GameStop Sees Unusually High Options Volume (NYSE:GME)

Key Points

• Traders bought an unusually large number of calls on Friday — 364,134 call options, an 88% jump from the typical daily call volume of 193,639.
• GameStop shares jumped about 6.3% to $26.51 on heavy trading (17.74 million shares versus an average of 7.35 million), signaling elevated investor interest.
• The company reported an EPS beat of $0.49 vs. $0.37 but missed on revenue ($1.10B vs. $1.47B), and analysts carry a consensus "Reduce" rating with an average price target of $13.50.

GameStop Corp. (NYSE:GME - Get Free Report) was the target of unusually large options trading activity on Friday. Traders acquired 364,134 call options on the company. This is an increase of 88% compared to the typical daily volume of 193,639 call options.

GameStop Stock Up 6.3%

GameStop stock traded up $1.56 during mid-day trading on Friday, hitting $26.51. 17,743,448 shares of the company's stock were exchanged, compared to its average volume of 7,348,283. The company has a current ratio of 15.30, a quick ratio of 14.68 and a debt-to-equity ratio of 0.76. GameStop has a 1-year low of $19.93 and a 1-year high of $35.81. The stock has a 50 day moving average of $23.83 and a two-hundred day moving average of $22.85. The stock has a market cap of $11.89 billion, a P/E ratio of 35.35 and a beta of 1.86.

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

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Wall Street Zen downgraded shares of GameStop from a "hold" rating to a "sell" rating in a research report on Saturday, March 28th. Weiss Ratings raised 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 issued a Sell rating to the stock. Based on data from MarketBeat, GameStop currently has a consensus rating of "Reduce" and an average price target of $13.50.

Insiders Place Their Bets

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

Institutional Investors Weigh In On GameStop

Hedge funds have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. boosted its holdings in GameStop by 308.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company's stock valued at $26,000 after acquiring an additional 732 shares during the period. City Holding Co. bought a new stake in GameStop during the third quarter valued at about $30,000. EverSource Wealth Advisors LLC boosted its holdings in GameStop by 226.6% during the second quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company's stock valued at $31,000 after acquiring an additional 886 shares during the period. Advisory Services Network LLC bought a new stake in GameStop during the third quarter valued at about $39,000. Finally, Los Angeles Capital Management LLC bought a new stake in GameStop during the fourth quarter valued at about $39,000. 29.21% of the stock is currently owned by institutional investors.

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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