GameStop (NYSE:GME) Shares Gap Down Following Insider Selling

Key Points

• GameStop shares gapped down after insiders sold a total of 10,958 shares, with General Counsel Mark Haymond Robinson and insider Daniel William Moore each reducing their positions by approximately 3.81% and 5.46%, respectively.
• Wedbush downgraded GameStop to a "strong sell" rating, contributing to the stock's consensus rating of "sell" and a price target of $13.50.
• GameStop reported a $0.25 EPS for the most recent quarter, surpassing estimates, with revenues up by 21.8% year-over-year, indicating growth despite recent stock price declines.

Shares of GameStop Corp. (NYSE:GME - Get Free Report) gapped down before the market opened on Friday after an insider sold shares in the company. The stock had previously closed at $27.22, but opened at $26.36. GameStop shares last traded at $26.44, with a volume of 2,725,720 shares trading hands.

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

Wall Street Analyst Weigh In

Separately, Wedbush raised GameStop to a "strong sell" rating in a research report on Tuesday, July 1st. One research analyst has rated the stock with a Sell rating, According to MarketBeat, GameStop currently has a consensus rating of "Sell" and a consensus price target of $13.50.

GameStop Stock Down 3.1%

The stock has a market cap of $11.81 billion, a PE ratio of 36.17 and a beta of -0.86. The company has a debt-to-equity ratio of 0.80, a quick ratio of 10.79 and a current ratio of 11.37. The company's 50-day moving average price is $23.91 and its 200 day moving average price is $25.19.

GameStop (NYSE:GME - Get Free Report) last released its quarterly earnings results on Tuesday, September 9th. The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.19 by $0.06. GameStop had a net margin of 9.41% and a return on equity of 7.72%. The firm had revenue of $972.20 million during the quarter, compared to analyst estimates of $823.25 million. During the same quarter in the prior year, the firm earned $0.04 EPS. The business's revenue for the quarter was up 21.8% compared to the same quarter last year. As a group, analysts forecast that GameStop Corp. will post 0.08 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in GME. EverSource Wealth Advisors LLC grew its stake in shares of 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. Ameritas Advisory Services LLC bought a new position in shares of GameStop during the 2nd quarter valued at approximately $45,000. Hantz Financial Services Inc. grew its stake in shares of GameStop by 1,523.7% during the 2nd quarter. Hantz Financial Services Inc. now owns 2,127 shares of the company's stock valued at $52,000 after acquiring an additional 1,996 shares during the period. UMB Bank n.a. grew its stake in shares of GameStop by 100.6% during the 1st quarter. UMB Bank n.a. now owns 3,651 shares of the company's stock valued at $81,000 after acquiring an additional 1,831 shares during the period. Finally, US Bancorp DE grew its stake in shares of GameStop by 92.5% during the 1st quarter. US Bancorp DE now owns 3,726 shares of the company's stock valued at $83,000 after acquiring an additional 1,790 shares during the period. 29.21% of the stock is currently owned by institutional investors.

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.

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