GameStop (GME) Shares Gap Down After Analyst Downgrade

Shares of GameStop Corp. (NYSE:GME) gapped down prior to trading on Monday after TheStreet downgraded the stock from a c rating to a d+ rating. The stock had previously closed at $14.33, but opened at $13.66. GameStop shares last traded at $13.68, with a volume of 124319 shares trading hands.

Several other analysts have also issued reports on the stock. Wedbush lowered their price target on shares of GameStop from $19.00 to $18.00 and set an “outperform” rating on the stock in a research report on Friday, November 30th. Zacks Investment Research raised shares of GameStop from a “sell” rating to a “hold” rating in a research report on Thursday, November 29th. Bank of America raised shares of GameStop from an “underperform” rating to a “neutral” rating and set a $16.00 price target on the stock in a research report on Monday, November 26th. Loop Capital set a $16.00 price target on shares of GameStop and gave the company a “hold” rating in a research report on Friday, November 23rd. Finally, Credit Suisse Group set a $15.00 price target on shares of GameStop and gave the company a “hold” rating in a research report on Friday, September 7th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and three have assigned a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus target price of $15.13.

A number of institutional investors have recently bought and sold shares of GME. Principal Financial Group Inc. increased its holdings in GameStop by 1.8% during the 1st quarter. Principal Financial Group Inc. now owns 443,813 shares of the company’s stock worth $5,601,000 after acquiring an additional 7,986 shares during the period. Bank of Montreal Can bought a new stake in GameStop during the 2nd quarter worth approximately $473,000. Alps Advisors Inc. bought a new stake in GameStop during the 2nd quarter worth approximately $285,000. Eqis Capital Management Inc. increased its holdings in GameStop by 20.0% during the 2nd quarter. Eqis Capital Management Inc. now owns 35,097 shares of the company’s stock worth $511,000 after acquiring an additional 5,844 shares during the period. Finally, Piedmont Investment Advisors LLC bought a new stake in GameStop during the 2nd quarter worth approximately $345,000. 98.72% of the stock is currently owned by institutional investors and hedge funds.

The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.30 and a current ratio of 1.10. The firm has a market capitalization of $1.39 billion, a price-to-earnings ratio of 4.04 and a beta of 1.17.

GameStop (NYSE:GME) last posted its earnings results on Thursday, November 29th. The company reported $0.67 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.56 by $0.11. GameStop had a negative net margin of 6.45% and a positive return on equity of 15.72%. The business had revenue of $2.08 billion for the quarter, compared to analyst estimates of $2.03 billion. During the same quarter in the prior year, the firm posted $0.54 EPS. GameStop’s revenue was up 4.8% on a year-over-year basis. Equities analysts predict that GameStop Corp. will post 2.66 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, December 21st. Shareholders of record on Tuesday, December 11th will be paid a $0.38 dividend. The ex-dividend date is Monday, December 10th. This represents a $1.52 dividend on an annualized basis and a yield of 11.26%. GameStop’s dividend payout ratio is presently 45.51%.

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About GameStop (NYSE:GME)

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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