GameStop Corp. (NYSE:GME) finished Wednesday with a subtraction of -$0.81 to close at $19.93, a downside of -3.91 percent. An average of 1,906,560 shares of common stock have been traded in the last five days. There was a fall of -$0.90 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 2,250,405 shares traded, while the 50-day average volume stands at 3,992,134.
GME stock has decreased by -16.65% in the last month. The company shares reached their 1-month lowest point of $19.82 on 08/09/23. With the stock rallying to its 52-week high on 06/13/23, shares of the company touched a low of $15.41 and a high of $45.53 in 52 weeks. It has reached a new high 13 times so far this year and achieved 7.96% or $1.47 in price. In spite of this, the price is down -56.23% from the 52-week high.
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Insider Transactions
GME stock investors should be aware that GameStop Corp. (GME) stock had its last reported insider trading activity 31 days ago on Jul 10. In this transaction, the insider spent $2,287,674. Chief Operating Officer, Patel Nir Vinay, disposed of 20,149 shares at a price of $23.27 on Jul 06. The insider now owns more than $468,807 worth of shares. Prior to that, Chief Financial Officer Saadeh-Jajeh Diana went on to Sale 10,484 shares at $23.27 each on Jul 06. An amount of $243,931 was transacted.
Valuation Metrics
GameStop Corp. (GME) stock’s beta is -0.22. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.05, the price-to-book (PB) ratio at 4.77, and the price-to-cash flow ratio at 23.74.
Financial Health
The quick ratio of GameStop Corp. for the three months ended April 29 was 1.10, and the current ratio was 1.70, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.02 and a total debt to equity ratio of 0.03 for the quarter ending April 29. GameStop Corp.’s EBITDA margin for the year ending April 29 is -4.17%, while its operating margin for the same period stands at -3.70%. Its gross profit as reported stood at $1.37 billion compared to revenue of $5.93 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, GameStop Corp.’s return on assets was -6.70%.
Earnings Surprise
For the three-month period that ended April 29, GameStop Corp. had $253.1 million in cash and short-term investments compared to $26.3 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$50.5 million in the quarter, while revenues of $48.2 million were shrunk -212.67%. The analyst consensus anticipated GameStop Corp.’s latest quarter earnings to come in at -$0.12 per share, but it turned out to be -$0.14, a -16.70% surprise. For the quarter, EBITDA amounted to -$44.7 million. Shareholders own equity worth $304.75 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at GameStop Corp. (GME) price momentum. RSI 9-day as of the close on 09 August was 22.66%, suggesting the stock is oversold, with historical volatility in this time frame at 26.83%.
As of today, GME’s price is $20.73 -4.32% or -$0.90 from its 5-day moving average. GME is currently trading -14.97% lower than its 20-day SMA and +18.91% higher than its 100-day SMA. However, the stock’s current price level is -14.28% below the SMA50 and -18.35% below the SMA200.
The stochastic %K and %D were 13.29% and 17.03%, respectively, and the average true range (ATR) was 0.86. With the 14-day stochastic at 3.00% and the average true range at 0.91, the RSI (14) stands at 30.79%. The stock has reached -0.54 on the 9-day MACD Oscillator while the 14-day reading was at -1.07.
Analyst Ratings
Wedbush reiterated its an Underperform rating on GameStop Corp. (NYSE: GME), but raised their price target to $6.50, indicating a potential price decrease of -206.62% for the stock. The consensus rating for GameStop Corp. (GME) among analysts is Underweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell GME, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 0 others rate it as a “buy”.
What is GME’s price target for the next 12 months?
Analysts predict a range of price targets between $6.20 and $20.00, with a median target of $13.10. Taking a look at these predictions, the average price target given by analysts for GameStop Corp. (GME) stock is $13.10.
