Insider Buying: GameStop (NYSE:GME) Director Purchases 5,000 Shares of Stock

Key Points

• GameStop director Lawrence Cheng bought 5,000 shares on Jan. 23 at an average price of $22.87 for $114,350, raising his holdings to 88,000 shares (a 6.02% increase).
• Shares traded at $23.34 (+1.5%) with a market cap of $10.46B; the company recently beat EPS estimates ($0.24 vs. $0.20) despite lower revenue, and the analyst consensus is a Sell with an average price target of $13.50.

GameStop Corp. (NYSE:GME - Get Free Report) Director Lawrence Cheng acquired 5,000 shares of the business's stock in a transaction dated Friday, January 23rd. The stock was purchased at an average price of $22.87 per share, for a total transaction of $114,350.00. Following the completion of the acquisition, the director owned 88,000 shares in the company, valued at approximately $2,012,560. This trade represents a 6.02% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

GameStop Trading Up 1.5%

Shares of NYSE:GME traded up $0.35 during trading on Monday, reaching $23.34. 2,289,837 shares of the stock were exchanged, compared to its average volume of 6,200,664. The firm's 50-day moving average price is $21.56 and its 200 day moving average price is $22.83. The firm has a market cap of $10.46 billion, a price-to-earnings ratio of 28.54 and a beta of -1.23. GameStop Corp. has a 12-month low of $19.93 and a 12-month high of $35.81. 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 announced its quarterly earnings results on Tuesday, December 9th. The company reported $0.24 earnings per share for the quarter, beating 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 firm had revenue of $821.00 million for the quarter, compared to analysts' expectations of $987.29 million. During the same period in the previous year, the company posted $0.06 earnings per share. GameStop's revenue was down 4.6% compared to the same quarter last year. On average, sell-side analysts anticipate that GameStop Corp. will post 0.08 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in GME. Bessemer Group Inc. grew its stake in shares of GameStop by 39.2% during the third quarter. Bessemer Group Inc. now owns 1,674 shares of the company's stock valued at $46,000 after buying an additional 471 shares during the last quarter. Thrivent Financial for Lutherans increased its stake in GameStop by 0.5% in the 2nd quarter. Thrivent Financial for Lutherans now owns 96,623 shares of the company's stock worth $2,357,000 after purchasing an additional 511 shares during the period. Wealthfront Advisers LLC lifted its position 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 purchasing an additional 576 shares during the last quarter. Public Employees Retirement System of Ohio boosted its stake 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 valued at $3,574,000 after purchasing an additional 578 shares during the period. Finally, Louisiana State Employees Retirement System boosted its stake in shares of GameStop by 0.5% during the second quarter. Louisiana State Employees Retirement System now owns 114,500 shares of the company's stock valued at $2,793,000 after purchasing an additional 600 shares during the period. Institutional investors own 29.21% of the company's stock.

Analyst Ratings Changes

Separately, Weiss Ratings lowered shares of GameStop from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, January 16th. Two analysts have rated the stock with a Sell rating, According to MarketBeat, the stock presently has an average rating of "Sell" and an average price target of $13.50.

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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