GameStop (NYSE:GME) Hits New 52-Week High - Should You Buy?

Key Points

• GameStop shares reached a new 52-week high, trading as high as $26.95 and closing around $26.74, with a market capitalization of approximately $13.54 billion.
• Analysts maintain a cautious outlook, with GameStop carrying a consensus “Hold” rating after one research firm downgraded the stock from “Buy.”
• Recent quarterly results met EPS expectations and exceeded revenue estimates, while insiders—including CEO Ryan Cohen—made significant purchases totaling more than $76 million over the past 90 days.

GameStop Corp. (NYSE:GME - Get Free Report) shares reached a new 52-week high during trading on Monday. The stock traded as high as $26.95 and last traded at $26.74, with a volume of 4,570,120 shares trading hands. The stock had previously closed at $26.56.

Analyst Ratings Changes

A number of research analysts recently weighed in on the company. Weiss Ratings reaffirmed a "hold (c)" rating on shares of GameStop in a report on Wednesday, July 29th. Wall Street Zen lowered shares of GameStop from a "buy" rating to a "hold" rating in a research report on Monday, September 7th. One research analyst has rated the stock with a Hold rating. According to MarketBeat.com, GameStop currently has a consensus rating of "Hold".

GameStop Stock Up 1.0%

The company has a quick ratio of 8.07, a current ratio of 8.72 and a debt-to-equity ratio of 0.68. The company has a market cap of $13.54 billion, a PE ratio of 17.63 and a beta of 1.63. The firm's fifty day simple moving average is $20.84 and its 200-day simple moving average is $21.98.

GameStop (NYSE:GME - Get Free Report) last released its quarterly earnings results on Tuesday, September 8th. The company reported $0.27 earnings per share for the quarter, hitting analysts' consensus estimates of $0.27. The company had revenue of $790.20 million during the quarter, compared to analysts' expectations of $756.85 million. GameStop had a return on equity of 13.57% and a net margin of 25.16%. The business's revenue for the quarter was down 18.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.31 earnings per share.

Insiders Place Their Bets

In other GameStop news, CEO Ryan Cohen bought 700,000 shares of the company's stock in a transaction that occurred on Friday, October 2nd. The stock was purchased at an average cost of $24.41 per share, for a total transaction of $17,087,000.00. Following the completion of the purchase, the chief executive officer owned 41,648,522 shares of the company's stock, valued at $1,016,640,422.02. This trade represents a 1.71% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Alain Attal bought 17,500 shares of GameStop 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 transaction, the director directly owned 618,964 shares of the company's stock, valued at $14,217,603.08. This trade represents a 2.91% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, 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. Company insiders own 9.50% of the company's stock.

Institutional Investors Weigh In On GameStop

Hedge funds have recently modified their holdings of the stock. Signal Advisors Wealth LLC lifted its stake in shares of GameStop by 1.2% in the 1st quarter. Signal Advisors Wealth LLC now owns 63,056 shares of the company's stock valued at $1,453,000 after purchasing an additional 724 shares in the last quarter. Wealthfront Advisers LLC increased its position in GameStop by 3.2% during the 1st quarter. Wealthfront Advisers LLC now owns 25,935 shares of the company's stock worth $598,000 after purchasing an additional 800 shares in the last quarter. KBC Group NV increased its position in GameStop by 12.9% during the 1st quarter. KBC Group NV now owns 13,024 shares of the company's stock worth $300,000 after purchasing an additional 1,489 shares in the last quarter. State of Michigan Retirement System raised its holdings in GameStop by 1.8% in the first quarter. State of Michigan Retirement System now owns 99,200 shares of the company's stock valued at $2,286,000 after buying an additional 1,800 shares during the period. Finally, Kestra Advisory Services LLC raised its holdings in GameStop by 11.3% in the first quarter. Kestra Advisory Services LLC now owns 18,359 shares of the company's stock valued at $423,000 after buying an additional 1,863 shares during the period. 29.21% of the stock is owned by institutional investors and hedge funds.

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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