GameStop (NYSE:GME) Shares Pass Above 200 Day Moving Average - Should You Sell?

Key Points

• GameStop crossed above its 200-day moving average of $22.81, trading as high as $25.74 and last at $25.65 on volume of about 9.17 million shares.
• Analyst sentiment is negative with a consensus rating of Reduce and a consensus price target of $13.50; Wall Street Zen recently downgraded GME to "sell" while Weiss moved it to "hold."
• Fundamentals are mixed: GameStop beat EPS estimates ($0.49 vs. $0.37) but missed revenue expectations ($1.10B vs. $1.47B), shows very high liquidity ratios (quick ratio 14.68, current ratio 15.30), and insiders have been net sellers recently (18,331 shares sold in the last 90 days).

GameStop Corp. (NYSE:GME - Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $22.81 and traded as high as $25.74. GameStop shares last traded at $25.6540, with a volume of 9,173,777 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on GME. Wall Street Zen cut GameStop from a "hold" rating to a "sell" rating in a report on Saturday, March 28th. Weiss Ratings raised shares of GameStop from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, February 2nd. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $13.50.

GameStop Stock Up 4.9%

The firm has a market cap of $11.50 billion, a price-to-earnings ratio of 34.21 and a beta of 1.86. The firm has a 50 day moving average of $23.67 and a 200 day moving average of $22.81. The company has a quick ratio of 14.68, a current ratio of 15.30 and a debt-to-equity ratio of 0.76.

GameStop (NYSE:GME - Get Free Report) last posted its quarterly earnings results on Tuesday, March 24th. The company reported $0.49 EPS for the quarter, topping analysts' consensus estimates of $0.37 by $0.12. The business had revenue of $1.10 billion during the quarter, compared to analysts' expectations of $1.47 billion. GameStop had a net margin of 11.53% and a return on equity of 12.47%.

Insider Transactions at GameStop

In related news, General Counsel Mark Haymond Robinson sold 7,209 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $22.94, for a total value of $165,374.46. Following the transaction, the general counsel directly owned 97,946 shares in the company, valued at $2,246,881.24. This trade represents a 6.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Daniel William Moore sold 7,210 shares of GameStop stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $22.94, for a total transaction of $165,397.40. Following the completion of the sale, the insider directly owned 101,014 shares of the company's stock, valued at approximately $2,317,261.16. The trade was a 6.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 18,331 shares of company stock valued at $421,491 over the last ninety days. 8.58% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in GME. Northwestern Mutual Investment Management Company LLC boosted its stake in GameStop by 0.5% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 92,197 shares of the company's stock valued at $1,851,000 after purchasing an additional 463 shares during the last quarter. Bessemer Group Inc. raised its stake in shares of GameStop by 39.2% in the third quarter. Bessemer Group Inc. now owns 1,674 shares of the company's stock worth $46,000 after purchasing an additional 471 shares during the last quarter. Thrivent Financial for Lutherans lifted its holdings in shares of GameStop by 0.5% in the second quarter. Thrivent Financial for Lutherans now owns 96,623 shares of the company's stock valued at $2,357,000 after purchasing an additional 511 shares in the last quarter. Public Employees Retirement System of Ohio lifted its holdings in shares of GameStop by 0.4% in the third quarter. Public Employees Retirement System of Ohio now owns 131,002 shares of the company's stock valued at $3,574,000 after purchasing an additional 578 shares in the last quarter. Finally, Panagora Asset Management Inc. boosted its position in shares of GameStop by 4.5% during the fourth quarter. Panagora Asset Management Inc. now owns 13,692 shares of the company's stock valued at $275,000 after buying an additional 594 shares during the last quarter. 29.21% of the stock is currently owned by institutional investors and hedge funds.

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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