GameStop (NYSE:GME) Stock Price Up 4.9% - What's Next?

Key Points

• GameStop's stock rose 4.9% mid-day on Friday, trading at $26.51, but experienced a significant drop in trading volume, decreasing to 2.7 million shares from its usual average of 10.8 million shares.
• Wedbush has downgraded GameStop to a "strong sell" rating, with an average consensus price target of $13.50, indicating a negative outlook from analysts.
• The company reported earnings of $0.25 per share for the last quarter, exceeding expectations and reflecting a 21.8% year-over-year revenue increase to $972.2 million.

GameStop Corp. (NYSE:GME - Get Free Report)'s stock price rose 4.9% during mid-day trading on Friday . The stock traded as high as $26.80 and last traded at $26.51. Approximately 2,716,074 shares were traded during mid-day trading, a decline of 75% from the average daily volume of 10,821,355 shares. The stock had previously closed at $25.27.

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.com, the company presently has an average rating of "Sell" and a consensus price target of $13.50.

GameStop Stock Up 4.0%

The firm has a market capitalization of $11.76 billion, a PE ratio of 35.89 and a beta of -0.93. The company has a fifty day moving average price of $23.58 and a 200-day moving average price of $25.03. The company has a debt-to-equity ratio of 0.80, a quick ratio of 10.79 and a current ratio of 11.37.

GameStop's stock is going to split before the market opens on Friday, October 3rd. The 11-10 split was recently announced. The newly minted shares will be issued to shareholders after the closing bell on Thursday, October 2nd.

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

Insider Buying and Selling at GameStop

In other news, General Counsel Mark Haymond Robinson sold 11,055 shares of the business's stock in a transaction that occurred on Wednesday, July 23rd. The stock was sold at an average price of $24.18, for a total transaction of $267,309.90. Following the transaction, the general counsel owned 116,781 shares of the company's stock, valued at approximately $2,823,764.58. The trade was a 8.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Over the last 90 days, insiders sold 13,905 shares of company stock worth $334,509. Insiders own 8.58% of the company's stock.

Hedge Funds Weigh In On GameStop

Several hedge funds have recently bought and sold shares of GME. Forum Financial Management LP bought a new position in GameStop in the 4th quarter valued at $206,000. California State Teachers Retirement System grew its position in GameStop by 3.6% in the 4th quarter. California State Teachers Retirement System now owns 394,588 shares of the company's stock valued at $12,366,000 after acquiring an additional 13,576 shares during the last quarter. GAMMA Investing LLC grew its position in GameStop by 3,692.6% in the 1st quarter. GAMMA Investing LLC now owns 135,170 shares of the company's stock valued at $3,017,000 after acquiring an additional 131,606 shares during the last quarter. Selway Asset Management lifted its holdings in shares of GameStop by 57.9% in the 1st quarter. Selway Asset Management now owns 45,000 shares of the company's stock worth $1,004,000 after buying an additional 16,500 shares during the period. Finally, First National Corp MA ADV lifted its holdings in shares of GameStop by 96.9% in the 1st quarter. First National Corp MA ADV now owns 30,863 shares of the company's stock worth $689,000 after buying an additional 15,185 shares during the period. Institutional investors own 29.21% of the company's stock.

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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