GameStop (NYSE:GME) Stock Rating Lowered by Zacks Investment Research

GameStop (NYSE:GME) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Friday, Zacks.com reports. They currently have a $231.00 price target on the stock. Zacks Investment Research‘s price target would suggest a potential upside of 1.73% from the stock’s current price.

According to Zacks, “Shares of GameStop have outpaced the industry in the past six months. Markedly, the company delivered better-than-expected first-quarter fiscal 2021 results along with significant improvement in the top line. Notably, the company witnessed sales growth across hardware and accessories as well as collectibles categories. The company has been undertaking prudent efforts to fast-track growth, particularly in the digital arena. To accelerate transformation, the company has resorted to board restructuring. It has also undertaken capital restructuring to strengthen balance sheet. This includes steps taken to eliminate long term debt. Further, the company highlighted that second-quarter sales trend continue to reflect growth, with total sales in May increasing 27% year on year. Nevertheless, store closures associated with the pandemic is a worry.”

A number of other brokerages also recently commented on GME. Credit Suisse Group reiterated a “sell” rating on shares of GameStop in a research report on Thursday, April 1st. Telsey Advisory Group reduced their price objective on GameStop from $33.00 to $30.00 and set an “underperform” rating on the stock in a research report on Wednesday, March 24th. Ascendiant Capital Markets reiterated a “sell” rating on shares of GameStop in a research report on Monday, April 19th. Finally, Wedbush lifted their price objective on GameStop from $39.00 to $50.00 and gave the stock an “underperform” rating in a research report on Thursday. Five investment analysts have rated the stock with a sell rating and three have given a hold rating to the company’s stock. GameStop has a consensus rating of “Sell” and an average price target of $48.86.

Shares of NYSE GME traded up $6.68 during midday trading on Friday, hitting $227.07. The stock had a trading volume of 168,013 shares, compared to its average volume of 28,869,111. The firm has a market capitalization of $16.07 billion, a P/E ratio of -67.18 and a beta of -2.07. The company’s 50 day simple moving average is $188.00. GameStop has a 1 year low of $3.77 and a 1 year high of $483.00. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.16 and a quick ratio of 0.71.

GameStop (NYSE:GME) last released its earnings results on Tuesday, June 8th. The company reported ($0.45) earnings per share for the quarter, beating the consensus estimate of ($0.83) by $0.38. The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.16 billion. GameStop had a negative return on equity of 35.57% and a negative net margin of 4.23%. The business’s quarterly revenue was up 25.1% compared to the same quarter last year. During the same quarter last year, the business posted ($1.61) earnings per share. Equities research analysts anticipate that GameStop will post -0.95 earnings per share for the current year.

A number of hedge funds have recently bought and sold shares of GME. Morgan Stanley increased its stake in GameStop by 114.2% during the fourth quarter. Morgan Stanley now owns 4,275,838 shares of the company’s stock worth $80,556,000 after acquiring an additional 2,279,996 shares during the last quarter. Senvest Management LLC grew its stake in shares of GameStop by 56.6% in the fourth quarter. Senvest Management LLC now owns 5,050,915 shares of the company’s stock valued at $95,159,000 after buying an additional 1,825,175 shares in the last quarter. BlackRock Inc. grew its stake in shares of GameStop by 7.2% in the fourth quarter. BlackRock Inc. now owns 9,217,335 shares of the company’s stock valued at $173,656,000 after buying an additional 616,828 shares in the last quarter. Arrowstreet Capital Limited Partnership acquired a new stake in shares of GameStop in the first quarter valued at $31,985,000. Finally, Clear Creek Financial Management LLC acquired a new stake in shares of GameStop in the fourth quarter valued at $2,780,000. 36.56% of the stock is owned by institutional investors.

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.

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