GameStop (NYSE:GME) Shares Gap Down Following Insider Selling

Shares of GameStop Corp. (NYSE:GME) gapped down prior to trading on Friday after an insider sold shares in the company. The stock had previously closed at $27.22, but opened at $26.36. GameStop shares last traded at $26.44, with a volume of 2,725,720 shares changing hands.

Specifically, General Counsel Mark Haymond Robinson sold 4,449 shares of the company’s stock in a transaction that occurred on Thursday, October 2nd. The shares were sold at an average price of $27.58, for a total value of $122,703.42. Following the transaction, the general counsel owned 112,302 shares in the company, valued at approximately $3,097,289.16. This represents a 3.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Daniel William Moore sold 6,509 shares of the company’s stock in a transaction that occurred on Thursday, October 2nd. The shares were sold at an average price of $27.58, for a total transaction of $179,518.22. Following the completion of the transaction, the insider owned 112,620 shares in the company, valued at approximately $3,106,059.60. This represents a 5.46% decrease in their position. The disclosure for this sale can be found here.

Analyst Ratings Changes

Several research analysts have weighed in on GME shares. Weiss Ratings reiterated a “hold (c-)” rating on shares of GameStop in a research note on Saturday, September 27th. Wedbush upgraded shares of GameStop to a “strong sell” rating in a research note on Tuesday, July 1st. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Reduce” and an average price target of $13.50.

GameStop Trading Down 6.7%

The company’s 50 day moving average price is $23.95 and its 200 day moving average price is $25.20. The company has a market cap of $11.37 billion, a price-to-earnings ratio of 34.79 and a beta of -0.86. The company has a debt-to-equity ratio of 0.80, a quick ratio of 10.79 and a current ratio of 11.37.

GameStop (NYSE:GME) last announced its quarterly earnings results on Tuesday, September 9th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.19 by $0.06. GameStop had a net margin of 9.41% and a return on equity of 7.72%. The company had revenue of $972.20 million for the quarter, compared to analyst estimates of $823.25 million. During the same quarter in the prior year, the business posted $0.04 EPS. GameStop’s quarterly revenue was up 21.8% on a year-over-year basis. Research analysts anticipate that GameStop Corp. will post 0.08 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Marshall Wace LLP grew its stake in GameStop by 347.7% in the 2nd quarter. Marshall Wace LLP now owns 6,657,678 shares of the company’s stock valued at $162,381,000 after buying an additional 5,170,741 shares during the last quarter. Invesco Ltd. grew its stake in GameStop by 486.6% in the 2nd quarter. Invesco Ltd. now owns 3,858,024 shares of the company’s stock valued at $94,097,000 after buying an additional 3,200,321 shares during the last quarter. Norges Bank acquired a new position in GameStop in the 2nd quarter valued at $76,701,000. Alyeska Investment Group L.P. grew its stake in GameStop by 895.4% in the 1st quarter. Alyeska Investment Group L.P. now owns 2,641,427 shares of the company’s stock valued at $58,957,000 after buying an additional 2,376,051 shares during the last quarter. Finally, Clear Street LLC acquired a new position in GameStop in the 2nd quarter valued at $57,433,000. Institutional investors and hedge funds own 29.21% of the company’s stock.

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.