 EPS.

Insider Buying and Selling at GameStop

In other GameStop news, insider Daniel William Moore sold 7,085 shares of the company'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 $158,562.30. Following the completion of the sale, the insider owned 115,125 shares in the company, valued at $2,576,497.50. This represents a 5.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, General Counsel Mark Haymond Robinson sold 7,083 shares of the firm'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 completion of the transaction, the general counsel directly owned 108,147 shares in the company, valued at $2,420,329.86. This trade represents a 6.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,125 shares of company stock worth $406,587 over the last quarter. 9.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. increased its holdings in GameStop by 308.9% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company's stock worth $26,000 after acquiring an additional 732 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake 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 acquiring an additional 886 shares during the period. Advisory Services Network LLC purchased a new position in GameStop during the third quarter valued at approximately $39,000. Los Angeles Capital Management LLC purchased a new position in GameStop during the fourth quarter valued at approximately $39,000. Finally, Rockefeller Capital Management L.P. boosted its position in shares of GameStop by 805.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 2,264 shares of the company's stock worth $45,000 after purchasing an additional 2,014 shares during the period. 29.21% of the stock is owned by hedge funds and other institutional investors.

GameStop Company 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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