GameStop (NYSE:GME) Stock Sees Heavy Call Option Buying

Key Points

• GameStop saw unusually heavy call-option activity, with 376,897 calls purchased—about 126% above its average daily volume.
• Insider activity was strongly net positive over the past three months: insiders bought 3.39 million shares worth $76.2 million and sold 18,475 shares, while insiders own 9.5% of the company.
• GME shares traded up 2.8% at $25.27, although analysts remain cautious, with the stock holding a consensus “Hold” rating. Quarterly revenue fell 18.7% year over year despite earnings meeting estimates.

GameStop Corp. (NYSE:GME - Get Free Report) saw unusually large options trading on Friday. Investors bought 376,897 call options on the company. This is an increase of approximately 126% compared to the average daily volume of 166,426 call options.

Insider Buying and Selling

In related news, Director Alain Attal purchased 17,500 shares of the business's stock in a transaction that occurred on Monday, September 21st. The shares were acquired at an average price of $22.97 per share, for a total transaction of $401,975.00. Following the completion of the acquisition, the director directly owned 618,964 shares in the company, valued at approximately $14,217,603.08. The trade was a 2.91% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Daniel Moore sold 7,297 shares of the business's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $24.26, for a total transaction of $177,025.22. Following the transaction, the insider directly owned 107,828 shares in the company, valued at approximately $2,615,907.28. The trade was a 6.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have bought 3,388,642 shares of company stock valued at $76,220,115 and have sold 18,475 shares valued at $452,707. Insiders own 9.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in GME. Rockefeller Capital Management L.P. boosted its holdings in GameStop by 805.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 2,264 shares of the company's stock worth $45,000 after purchasing an additional 2,014 shares during the last quarter. Global Assets Advisory LLC purchased a new stake in GameStop during the 1st quarter valued at $60,000. Caitong International Asset Management Co. Ltd purchased a new stake in GameStop during the 4th quarter valued at $54,000. CX Institutional raised its stake in GameStop by 537.1% during the 2nd quarter. CX Institutional now owns 3,313 shares of the company's stock valued at $73,000 after buying an additional 2,793 shares during the last quarter. Finally, Lido Advisors LLC bought a new position in shares of GameStop during the 1st quarter valued at $210,000. 29.21% of the stock is owned by hedge funds and other institutional investors.

GameStop Trading Up 2.8%

Shares of NYSE:GME opened at $25.27 on Friday. The company has a market cap of $12.75 billion, a P/E ratio of 16.63 and a beta of 1.63. The company has a debt-to-equity ratio of 0.68, a current ratio of 8.72 and a quick ratio of 8.07. GameStop has a 1 year low of $17.79 and a 1 year high of $26.88. The stock's fifty day moving average price is $20.74 and its 200-day moving average price is $21.95.

GameStop (NYSE:GME - Get Free Report) last released its quarterly earnings data on Tuesday, September 8th. The company reported $0.27 EPS for the quarter, hitting the consensus estimate of $0.27. GameStop had a return on equity of 13.57% and a net margin of 25.16%.The company had revenue of $790.20 million during the quarter, compared to the consensus estimate of $756.85 million. During the same period last year, the company earned $0.31 EPS. GameStop's revenue for the quarter was down 18.7% on a year-over-year basis.

Analyst Ratings Changes

Several equities analysts recently issued reports on the stock. Weiss Ratings reiterated a "hold (c)" rating on shares of GameStop in a research report on Wednesday, July 29th. Wall Street Zen cut GameStop from a "buy" rating to a "hold" rating in a research report on Monday, September 7th. One investment analyst has rated the stock with a Hold rating, According to MarketBeat.com, GameStop presently has a consensus rating of "Hold".

GameStop Company Profile

GameStop Corp. is a multichannel retailer focused on video game products and related entertainment merchandise. The company sells new and pre-owned video game hardware, software, accessories and consumer electronics through its retail stores and e-commerce websites. Its product offerings include gaming consoles, controllers, headsets, games and other equipment for major platforms.

GameStop also sells collectibles, apparel, toys, trading cards and other products connected to video games and popular culture.

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