Stock Traders Purchase Large Volume of GameStop Call Options (NYSE:GME)

GameStop Corp. (NYSE:GME) was the recipient of some unusual options trading on Thursday. Traders acquired 292,154 call options on the company. This represents an increase of 64% compared to the average daily volume of 178,588 call options.

GameStop Price Performance

GameStop stock opened at $23.10 on Friday. The company has a market capitalization of $10.35 billion, a price-to-earnings ratio of 28.17 and a beta of -1.23. The company has a current ratio of 10.39, a quick ratio of 9.77 and a debt-to-equity ratio of 0.78. GameStop has a 12 month low of $19.93 and a 12 month high of $35.81. The stock’s 50 day moving average is $21.51 and its 200-day moving average is $22.83.

GameStop (NYSE:GME) last released its quarterly earnings results on Tuesday, December 9th. The company reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.04. The business had revenue of $821.00 million during the quarter, compared to the consensus estimate of $987.29 million. GameStop had a return on equity of 9.75% and a net margin of 11.08%.The firm’s quarterly revenue was down 4.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.06 EPS. Equities research analysts expect that GameStop will post 0.08 EPS for the current year.

Insider Buying and Selling

In related news, CEO Ryan Cohen acquired 500,000 shares of the business’s stock in a transaction dated Tuesday, January 20th. The stock was bought at an average price of $21.12 per share, with a total value of $10,560,000.00. Following the acquisition, the chief executive officer owned 37,847,842 shares in the company, valued at $799,346,423.04. This represents a 1.34% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Alain Attal bought 12,000 shares of the stock in a transaction that occurred on Tuesday, January 20th. The shares were purchased at an average price of $20.90 per share, for a total transaction of $250,800.00. Following the completion of the acquisition, the director owned 596,464 shares of the company’s stock, valued at $12,466,097.60. The trade was a 2.05% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold 23,152 shares of company stock worth $480,059 over the last 90 days. Company insiders own 8.58% of the company’s stock.

Institutional Trading of GameStop

A number of institutional investors have recently bought and sold shares of GME. Northwestern Mutual Wealth Management Co. lifted its position in 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 purchasing an additional 732 shares during the period. City Holding Co. bought a new position in GameStop in the 3rd quarter valued at about $30,000. EverSource Wealth Advisors LLC raised its position in shares of GameStop by 226.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company’s stock valued at $31,000 after buying an additional 886 shares in the last quarter. Advisory Services Network LLC bought a new stake in shares of GameStop during the 3rd quarter worth approximately $39,000. Finally, Ameritas Advisory Services LLC bought a new stake in shares of GameStop during the 2nd quarter worth approximately $45,000. Institutional investors own 29.21% of the company’s stock.

GameStop News Summary

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: CEO Ryan Cohen purchased 500,000 shares (~$10.56M) on Jan. 20, increasing his stake and signaling management confidence — a primary catalyst for the rally. Read More.
• Positive Sentiment: Reports indicate Cohen bought another 500k shares this week (1M total), which markets interpreted as further commitment from the founder‑chairman and triggered additional buying. Read More.
• Positive Sentiment: Director Alain Attal added 12,000 shares at ~ $20.90, a smaller insider buy that reinforces management alignment with shareholders. Read More.
• Positive Sentiment: Unusual options flow: ~292,154 call contracts traded (about +64% vs typical daily call volume), indicating speculative bullish positioning that can amplify near‑term upside.
• Neutral Sentiment: Coverage on experiential initiatives (e.g., a Silent Hill tie‑in) highlights potential traffic/branding upside but remains unproven as a near‑term revenue driver. Read More.
• Negative Sentiment: GameStop plans to close roughly 470 U.S. stores by month‑end (including ~30 in New York), underscoring ongoing brick‑and‑mortar weakness and possible one‑time costs or lost sales. Read More.
• Negative Sentiment: Analyst/ratings pressure persists (Weiss Ratings downgrade and a consensus “Sell” with a low average target), a reminder that fundamentals and revenue trends still pose medium‑term downside risk.

Analysts Set New Price Targets

Separately, Weiss Ratings downgraded shares of GameStop from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, January 16th. Two investment analysts have rated the stock with a Sell rating, Based on data from MarketBeat, the company presently has an average rating of “Sell” and a consensus target price of $13.50.

About GameStop

GameStop Corp. (NYSE:GME) is a global specialty retailer focused on video games, gaming consoles, consumer electronics and related accessories. The company operates a network of physical retail stores alongside an e-commerce platform, offering new and pre-owned products spanning the latest game software, hardware, collectibles and lifestyle merchandise. GameStop’s retail footprint is complemented by digital marketplaces for trade-ins and online purchases, as well as a membership program that provides exclusive content and rewards.

Originally founded in 1984 as Babbage’s in Dallas, Texas, the company adopted the GameStop name in 1999 following its merger with Software Etc.