GameStop (NYSE:GME) Shares Gap Down - Should You Sell?

Shares of GameStop Corp. (NYSE:GME - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $30.15, but opened at $29.02. GameStop shares last traded at $28.74, with a volume of 4,296,599 shares traded.

Analyst Ratings Changes

Several research firms have recently weighed in on GME. Wedbush reaffirmed an "underperform" rating and set a $13.50 price objective on shares of GameStop in a research report on Wednesday. Wall Street Zen raised GameStop from a "sell" rating to a "hold" rating in a research report on Thursday, March 27th.

GameStop Price Performance

The firm has a 50-day moving average of $27.96 and a 200 day moving average of $27.35. The stock has a market capitalization of $9.92 billion, a price-to-earnings ratio of 123.20 and a beta of -0.69.

GameStop (NYSE:GME - Get Free Report) last released its quarterly earnings data on Tuesday, June 10th. The company reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.13. The firm had revenue of $732.40 million for the quarter, compared to analyst estimates of $754.23 million. GameStop had a return on equity of 2.11% and a net margin of 1.45%. The business's revenue for the quarter was down 16.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.12) earnings per share. On average, equities analysts forecast that GameStop Corp. will post 0.08 earnings per share for the current year.

Insiders Place Their Bets

In other GameStop news, insider Daniel William Moore sold 1,608 shares of the firm's stock in a transaction on Wednesday, April 2nd. The stock was sold at an average price of $22.53, for a total transaction of $36,228.24. Following the transaction, the insider now owns 29,777 shares in the company, valued at $670,875.81. This trade represents a 5.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Alain Attal purchased 10,000 shares of the firm's stock in a transaction dated Thursday, April 10th. The stock was acquired at an average price of $25.75 per share, for a total transaction of $257,500.00. Following the purchase, the director now owns 572,464 shares in the company, valued at approximately $14,740,948. The trade was a 1.78% increase in their position. The disclosure for this purchase can be found here. Insiders have purchased a total of 515,000 shares of company stock worth $11,140,200 in the last 90 days. Company insiders own 12.28% of the company's stock.

Institutional Investors Weigh In On GameStop

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. CIBC Asset Management Inc grew its position in GameStop by 5.7% during the 4th quarter. CIBC Asset Management Inc now owns 9,381 shares of the company's stock worth $294,000 after acquiring an additional 502 shares during the last quarter. Nomura Asset Management Co. Ltd. grew its position in GameStop by 32.3% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 2,130 shares of the company's stock worth $67,000 after acquiring an additional 520 shares during the last quarter. Securian Asset Management Inc. grew its position in GameStop by 1.8% during the 4th quarter. Securian Asset Management Inc. now owns 30,717 shares of the company's stock worth $963,000 after acquiring an additional 557 shares during the last quarter. Fifth Third Bancorp grew its position in GameStop by 10.3% during the 1st quarter. Fifth Third Bancorp now owns 6,227 shares of the company's stock worth $139,000 after acquiring an additional 579 shares during the last quarter. Finally, Prudential Financial Inc. grew its position in GameStop by 2.3% during the 4th quarter. Prudential Financial Inc. now owns 28,134 shares of the company's stock worth $882,000 after acquiring an additional 640 shares during the last quarter. Institutional investors own 29.21% of the company's stock.

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.