GameStop (NYSE:GME) Shares Gap Up After Strong Earnings

GameStop Corp. (NYSE:GME)’s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $23.59, but opened at $25.21. GameStop shares last traded at $25.33, with a volume of 14,161,504 shares trading hands.

The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.06. The business had revenue of $972.20 million during the quarter, compared to analysts’ expectations of $823.25 million. GameStop had a net margin of 9.41% and a return on equity of 7.83%. The company’s revenue for the quarter was up 21.8% on a year-over-year basis. During the same period in the previous year, the company earned $0.04 EPS.

Analysts Set New Price Targets

Separately, Wedbush raised shares of GameStop to a “strong sell” rating in a research report on Tuesday, July 1st. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company has a consensus rating of “Sell” and an average price target of $13.50.

Insider Buying and Selling

In related news, General Counsel Mark Haymond Robinson sold 11,055 shares of GameStop stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $24.18, for a total transaction of $267,309.90. Following the sale, the general counsel directly owned 116,781 shares in the company, valued at $2,823,764.58. This trade represents a 8.65% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In the last quarter, insiders have sold 13,905 shares of company stock worth $334,509. 8.58% of the stock is owned by company insiders.

Institutional Investors Weigh In On GameStop

Hedge funds and other institutional investors have recently bought and sold shares of the stock. New York State Teachers Retirement System raised its stake in GameStop by 10.7% during the 1st quarter. New York State Teachers Retirement System now owns 311,864 shares of the company’s stock worth $6,961,000 after acquiring an additional 30,200 shares in the last quarter. Exchange Traded Concepts LLC acquired a new position in GameStop in the first quarter valued at $465,000. Virtu Financial LLC acquired a new position in GameStop in the first quarter valued at $1,442,000. California State Teachers Retirement System increased its stake in GameStop by 3.6% in the fourth quarter. California State Teachers Retirement System now owns 394,588 shares of the company’s stock valued at $12,366,000 after purchasing an additional 13,576 shares during the period. Finally, Soviero Asset Management LP acquired a new position in GameStop in the fourth quarter valued at $2,037,000. 29.21% of the stock is currently owned by institutional investors and hedge funds.

GameStop Trading Up 3.5%

The company has a debt-to-equity ratio of 0.30, a current ratio of 8.39 and a quick ratio of 7.89. The company has a market capitalization of $10.92 billion, a price-to-earnings ratio of 33.44 and a beta of -0.93. The business’s 50 day simple moving average is $23.01 and its 200 day simple moving average is $24.92.

GameStop Company Profile

GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads.