GameStop Target of Unusually Large Options Trading (NYSE:GME)

GameStop Corp. (NYSE:GME) was the target of some unusual options trading activity on Wednesday. Stock traders acquired 37,522 put options on the company. This is an increase of approximately 1,467% compared to the average daily volume of 2,394 put options.

A number of research analysts have recently commented on GME shares. Credit Suisse Group decreased their price objective on shares of GameStop from $11.00 to $10.00 and set an “underperform” rating for the company in a research report on Wednesday, April 3rd. Jefferies Financial Group set a $12.00 price objective on shares of GameStop and gave the company a “hold” rating in a research report on Friday, March 22nd. Telsey Advisory Group reduced their target price on shares of GameStop from $11.00 to $10.00 and set a “market perform” rating for the company in a report on Wednesday, April 3rd. Zacks Investment Research cut shares of GameStop from a “hold” rating to a “sell” rating in a research note on Tuesday, March 12th. Finally, Wedbush reiterated an “outperform” rating and issued a $9.00 price objective (down previously from $12.00) on shares of GameStop in a research note on Wednesday, June 5th. Four equities research analysts have rated the stock with a sell rating, six have issued a hold rating and one has issued a buy rating to the company. GameStop presently has a consensus rating of “Hold” and a consensus target price of $9.20.

Shares of NYSE:GME traded down $0.07 during midday trading on Friday, hitting $5.47. The stock had a trading volume of 3,893,425 shares, compared to its average volume of 4,680,858. The stock has a 50-day moving average price of $6.79. The company has a market capitalization of $559.41 million, a P/E ratio of 2.56 and a beta of 0.65. The company has a quick ratio of 0.59, a current ratio of 1.48 and a debt-to-equity ratio of 0.79. GameStop has a fifty-two week low of $4.71 and a fifty-two week high of $17.27.

GameStop (NYSE:GME) last issued its earnings results on Tuesday, June 4th. The company reported $0.07 EPS for the quarter, beating the consensus estimate of ($0.02) by $0.09. The company had revenue of $1.55 billion during the quarter, compared to analysts’ expectations of $1.64 billion. GameStop had a negative net margin of 8.32% and a positive return on equity of 14.55%. The business’s revenue for the quarter was down 13.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.38 EPS. As a group, equities research analysts expect that GameStop will post 1.45 earnings per share for the current fiscal year.

A number of hedge funds have recently added to or reduced their stakes in the stock. Bank of Montreal Can increased its position in GameStop by 2.9% during the 4th quarter. Bank of Montreal Can now owns 33,779 shares of the company’s stock worth $426,000 after purchasing an additional 962 shares in the last quarter. Piedmont Investment Advisors Inc. grew its holdings in GameStop by 6.3% during the 1st quarter. Piedmont Investment Advisors Inc. now owns 25,761 shares of the company’s stock worth $262,000 after acquiring an additional 1,531 shares during the last quarter. Thrivent Financial for Lutherans grew its holdings in GameStop by 2.2% during the 4th quarter. Thrivent Financial for Lutherans now owns 73,319 shares of the company’s stock worth $925,000 after acquiring an additional 1,612 shares during the last quarter. United Services Automobile Association grew its holdings in GameStop by 6.1% during the 4th quarter. United Services Automobile Association now owns 29,338 shares of the company’s stock worth $370,000 after acquiring an additional 1,697 shares during the last quarter. Finally, Comerica Bank grew its holdings in GameStop by 1.8% during the 4th quarter. Comerica Bank now owns 104,225 shares of the company’s stock worth $1,176,000 after acquiring an additional 1,893 shares during the last quarter. Institutional investors and hedge funds own 98.68% of the company’s stock.

About GameStop

GameStop Corp. operates as a multichannel video game and consumer electronics retailer in the United States, Canada, Australia, and Europe. 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 for use with video game hardware and software; and digital products, such as downloadable content, network points cards, prepaid digital and prepaid subscription cards, and digitally downloadable software, as well as collectible products.

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