GameStop (NYSE:GME) Sets New 52-Week Low - What's Next?

Key Points

• GameStop shares fell 12.3%, reaching a new 52-week low of $19.25 and trading below both their 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but leans neutral: Weiss Ratings reiterated a “hold” rating, Wall Street Zen upgraded the stock to “buy,” and the overall consensus is “Hold.”
• Despite the stock decline, GameStop reported a quarterly earnings beat, with EPS of $0.30 versus the $0.16 estimate and revenue of $835.3 million, up 14% year over year; insiders have sold about $406,600 of shares over the past 90 days.

Shares of GameStop Corp. (NYSE:GME - Get Free Report) hit a new 52-week low on Monday . The company traded as low as $19.25 and last traded at $19.2630, with a volume of 4560683 shares trading hands. The stock had previously closed at $21.72.

Analysts Set New Price Targets

Several research firms have issued reports on GME. Weiss Ratings reiterated a "hold (c)" rating on shares of GameStop in a research note on Wednesday. Wall Street Zen raised GameStop from a "hold" rating to a "buy" rating in a research report on Sunday, June 14th. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat.com, GameStop presently has a consensus rating of "Hold".

GameStop Trading Down 12.3%

The stock's fifty day simple moving average is $21.83 and its 200-day simple moving average is $22.93. The firm has a market cap of $8.54 billion, a PE ratio of 14.43 and a beta of 1.79. The company has a debt-to-equity ratio of 0.71, a current ratio of 12.40 and a quick ratio of 11.91.

GameStop (NYSE:GME - Get Free Report) last posted its quarterly earnings data on Tuesday, June 2nd. The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.16 by $0.14. The business 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 business's revenue for the quarter was up 14.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.17 earnings per share.

Insider Transactions at GameStop

In other GameStop news, General Counsel Mark Haymond Robinson sold 3,957 shares of GameStop stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $22.62, for a total transaction of $89,507.34. Following the completion of the sale, the general counsel owned 104,190 shares of the company's stock, valued at approximately $2,356,777.80. The trade was a 3.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Daniel William Moore sold 7,085 shares of the business's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $22.38, for a total value of $158,562.30. Following the sale, the insider owned 115,125 shares in the company, valued at approximately $2,576,497.50. The trade was a 5.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 18,125 shares of company stock valued at $406,587. 9.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On GameStop

A number of large investors have recently bought and sold shares of the company. 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 buying an additional 732 shares during the period. EverSource Wealth Advisors LLC lifted 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 valued at $31,000 after acquiring an additional 886 shares during the period. Advisory Services Network LLC purchased a new stake in shares of GameStop in the 3rd quarter valued at $39,000. Los Angeles Capital Management LLC purchased a new stake in shares of GameStop in the 4th quarter valued at $39,000. Finally, Rockefeller Capital Management L.P. boosted its holdings in shares of GameStop by 805.6% in 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 last quarter. Hedge funds and other institutional investors own 29.21% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.