Investors Buy Large Volume of GameStop Call Options (NYSE:GME)

GameStop Corp. (NYSE:GME) saw unusually large options trading on Friday. Stock investors acquired 303,893 call options on the stock. This is an increase of 66% compared to the average volume of 182,541 call options.

GameStop Stock Performance

Shares of GameStop stock opened at $22.64 on Friday. The company has a quick ratio of 10.79, a current ratio of 11.37 and a debt-to-equity ratio of 0.80. The stock’s fifty day moving average is $23.17 and its two-hundred day moving average is $24.29. GameStop has a 52 week low of $19.93 and a 52 week high of $35.81. The company has a market capitalization of $10.14 billion, a PE ratio of 31.01 and a beta of -1.00.

GameStop (NYSE:GME) last issued its earnings results on Tuesday, September 9th. The company reported $0.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.19 by $0.06. The firm had revenue of $972.20 million during the quarter, compared to analyst estimates of $823.25 million. GameStop had a net margin of 9.41% and a return on equity of 7.72%. The business’s revenue was up 21.8% on a year-over-year basis. During the same period in the previous year, the firm earned $0.04 earnings per share. As a group, analysts expect that GameStop will post 0.08 earnings per share for the current year.

Insider Buying and Selling

In other news, General Counsel Mark Haymond Robinson sold 4,449 shares of the firm’s stock in a transaction that occurred on Thursday, October 2nd. The stock was sold at an average price of $27.58, for a total value of $122,703.42. Following the completion of the sale, the general counsel directly owned 112,302 shares of the company’s stock, valued at $3,097,289.16. This trade represents a 3.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Daniel William Moore sold 6,509 shares of GameStop stock in a transaction that occurred on Thursday, October 2nd. The stock was sold at an average price of $27.58, for a total value of $179,518.22. Following the completion of the transaction, the insider owned 112,620 shares of the company’s stock, valued at approximately $3,106,059.60. This trade represents a 5.46% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 11,788 shares of company stock worth $321,046. Company insiders own 8.58% of the company’s stock.

Institutional Investors Weigh In On GameStop

Large investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. increased its position in shares of GameStop by 308.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company’s stock worth $26,000 after acquiring an additional 732 shares during the period. City Holding Co. bought a new position in GameStop in the third quarter worth approximately $30,000. EverSource Wealth Advisors LLC grew its stake in GameStop by 226.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company’s stock worth $31,000 after purchasing an additional 886 shares in the last quarter. Advisory Services Network LLC purchased a new position in GameStop during the 3rd quarter worth $39,000. Finally, Ameritas Advisory Services LLC bought a new stake in GameStop during the 2nd quarter valued at $45,000. 29.21% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Separately, Weiss Ratings reissued a “hold (c-)” rating on shares of GameStop in a research note on Wednesday, October 8th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $13.50.

About GameStop

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.