GameStop (NYSE:GME – Get Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday, Zacks.com reports. They currently have a $80.00 price objective on the stock. Zacks Investment Research’s price target would indicate a potential downside of 24.87% from the stock’s previous close.
According to Zacks, “Shares of GameStop have slid and underperformed the industry in the past six months on concerns of mounting losses. The company posted lower-than-expected fourth-quarter fiscal 2021 bottom-line results. While net sales continued to increase year over year, the company reported a loss against earnings in the year-ago period. This was the seventh loss reported in the last eight quarters. Management highlighted that supply chain bottlenecks coupled with the Omicron variant had a material impact on this past year’s holiday season. The company absorbed higher costs and increased spending to evolve into a digitally advanced player in the gaming industry. We note that adjusted SG&A expenses rose 28.4% in the quarter. GameStop has been encountering stiff competition as well as growing consumers’ preference for downloading video game content.”
Several other analysts also recently weighed in on the stock. Wedbush lowered their target price on shares of GameStop from $45.00 to $30.00 and set an “underperform” rating on the stock in a report on Friday. Ascendiant Capital Markets reaffirmed a “sell” rating and issued a $146.00 target price (up previously from $24.00) on shares of GameStop in a report on Monday, December 27th. Five analysts have rated the stock with a sell rating, Based on data from MarketBeat.com, the company has a consensus rating of “Sell” and a consensus target price of $71.50.
Shares of GameStop stock traded up $12.28 on Tuesday, reaching $106.48. 162,721 shares of the company were exchanged, compared to its average volume of 3,207,864. The stock’s 50 day moving average price is $109.43 and its 200-day moving average price is $156.26. The company has a market cap of $8.13 billion, a P/E ratio of -20.52 and a beta of -1.61. GameStop has a 1-year low of $77.58 and a 1-year high of $344.66. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.90 and a quick ratio of 1.16.
GameStop (NYSE:GME – Get Rating) last posted its earnings results on Thursday, March 17th. The company reported ($1.86) earnings per share for the quarter, missing the consensus estimate of $0.84 by ($2.70). The business had revenue of $2.25 billion for the quarter, compared to analysts’ expectations of $2.22 billion. GameStop had a negative return on equity of 22.15% and a negative net margin of 6.34%. GameStop’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.34 EPS. On average, research analysts predict that GameStop will post 0.01 earnings per share for the current fiscal year.
A number of institutional investors have recently added to or reduced their stakes in the stock. City State Bank purchased a new stake in GameStop in the fourth quarter valued at approximately $78,000. BlackRock Inc. lifted its stake in shares of GameStop by 0.9% during the fourth quarter. BlackRock Inc. now owns 5,194,518 shares of the company’s stock worth $770,813,000 after purchasing an additional 48,689 shares in the last quarter. Wells Fargo & Company MN lifted its stake in shares of GameStop by 306.4% during the fourth quarter. Wells Fargo & Company MN now owns 6,291 shares of the company’s stock worth $934,000 after purchasing an additional 4,743 shares in the last quarter. Allianz Asset Management GmbH acquired a new position in shares of GameStop during the fourth quarter worth about $289,000. Finally, Toroso Investments LLC increased its position in shares of GameStop by 16.6% during the fourth quarter. Toroso Investments LLC now owns 7,446 shares of the company’s stock worth $1,105,000 after acquiring an additional 1,058 shares during the last quarter. Hedge funds and other institutional investors own 26.05% of the company’s stock.
About GameStop
GameStop Corp., a specialty retailer, provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. The company sells new and pre-owned video game platforms; accessories, such as controllers, gaming headsets, virtual reality products, and memory cards; new and pre-owned video game software; and in-game digital currency, digital downloadable content, and full-game downloads, as well as network points cards, and prepaid digital and subscription cards.