GameStop (NYSE:GME) Share Price Crosses Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• GameStop shares crossed above their 200-day moving average, reaching $26.48 versus the $22.19 average, while last trading near $26.41.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $32, despite one analyst assigning an “Outperform” rating.
• GameStop met quarterly EPS expectations at $0.27 and exceeded revenue estimates, but quarterly revenue fell 18.7% year over year. Insider activity was broadly positive, with substantial purchases outweighing reported sales over the past 90 days.

GameStop Corp. (NYSE:GME - Get Free Report) shares crossed above its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $22.19 and traded as high as $26.48. GameStop shares last traded at $26.4070, with a volume of 9,113,396 shares traded.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on GME shares. Zacks Research raised shares of GameStop to a "hold" rating in a research report on Friday, October 16th. Yorkville Ives initiated coverage on shares of GameStop in a report on Wednesday, October 7th. They set an "outperform" rating and a $32.00 target price on the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of GameStop in a research report on Wednesday, July 29th. Finally, Wall Street Zen cut shares of GameStop from a "buy" rating to a "hold" rating in a research report on Monday, September 7th. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $32.00.

GameStop Trading Down 0.1%

The firm has a market capitalization of $13.32 billion, a PE ratio of 17.37 and a beta of 1.63. The company has a debt-to-equity ratio of 0.68, a quick ratio of 8.07 and a current ratio of 8.72. The firm has a fifty day moving average of $21.96 and a 200 day moving average of $22.19.

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. GameStop had a return on equity of 13.57% and a net margin of 25.16%. The firm had revenue of $790.20 million during the quarter, compared to analysts' expectations of $756.85 million. During the same quarter in the prior year, the business earned $0.31 EPS. GameStop's quarterly revenue was down 18.7% compared to the same quarter last year. Equities research analysts expect that GameStop Corp. will post 1.09 EPS for the current year.

Insider Activity at GameStop

In other news, General Counsel Mark Robinson sold 3,882 shares of the business's stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $25.42, for a total value of $98,680.44. Following the completion of the sale, the general counsel owned 93,012 shares of the company's stock, valued at approximately $2,364,365.04. The trade was a 4.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Nat Turner purchased 10,462 shares of the stock in a transaction dated Thursday, October 1st. The stock was purchased at an average price of $24.33 per share, with a total value of $254,540.46. Following the completion of the acquisition, the director directly owned 10,462 shares in the company, valued at approximately $254,540.46. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders acquired 4,232,772 shares of company stock valued at $98,994,742 and sold 33,955 shares valued at $870,667. Insiders own 9.50% of the company's stock.

Institutional Investors Weigh In On GameStop

Several institutional investors and hedge funds have recently bought and sold shares of GME. WINTON GROUP Ltd acquired a new stake in shares of GameStop during the 2nd quarter worth approximately $5,111,000. Sterling Investment Advisors Ltd. raised its stake in shares of GameStop by 33.8% during the second quarter. Sterling Investment Advisors Ltd. now owns 18,316 shares of the company's stock valued at $404,000 after purchasing an additional 4,627 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of GameStop in the 2nd quarter worth approximately $1,866,000. AlphaGrep UK Ltd bought a new position in GameStop during the 2nd quarter valued at $708,000. Finally, Public Employees Retirement System of Ohio bought a new position in GameStop during the second quarter valued at about $2,578,000. Institutional investors and hedge funds own 29.21% of the company's stock.

GameStop Company Profile

GameStop Corp. is a specialty retailer focused on video games, gaming hardware, accessories, and related entertainment products. Its merchandise includes new and pre-owned video game consoles and software, controllers, headsets, collectibles, toys, apparel, and trading cards. The company sells through its retail stores and e-commerce channels and also offers trade-in services for eligible games, devices, and accessories.

GameStop serves customers primarily in the United States, Canada, and Australia, with its physical-store network complemented by online sales.

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