GameStop (NYSE:GME) Share Price Crosses Above 200-Day Moving Average - Time to Sell?

Key Points

• GameStop shares crossed above their 200-day moving average, trading as high as $24.21 versus the 200-day MA of $23.01 on Monday with about 4.61 million shares changing hands.
• Wall Street remains skeptical despite the technical move: the consensus rating is "Reduce" with an average target price of $13.50, although Weiss Ratings recently upgraded the stock from sell to hold.
• Insider activity is notable — CEO Ryan Cohen bought 500,000 shares at about $21.12 on Jan. 20, while insiders overall acquired 517,000 shares in the last 90 days and now own 8.58% of the company.

GameStop Corp. (NYSE:GME - Get Free Report)'s share price crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $23.01 and traded as high as $24.21. GameStop shares last traded at $24.1950, with a volume of 4,610,846 shares changing hands.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings upgraded shares of GameStop from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, February 2nd. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $13.50.

GameStop Stock Up 0.7%

The company has a market capitalization of $10.84 billion, a price-to-earnings ratio of 29.51 and a beta of 2.12. The stock's fifty day simple moving average is $22.69 and its two-hundred day simple moving average is $23.01. The company has a debt-to-equity ratio of 0.78, a current ratio of 10.39 and a quick ratio of 9.77.

GameStop (NYSE:GME - Get Free Report) last issued its earnings results on Tuesday, December 9th. The company reported $0.24 EPS for the quarter, beating analysts' consensus estimates of $0.20 by $0.04. The company had revenue of $821.00 million during the quarter, compared to the consensus estimate of $987.29 million. GameStop had a return on equity of 9.75% and a net margin of 11.08%.GameStop's quarterly revenue was down 4.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.06 earnings per share. On average, sell-side analysts predict that GameStop Corp. will post 0.08 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other GameStop news, General Counsel Mark Haymond Robinson sold 12,200 shares of GameStop stock in a transaction on Monday, January 12th. The stock was sold at an average price of $21.00, for a total transaction of $256,200.00. Following the sale, the general counsel owned 105,155 shares of the company's stock, valued at $2,208,255. The trade was a 10.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Ryan Cohen acquired 500,000 shares of the business's stock in a transaction that occurred on Tuesday, January 20th. The shares were bought at an average price of $21.12 per share, for a total transaction of $10,560,000.00. Following the completion of the purchase, the chief executive officer owned 37,847,842 shares of the company's stock, valued at approximately $799,346,423.04. This represents a 1.34% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have acquired 517,000 shares of company stock worth $10,925,150 and have sold 23,152 shares worth $480,059. 8.58% of the stock is currently owned by insiders.

Institutional Investors Weigh In On GameStop

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GME. Northwestern Mutual Wealth Management Co. increased its position in shares of GameStop by 308.9% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company's stock valued at $26,000 after purchasing an additional 732 shares during the period. City Holding Co. acquired a new position in GameStop during the third quarter worth about $30,000. EverSource Wealth Advisors LLC grew its holdings in GameStop by 226.6% during the second 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 bought a new stake in GameStop in the third quarter worth about $39,000. Finally, Los Angeles Capital Management LLC acquired a new stake in GameStop in the 4th quarter valued at about $39,000. Institutional investors own 29.21% of the company's stock.

About GameStop

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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