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

Key Points

• GameStop stock crossed above its 200-day moving average, trading as high as $25.08 and last at $24.99 versus a 200‑day MA of $22.85 on volume of about 4.47 million shares.
• Analysts are mixed but cautious: Weiss Ratings bumped the stock to a Hold while Wall Street Zen cut it to a Sell, and MarketBeat shows an average rating of "Reduce" with a consensus price target of $13.50.
• Fundamentals are mixed — GameStop beat EPS estimates ($0.49 vs. $0.37) but missed revenue ($1.10B vs. $1.47B), has a market cap of $11.2B and strong liquidity ratios, and insiders have recently sold shares while owning about 8.6% of the company.

GameStop Corp. (NYSE:GME - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $22.85 and traded as high as $25.08. GameStop shares last traded at $24.9860, with a volume of 4,466,128 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Weiss Ratings raised shares of GameStop from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, February 2nd. Wall Street Zen downgraded shares of GameStop from a "hold" rating to a "sell" rating in a research report on Saturday, March 28th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus price target of $13.50.

GameStop Stock Performance

The company has a debt-to-equity ratio of 0.76, a quick ratio of 14.68 and a current ratio of 15.30. The stock has a market cap of $11.20 billion, a PE ratio of 33.31 and a beta of 1.86. The company's 50 day simple moving average is $23.83 and its 200 day simple moving average is $22.85.

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

Insider Activity

In other GameStop news, insider Daniel William Moore sold 7,210 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $22.94, for a total value of $165,397.40. Following the completion of the sale, the insider owned 101,014 shares in the company, valued at approximately $2,317,261.16. This trade represents a 6.66% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, General Counsel Mark Haymond Robinson sold 3,912 shares of the stock in a transaction dated Monday, April 13th. The shares were sold at an average price of $23.19, for a total transaction of $90,719.28. Following the completion of the sale, the general counsel owned 115,230 shares of the company's stock, valued at approximately $2,672,183.70. This trade represents a 3.28% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 18,331 shares of company stock valued at $421,491. Company insiders own 8.58% of the company's stock.

Institutional Investors Weigh In On GameStop

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. AGF Management Ltd. boosted its stake in GameStop by 69.3% in the third quarter. AGF Management Ltd. now owns 147,068 shares of the company's stock valued at $4,012,000 after acquiring an additional 60,182 shares during the last quarter. Van ECK Associates Corp boosted its stake in GameStop by 58.3% in the third quarter. Van ECK Associates Corp now owns 3,098,538 shares of the company's stock valued at $84,528,000 after acquiring an additional 1,141,215 shares during the last quarter. South Dakota Investment Council purchased a new position in GameStop in the third quarter valued at about $2,095,000. Clear Street Group Inc. purchased a new position in GameStop in the third quarter valued at about $29,971,000. Finally, Flow Traders U.S. LLC boosted its stake in GameStop by 189.1% in the third quarter. Flow Traders U.S. LLC now owns 126,543 shares of the company's stock valued at $3,452,000 after acquiring an additional 82,772 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.

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