GameStop (NYSE:GME) Trading Down 4% on Analyst Downgrade

Shares of GameStop Corp. (NYSE:GME) fell 4% on Thursday after Wedbush lowered their price target on the stock from $6.00 to $5.60. Wedbush currently has an underperform rating on the stock. GameStop traded as low as $12.61 and last traded at $12.64. 3,937,563 shares were traded during trading, an increase of 9% from the average session volume of 3,617,850 shares. The stock had previously closed at $13.17.

Separately, StockNews.com raised shares of GameStop from a “sell” rating to a “hold” rating in a research report on Wednesday.

Hedge Funds Weigh In On GameStop

Institutional investors have recently added to or reduced their stakes in the company. Covestor Ltd raised its stake in shares of GameStop by 323.2% in the 1st quarter. Covestor Ltd now owns 237 shares of the company’s stock valued at $39,000 after purchasing an additional 181 shares in the last quarter. Captrust Financial Advisors raised its stake in GameStop by 24.8% during the second quarter. Captrust Financial Advisors now owns 1,314 shares of the company’s stock worth $161,000 after acquiring an additional 261 shares during the period. Canada Pension Plan Investment Board acquired a new stake in GameStop during the first quarter worth about $50,000. Prudential Financial Inc. grew its position in GameStop by 8.5% in the 2nd quarter. Prudential Financial Inc. now owns 4,640 shares of the company’s stock worth $567,000 after purchasing an additional 365 shares during the last quarter. Finally, FMR LLC grew its position in GameStop by 4.6% in the 2nd quarter. FMR LLC now owns 8,391 shares of the company’s stock worth $1,026,000 after purchasing an additional 370 shares during the last quarter. Institutional investors and hedge funds own 29.21% of the company’s stock.

GameStop Trading Down 4.6 %

The company has a current ratio of 1.65, a quick ratio of 0.94 and a debt-to-equity ratio of 0.02. The stock has a market cap of $3.84 billion, a P/E ratio of 658.58 and a beta of -0.42. The firm’s 50-day simple moving average is $14.30 and its 200 day simple moving average is $14.91.

GameStop (NYSE:GME) last posted its quarterly earnings data on Tuesday, March 26th. The company reported $0.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.29 by ($0.07). The company had revenue of $1.79 billion during the quarter, compared to the consensus estimate of $2.05 billion. GameStop had a net margin of 0.13% and a return on equity of 1.37%. The company’s revenue was down 19.4% on a year-over-year basis. During the same quarter last year, the business earned $0.16 earnings per share. As a group, equities research analysts anticipate that GameStop Corp. will post 0.04 earnings per share for the current year.

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.