GameStop (NYSE:GME) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Shares of GameStop have increased and outpaced the industry in the past three months. This rise can be primarily attributable to the company’s confirmation that it is holding exploratory talks relating to a potential transaction. However, analysts have pointed that the company has been grappling with falling sales in core business, affected by stiff competition and leadership issues. Meanwhile, gradual shift to digital and mobile downloads is posing a threat to its software business. We note that the company’s Technology Brand has been witnessing soft sales since the past few past few quarters. This may be due to overlap in AT&T’s dealer compensation structure and lower promotional activity. Nevertheless, GameStop has been undertaking several initiatives to augment revenues. Also, we are encouraged by the rise in collectibles sales buoyed by continued expansion of licensed merchandise offerings and unique product offerings.”
Other equities research analysts also recently issued reports about the stock. Jefferies Financial Group assumed coverage on shares of GameStop in a report on Monday, July 9th. They issued a “buy” rating and a $18.00 price target on the stock. Robert W. Baird lowered their price target on shares of GameStop from $18.00 to $14.00 and set an “outperform” rating on the stock in a report on Friday, June 1st. Credit Suisse Group set a $15.00 price target on shares of GameStop and gave the stock a “hold” rating in a report on Friday, June 1st. Telsey Advisory Group lowered their price target on shares of GameStop from $15.00 to $14.00 and set a “market perform” rating on the stock in a report on Friday, June 1st. Finally, Wedbush reissued a “buy” rating and issued a $19.00 price target on shares of GameStop in a report on Tuesday, May 29th. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and four have given a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average price target of $16.23.
NYSE GME traded up $0.55 during trading on Wednesday, hitting $17.04. 244,685 shares of the company’s stock traded hands, compared to its average volume of 2,089,570. The company has a market cap of $1.56 billion, a PE ratio of 5.10 and a beta of 1.26. GameStop has a 12-month low of $12.20 and a 12-month high of $22.12. The company has a quick ratio of 0.45, a current ratio of 1.52 and a debt-to-equity ratio of 0.37.
GameStop (NYSE:GME) last announced its quarterly earnings results on Friday, June 1st. The company reported $0.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.01. GameStop had a net margin of 0.04% and a return on equity of 13.92%. The firm had revenue of $1.93 billion for the quarter, compared to the consensus estimate of $1.96 billion. During the same period in the prior year, the firm posted $0.63 earnings per share. The company’s revenue for the quarter was down 5.5% on a year-over-year basis. equities research analysts anticipate that GameStop will post 3.08 EPS for the current year.
Several institutional investors have recently made changes to their positions in the company. Royal Bank of Canada increased its position in shares of GameStop by 151.5% in the first quarter. Royal Bank of Canada now owns 267,505 shares of the company’s stock worth $3,375,000 after purchasing an additional 161,145 shares during the last quarter. Principal Financial Group Inc. increased its position in shares of GameStop by 1.8% in the first quarter. Principal Financial Group Inc. now owns 443,813 shares of the company’s stock worth $5,601,000 after purchasing an additional 7,986 shares during the last quarter. Piedmont Investment Advisors LLC bought a new position in shares of GameStop in the second quarter worth approximately $345,000. Spark Investment Management LLC bought a new position in shares of GameStop in the first quarter worth approximately $1,569,000. Finally, Millennium Management LLC increased its position in shares of GameStop by 448.2% in the fourth quarter. Millennium Management LLC now owns 125,622 shares of the company’s stock worth $2,255,000 after purchasing an additional 102,706 shares during the last quarter.
GameStop Company Profile
GameStop Corp. operates as a multichannel video game, consumer electronics, and wireless services retailer. It operates in five segments: United States, Canada, Australia, Europe, and Technology Brands. The company sells new and pre-owned video game hardware; video game software; pre-owned and value video games; video game accessories, including controllers, gaming headsets, virtual reality products, memory cards, and other add-ons; and digital products, such as downloadable content, network points cards, prepaid digital and prepaid subscription cards, and digitally downloadable software.
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