GameStop (NYSE:GME) Shares Gap Up After Strong Earnings

GameStop Corp. (NYSE:GME - Get Free Report)'s stock price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $25.40, but opened at $28.84. GameStop shares last traded at $29.06, with a volume of 17,333,027 shares changing hands.

The company reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.21. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.48 billion. GameStop had a return on equity of 2.11% and a net margin of 1.45%. GameStop's revenue for the quarter was down 28.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.21 earnings per share.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Wedbush restated an "underperform" rating and set a $10.00 price target on shares of GameStop in a research report on Monday, March 24th. StockNews.com upgraded shares of GameStop from a "sell" rating to a "hold" rating in a report on Thursday.

Insider Activity

In related news, insider Daniel William Moore sold 895 shares of the business's stock in a transaction on Friday, January 3rd. The stock was sold at an average price of $31.07, for a total transaction of $27,807.65. Following the completion of the transaction, the insider now directly owns 31,385 shares of the company's stock, valued at $975,131.95. The trade was a 2.77 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, General Counsel Mark Haymond Robinson sold 1,577 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 $48,997.39. Following the completion of the sale, the general counsel now directly owns 42,350 shares in the company, valued at $1,315,814.50. This represents a 3.59 % decrease in their position. The disclosure for this sale can be found here. Insiders own 12.28% of the company's stock.

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Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in GME. Charles Schwab Investment Management Inc. lifted its position in shares of GameStop by 3.1% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,610,264 shares of the company's stock worth $113,146,000 after purchasing an additional 107,354 shares during the last quarter. Foundations Investment Advisors LLC acquired a new position in shares of GameStop during the 4th quarter worth about $878,000. Retirement Systems of Alabama raised its position in shares of GameStop by 41.7% during the 3rd quarter. Retirement Systems of Alabama now owns 471,156 shares of the company's stock worth $10,804,000 after acquiring an additional 138,597 shares in the last quarter. Bank of New York Mellon Corp lifted its stake in GameStop by 2.4% during the fourth quarter. Bank of New York Mellon Corp now owns 2,565,455 shares of the company's stock worth $80,401,000 after purchasing an additional 60,673 shares during the last quarter. Finally, Swiss National Bank boosted its holdings in GameStop by 5.5% in the fourth quarter. Swiss National Bank now owns 834,228 shares of the company's stock valued at $26,145,000 after purchasing an additional 43,700 shares in the last quarter. Hedge funds and other institutional investors own 29.21% of the company's stock.

GameStop Price Performance

The company's 50 day simple moving average is $25.36 and its 200 day simple moving average is $25.66. The company has a market capitalization of $9.72 billion, a PE ratio of 120.92 and a beta of -0.29.

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.