GameStop (NYSE:GME) Shares Gap Up – Still a Buy?

Shares of GameStop Corp. (NYSE:GME) gapped up prior to trading on Friday . The stock had previously closed at $26.34, but opened at $28.90. GameStop shares last traded at $27.72, with a volume of 5,231,312 shares changing hands.

Wall Street Analysts Forecast Growth

GME has been the subject of a number of recent research reports. Wedbush reissued an “underperform” rating and issued a $10.00 target price on shares of GameStop in a report on Friday, December 6th. StockNews.com upgraded shares of GameStop to a “sell” rating in a research note on Saturday, October 19th.

GameStop Trading Up 3.2 %

The firm has a fifty day moving average price of $28.91 and a 200 day moving average price of $25.18. The firm has a market capitalization of $12.14 billion, a price-to-earnings ratio of 151.01 and a beta of -0.11.

GameStop (NYSE:GME) last announced its earnings results on Tuesday, December 10th. The company reported $0.06 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.03) by $0.09. GameStop had a return on equity of 2.11% and a net margin of 1.45%. The company had revenue of $860.30 million during the quarter, compared to analyst estimates of $887.68 million. The firm’s revenue for the quarter was down 20.2% on a year-over-year basis. As a group, equities analysts predict that GameStop Corp. will post 0.08 EPS for the current fiscal year.

Insider Transactions at GameStop

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

Hedge Funds Weigh In On GameStop

A number of hedge funds and other institutional investors have recently bought and sold shares of GME. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in GameStop by 223.5% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 990 shares of the company’s stock valued at $31,000 after purchasing an additional 684 shares during the last quarter. New Wave Wealth Advisors LLC bought a new position in GameStop during the 4th quarter worth approximately $37,000. R Squared Ltd bought a new stake in GameStop in the fourth quarter valued at approximately $51,000. Bessemer Group Inc. boosted its position in shares of GameStop by 67.2% during the fourth quarter. Bessemer Group Inc. now owns 1,720 shares of the company’s stock worth $54,000 after purchasing an additional 691 shares in the last quarter. Finally, UMB Bank n.a. increased its position in shares of GameStop by 59.9% in the 4th quarter. UMB Bank n.a. now owns 1,820 shares of the company’s stock valued at $57,000 after buying an additional 682 shares in the last quarter. 29.21% of the stock is owned by institutional investors.

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.