GameStop (NYSE:GME) Shares Gap Down – Here’s Why

GameStop Corp. (NYSE:GME)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $28.36, but opened at $25.87. GameStop shares last traded at $24.81, with a volume of 11,103,359 shares.

Analyst Ratings Changes

Separately, Wedbush reaffirmed an “underperform” rating and issued a $10.00 target price on shares of GameStop in a research report on Monday.

GameStop Stock Down 14.9 %

The business has a 50-day simple moving average of $25.59 and a 200-day simple moving average of $25.69. The company has a market cap of $10.78 billion, a PE ratio of 134.82 and a beta of -0.29.

GameStop (NYSE:GME) last posted its quarterly earnings data on Tuesday, March 25th. The company reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.21. GameStop had a return on equity of 2.11% and a net margin of 1.45%. The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.48 billion. During the same quarter in the previous year, the business earned $0.21 EPS. The company’s quarterly revenue was down 28.5% compared to the same quarter last year. As a group, equities research analysts predict that GameStop Corp. will post 0.08 EPS for the current fiscal year.

Insider Buying and Selling

In other GameStop news, General Counsel Mark Haymond Robinson sold 1,577 shares of GameStop stock in a transaction dated Friday, January 3rd. The stock was sold at an average price of $31.07, for a total transaction of $48,997.39. Following the completion of the sale, the general counsel now directly owns 42,350 shares of the company’s stock, valued at $1,315,814.50. The trade was a 3.59 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Daniel William Moore sold 895 shares of the stock in a transaction dated Friday, January 3rd. The shares were sold at an average price of $31.07, for a total value of $27,807.65. Following the completion of the transaction, the insider now owns 31,385 shares in the company, valued at approximately $975,131.95. The trade was a 2.77 % decrease in their position. The disclosure for this sale can be found here. 12.28% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in GameStop by 5.5% during the 4th quarter. Vanguard Group Inc. now owns 39,144,063 shares of the company’s stock worth $1,226,775,000 after acquiring an additional 2,036,032 shares in the last quarter. State Street Corp increased its position in shares of GameStop by 38.0% during the third quarter. State Street Corp now owns 11,143,759 shares of the company’s stock worth $255,526,000 after purchasing an additional 3,070,571 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of GameStop by 6.1% in the 4th quarter. Geode Capital Management LLC now owns 6,659,234 shares of the company’s stock valued at $208,769,000 after purchasing an additional 380,554 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in shares of GameStop by 3.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,610,264 shares of the company’s stock valued at $113,146,000 after purchasing an additional 107,354 shares during the period. Finally, Northern Trust Corp grew its stake in GameStop by 26.2% during the 4th quarter. Northern Trust Corp now owns 3,171,303 shares of the company’s stock worth $99,389,000 after buying an additional 659,345 shares during the last quarter. Institutional investors and hedge funds own 29.21% of the company’s stock.

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.