The stock of GameStop Corp. (NYSE:GME) increased by $0.67 on Tuesday to finish at $18.24, up 3.81 percent. The last five days have seen an average of 3,134,680 shares of common stock traded. 13 times new highs were reached in the current year, with a fall of -$0.22. The average number of shares traded over the last 20 days was 2,508,485, while the average volume over the last 50 days totaled 2,478,594.
GME stock dropped -17.84% since last month. On 08/24/23, the company’s shares reached a one-month low of $16.18. The stock touched a high of $34.99 on 06/13/23, after rallying from a low of $15.41 in 52 weeks. The price of GME stock has declined by -1.19% or -$0.22 this year, reaching a new high 13 times. Still, the stock price is down -47.87% from the 52-week high.
Insider Transactions
GME stock investors should be aware that GameStop Corp. (GME) stock had its last reported insider trading activity 51 days ago on Jul 10. On Jul 10, Chief Operating Officer Patel Nir Vinay sold 101,924 shares at $22.44 each. This transaction resulted in the insider making $2,287,674. On Jul 06, Patel Nir Vinay sold 20,149 shares at a price of US$23.27. After the transaction, the insider now owns 1,106,619 shares. Chief Financial Officer Saadeh-Jajeh Diana had earlier sold 10,484 shares on Jul 06 for $23.27 a share. The transaction was completed for $243,931.
Valuation Metrics
Beta for the stock is -0.15. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.92, the price-to-book (PB) ratio of 4.36, and the price-to-cash flow ratio of 20.80.
Company paid $0.0950 per share in dividends, remained unchanged from $0.0950 last year.
Financial Health
For the three months ended April 29, GameStop Corp.’s quick ratio was 1.10, while its current ratio was 1.70, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending April 29 is 0.02, and the total debt to equity ratio is 0.03. As far as profitability goes, gross margin for the trailing twelve months is 23.50% percent. GameStop Corp.’s EBITDA margin for the year ended April 29 was -4.17%, whereas its operating margin stood at -3.70% for the same period. Based on annual data, it had gross profit of $1.37 billion and revenue of $5.93 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. GME’s return on assets (ROA) during the last 12 months has been -6.70%. There was a -23.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -15.90%.
Earnings Surprise
According to GameStop Corp.’s quarterly financial report for the quarter that ended April 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.24 billion, while revenues fell by -11.42% to $2.23 billion. It was predicted that GameStop Corp.’s quarterly earnings would be -$0.14, but it ended up being -$0.12, beating the consensus by -16.70%. EBITDA was -$44.7 million for the quarter. At the end of GameStop Corp.’s most recent quarter ended April 29, its liabilities totaled 1.8 billion, while its total debt was $650.5 million. Equity owned by shareholders amounts to $304.75 million.
Technical Picture
Here’s a quick look at GameStop Corp.’s (GME) price momentum from a technical perspective. As of 29 August, the RSI 9-day stood at 44.51%, suggesting the stock is Neutral, with a 54.04% historical volatility rate.
The stochastic %K and %D were 32.99% and 19.59% respectively, while the average true range (ATR) was 0.82. Based on the 14-day stochastic reading of 49.05%, the RSI (14) reading is 39.51%. On the 9-day MACD Oscillator, the stock is at 0.02, and the 14-day reading is at -0.71.
Analyst Ratings
In a note to investors, Wedbush maintained its an Underperform rating on GameStop Corp. (NYSE: GME). However, the firm raised their price target to $6.20, indicating a possible decrease of -180.62% in the stock price. Analysts have assigned GameStop Corp. (GME) an Underweight rating. GME is a stock that is recommended for selling by 1 brokerage firm, while 1 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 0 others recommend it as a buy.
What is GME’s price target for the next 12 months?
The current consensus forecast for the stock is between $6.20 and $20.00, with a median target price of $13.10. In analyzing these forecasts, the average price target given by analysts for GameStop Corp. (GME) is $13.10.
