GameStop (NYSE:GME) Sees Strong Trading Volume Following Insider Buying Activity

GameStop Corp. (NYSE:GME) shares saw unusually-strong trading volume on Monday following insider buying activity. Approximately 10,806,447 shares were traded during mid-day trading, an increase of 71% from the previous session’s volume of 6,331,418 shares.The stock last traded at $24.8450 and had previously closed at $22.99.

Specifically, Director Lawrence Cheng bought 5,000 shares of the firm’s stock in a transaction that occurred on Friday, January 23rd. The shares were acquired at an average price of $22.87 per share, with a total value of $114,350.00. Following the acquisition, the director owned 88,000 shares of the company’s stock, valued at approximately $2,012,560. The trade was a 6.02% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Ryan Cohen purchased 500,000 shares of the business’s stock in a transaction on Tuesday, January 20th. The stock was purchased at an average cost of $21.12 per share, with a total value of $10,560,000.00. Following the completion of the acquisition, the chief executive officer owned 37,847,842 shares in the company, valued at approximately $799,346,423.04. This trade represents a 1.34% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In other news, Director Alain Attal purchased 12,000 shares of the firm’s stock in a transaction dated Tuesday, January 20th. The shares were purchased at an average price of $20.90 per share, with a total value of $250,800.00. Following the completion of the acquisition, the director owned 596,464 shares in the company, valued at $12,466,097.60. This trade represents a 2.05% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink.

Wall Street Analysts Forecast Growth

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

GameStop News Summary

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: Legendary investor Michael Burry disclosed a new stake in GME and described his position as a long-term value bet, comments that triggered buying and helped push the stock higher. GameStop stock jumps after Michael Burry reveals new stake
• Positive Sentiment: Multiple rounds of insider buying have surfaced this week — including a reported $10.56M purchase by the CEO and a disclosed 5,000-share buy by director Lawrence Cheng — reinforcing investor perception that management is accumulating shares. Insider Buying: GameStop (NYSE:GME) CEO Acquires $10,560,000.00 in Stock
• Positive Sentiment: Coverage highlights — including profiles that portray CEO Ryan Cohen as pursuing large-scale, Buffett-like ambitions — are supporting a narrative that GameStop is executing a long-term transformation rather than being purely a meme-stock trade. GameStop’s Original Bull Is Back. CEO Ryan Cohen Has Berkshire-Like Ambitions.
• Neutral Sentiment: Market reaction is amplified by heavy trading — intraday volume is materially above the stock’s average — which can magnify moves in either direction and increases short-term volatility. Why is GameStop (GME) stock rocketing higher today?
• Neutral Sentiment: Analyst and media pieces unpacking recent quarterly results place GME in the context of specialty retail; these are useful for longer-term investors but have mixed implications short term. Unpacking Q3 Earnings: GameStop (NYSE:GME) In The Context Of Other Specialty Retail Stocks
• Negative Sentiment: Fundamentals remain mixed — Q3 EPS beat estimates but revenue missed and was down year-over-year, a reminder the company still faces retail headwinds even as strategic changes continue. That gap could temper upside if growth doesn’t re-accelerate. GameStop Stock Performance

GameStop Trading Up 4.4%

The company has a debt-to-equity ratio of 0.78, a quick ratio of 9.77 and a current ratio of 10.39. The firm has a 50-day moving average of $21.63 and a 200-day moving average of $22.83. The firm has a market capitalization of $10.75 billion, a P/E ratio of 29.27 and a beta of -1.23.

GameStop (NYSE:GME) last released its quarterly earnings data on Tuesday, December 9th. The company reported $0.24 earnings per share for the quarter, beating analysts’ consensus estimates of $0.20 by $0.04. GameStop had a return on equity of 9.75% and a net margin of 11.08%.The firm had revenue of $821.00 million during the quarter, compared to analyst estimates of $987.29 million. During the same quarter in the prior year, the firm posted $0.06 earnings per share. The business’s quarterly revenue was down 4.6% compared to the same quarter last year. On average, equities research analysts anticipate that GameStop Corp. will post 0.08 EPS for the current fiscal year.

Institutional Investors Weigh In On GameStop

A number of large investors have recently added to or reduced their stakes in GME. Bessemer Group Inc. raised its stake in shares of GameStop by 39.2% during the third quarter. Bessemer Group Inc. now owns 1,674 shares of the company’s stock valued at $46,000 after acquiring an additional 471 shares during the last quarter. Thrivent Financial for Lutherans increased its holdings in GameStop by 0.5% during the 2nd quarter. Thrivent Financial for Lutherans now owns 96,623 shares of the company’s stock valued at $2,357,000 after purchasing an additional 511 shares during the period. Wealthfront Advisers LLC raised its position in GameStop by 1.9% during the 2nd quarter. Wealthfront Advisers LLC now owns 30,761 shares of the company’s stock valued at $750,000 after purchasing an additional 576 shares during the last quarter. Public Employees Retirement System of Ohio raised its position in GameStop by 0.4% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 131,002 shares of the company’s stock valued at $3,574,000 after purchasing an additional 578 shares during the last quarter. Finally, Louisiana State Employees Retirement System lifted its holdings in GameStop by 0.5% in the 2nd quarter. Louisiana State Employees Retirement System now owns 114,500 shares of the company’s stock worth $2,793,000 after buying an additional 600 shares during the period. Institutional investors own 29.21% of the company’s stock.

GameStop Company Profile

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.