GameStop Sees Unusually Large Options Volume (NYSE:GME)

GameStop Corp. (NYSE:GME) was the recipient of some unusual options trading activity on Friday. Stock investors purchased 350,625 call options on the company. This is an increase of 30% compared to the average daily volume of 269,620 call options.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. StockNews.com upgraded shares of GameStop from a “sell” rating to a “hold” rating in a report on Wednesday, March 27th. Wedbush cut their price objective on shares of GameStop from $13.50 to $11.00 and set an “underperform” rating on the stock in a report on Wednesday.

GameStop Stock Down 1.4 %

Shares of GME traded down $0.40 during mid-day trading on Friday, hitting $28.72. 82,381,089 shares of the company traded hands, compared to its average volume of 26,230,535. GameStop has a 1-year low of $9.95 and a 1-year high of $64.83. The company has a quick ratio of 1.44, a current ratio of 2.22 and a debt-to-equity ratio of 0.01. The company has a market capitalization of $10.09 billion, a PE ratio of 359.04 and a beta of -0.27. The business has a 50 day moving average of $19.78 and a 200 day moving average of $16.56.

GameStop (NYSE:GME) last announced its earnings results on Friday, June 7th. The company reported ($0.12) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.03). GameStop had a net margin of 0.51% and a return on equity of 1.78%. The business had revenue of $881.80 million for the quarter, compared to analysts’ expectations of $995.30 million. During the same quarter last year, the business earned ($0.14) EPS. The company’s quarterly revenue was down 28.7% on a year-over-year basis. Equities research analysts anticipate that GameStop will post 0.14 EPS for the current year.

Insider Activity

In related news, General Counsel Mark Haymond Robinson sold 4,379 shares of the company’s stock in a transaction dated Tuesday, April 2nd. The shares were sold at an average price of $11.61, for a total value of $50,840.19. Following the completion of the sale, the general counsel now directly owns 64,308 shares of the company’s stock, valued at $746,615.88. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In other news, Director Lawrence Cheng bought 10,000 shares of GameStop stock in a transaction on Monday, April 8th. The stock was acquired at an average cost of $11.22 per share, for a total transaction of $112,200.00. Following the completion of the acquisition, the director now owns 65,088 shares of the company’s stock, valued at approximately $730,287.36. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Mark Haymond Robinson sold 4,379 shares of the business’s stock in a transaction dated Tuesday, April 2nd. The stock was sold at an average price of $11.61, for a total transaction of $50,840.19. Following the completion of the transaction, the general counsel now owns 64,308 shares of the company’s stock, valued at $746,615.88. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 29,636 shares of company stock valued at $346,474. 12.28% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Kestra Advisory Services LLC purchased a new position in shares of GameStop during the 3rd quarter valued at approximately $872,000. Coatue Management LLC acquired a new position in GameStop in the 4th quarter valued at $1,315,000. Rhumbline Advisers raised its stake in GameStop by 1.7% in the 3rd quarter. Rhumbline Advisers now owns 806,083 shares of the company’s stock valued at $13,268,000 after purchasing an additional 13,248 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in GameStop by 11.8% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 2,316,585 shares of the company’s stock valued at $38,131,000 after purchasing an additional 243,608 shares during the last quarter. Finally, Invesco Ltd. raised its stake in GameStop by 1.4% in the 3rd quarter. Invesco Ltd. now owns 442,444 shares of the company’s stock valued at $7,283,000 after purchasing an additional 6,311 shares during the last quarter. Hedge funds and other institutional investors own 29.21% of the company’s stock.

GameStop Company Profile

GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads.