Jefferies Financial Group Analysts Decrease Earnings Estimates for GameStop Corp. (NYSE:GME)

GameStop Corp. (NYSE:GME) – Investment analysts at Jefferies Financial Group decreased their FY2020 earnings estimates for GameStop in a research note issued to investors on Tuesday, June 4th, according to Zacks Investment Research. Jefferies Financial Group analyst S. Wissink now expects that the company will post earnings per share of $1.75 for the year, down from their prior estimate of $1.88. Jefferies Financial Group has a “Hold” rating and a $12.00 price target on the stock. Jefferies Financial Group also issued estimates for GameStop’s Q4 2020 earnings at $1.39 EPS, Q4 2021 earnings at $1.47 EPS and FY2021 earnings at $2.02 EPS.

GME has been the topic of a number of other research reports. ValuEngine downgraded GameStop from a “sell” rating to a “strong sell” rating in a research report on Monday, June 3rd. Loop Capital dropped their price target on GameStop to $8.00 and set a “hold” rating on the stock in a research report on Monday, June 3rd. They noted that the move was a valuation call. Benchmark reaffirmed a “sell” rating and set a $5.00 price objective (down previously from $9.00) on shares of GameStop in a research report on Wednesday, June 5th. Zacks Investment Research downgraded GameStop from a “hold” rating to a “sell” rating in a research report on Tuesday, March 12th. Finally, Wedbush dropped their price objective on GameStop from $10.00 to $7.00 and set an “underperform” rating on the stock in a research report on Monday, May 20th. Four 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’s stock. GameStop currently has an average rating of “Hold” and an average price target of $9.20.

Shares of GME traded down $0.07 during midday trading on Thursday, reaching $5.47. 3,896,355 shares of the stock were exchanged, compared to its average volume of 8,519,552. GameStop has a 52 week low of $4.71 and a 52 week high of $17.27. The company has a debt-to-equity ratio of 0.79, a current ratio of 1.48 and a quick ratio of 0.59. The firm has a 50 day moving average price of $6.79. The company has a market capitalization of $566.57 million, a P/E ratio of 2.56 and a beta of 0.65.

GameStop (NYSE:GME) last posted its quarterly earnings results on Tuesday, June 4th. The company reported $0.07 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.02) by $0.09. GameStop had a positive return on equity of 14.55% and a negative net margin of 8.32%. The business had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.64 billion. During the same quarter in the prior year, the company earned $0.38 EPS. The business’s revenue was down 13.3% compared to the same quarter last year.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Oregon Public Employees Retirement Fund acquired a new stake in shares of GameStop in the 4th quarter valued at about $39,000. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in GameStop during the 1st quarter valued at $51,000. Investors Research Corp acquired a new stake in GameStop during the 1st quarter valued at $55,000. Everence Capital Management Inc. acquired a new stake in GameStop during the 1st quarter valued at $111,000. Finally, Magnus Financial Group LLC acquired a new stake in shares of GameStop during the first quarter worth $111,000. 98.68% of the stock is owned by hedge funds and other institutional investors.

GameStop Company Profile

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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