GameStop (NYSE:GME) Stock Price Crosses Above 200-Day Moving Average - What's Next?

Key Points

• GameStop crossed above its 200-day moving average (200-day = $22.91), trading as high as $24.83 and last at $24.17 on ~4.74M shares, signaling a potential technical shift.
• CEO Ryan Cohen purchased 500,000 shares at about $21.12 (~$10.56M) and a director also bought shares, with insiders adding 517,000 shares last quarter and owning 8.58%—a notable insider accumulation signal.
• Despite a Weiss upgrade to "hold," the consensus rating remains "Reduce" with a target price of $13.50; GameStop beat EPS estimates ($0.24 vs $0.20) but missed revenue ($821M vs $987M), with a market cap of $10.83B and a P/E of 29.47.

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 $22.91 and traded as high as $24.83. GameStop shares last traded at $24.1650, with a volume of 4,744,754 shares.

Analysts Set New Price Targets

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

GameStop Stock Down 2.6%

The stock has a market cap of $10.83 billion, a price-to-earnings ratio of 29.47 and a beta of 2.02. The business's 50 day moving average is $22.34 and its 200-day moving average is $22.91. The company has a debt-to-equity ratio of 0.78, a quick ratio of 9.77 and a current ratio of 10.39.

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

Insider Buying and Selling

In other news, Director Lawrence Cheng bought 5,000 shares of the firm's stock in a transaction dated Friday, January 23rd. The shares were acquired at an average price of $22.87 per share, for a total transaction of $114,350.00. Following the completion of the transaction, the director directly owned 88,000 shares in the company, valued at $2,012,560. The trade was a 6.02% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Ryan Cohen purchased 500,000 shares of the stock in a transaction dated Tuesday, January 20th. The stock was purchased at an average cost of $21.12 per share, for a total transaction of $10,560,000.00. Following the completion of the purchase, the chief executive officer directly owned 37,847,842 shares of the company's stock, valued at approximately $799,346,423.04. The trade was a 1.34% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders acquired 517,000 shares of company stock worth $10,925,150 and sold 23,152 shares worth $480,059. 8.58% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Northwestern Mutual Investment Management Company LLC lifted its position in shares of GameStop by 0.5% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 92,197 shares of the company's stock worth $1,851,000 after buying an additional 463 shares during the last quarter. Bessemer Group Inc. lifted its position in GameStop by 39.2% in the third quarter. Bessemer Group Inc. now owns 1,674 shares of the company's stock valued at $46,000 after acquiring an additional 471 shares during the last quarter. Thrivent Financial for Lutherans lifted its position in 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 acquiring an additional 511 shares during the last quarter. Wealthfront Advisers LLC boosted its stake in GameStop by 1.9% in the second quarter. Wealthfront Advisers LLC now owns 30,761 shares of the company's stock valued at $750,000 after acquiring an additional 576 shares in the last quarter. Finally, Public Employees Retirement System of Ohio grew its holdings in shares of GameStop by 0.4% during the third quarter. Public Employees Retirement System of Ohio now owns 131,002 shares of the company's stock worth $3,574,000 after purchasing an additional 578 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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