Zacks Investment Research Upgrades Gamestop Corporation (GME) to Hold
Gamestop Corporation (NYSE:GME) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “GameStop has underperformed the industry in the past three months. Dismal stock performance can primarily be attributed to the delay in launch of "Red Dead Redemption: 2" and less visibility for the demand of Nintendo Switch for the entire year, which forced management to keep its view intact despite reporting better-than-expected results in first-quarter fiscal 2017. Moreover, we noted that although the top line grew year over year, the bottom line continues to decline. The company continues to expect fiscal 2017 comps to be in the range of flat to down 5% and forecasts earnings in the range of $3.10–$3.40 per share. Meanwhile, management expects sturdy performance of Technology Brands and Collectibles to continue in fiscal 2017. Further, it expects to enhance collectibles business to approximately $650–$700 million during fiscal 2017 and anticipates becoming a $1 billion business by the end of fiscal 2019.”
Other equities research analysts have also issued research reports about the stock. Vetr lowered shares of Gamestop Corporation from a “strong-buy” rating to a “buy” rating and set a $26.42 price objective on the stock. in a research note on Wednesday, April 26th. Mizuho reissued a “buy” rating and set a $27.00 price objective on shares of Gamestop Corporation in a research note on Tuesday, April 18th. Loop Capital reissued a “buy” rating and set a $28.00 price objective on shares of Gamestop Corporation in a research note on Sunday, May 28th. Oppenheimer Holdings, Inc. reissued a “hold” rating on shares of Gamestop Corporation in a research note on Thursday, May 25th. Finally, Bank of America Corporation set a $27.00 price objective on shares of Gamestop Corporation and gave the stock a “hold” rating in a research note on Saturday, May 13th. Two research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and seven have issued a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus price target of $24.84.
Gamestop Corporation (GME) traded down 0.50% during trading on Tuesday, hitting $22.06. 547,061 shares of the stock were exchanged. The stock has a 50 day moving average of $21.17 and a 200-day moving average of $23.06. Gamestop Corporation has a 52 week low of $20.10 and a 52 week high of $32.67. The stock has a market cap of $2.23 billion, a P/E ratio of 6.57 and a beta of 1.20.
Gamestop Corporation (NYSE:GME) last announced its quarterly earnings results on Thursday, May 25th. The company reported $0.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.12. Gamestop Corporation had a net margin of 3.99% and a return on equity of 17.55%. The company had revenue of $2.05 billion for the quarter, compared to analysts’ expectations of $1.96 billion. During the same quarter in the previous year, the company earned $0.66 earnings per share. Gamestop Corporation’s quarterly revenue was up 3.8% on a year-over-year basis. Equities analysts expect that Gamestop Corporation will post $3.32 EPS for the current fiscal year.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Cubic Asset Management LLC bought a new position in shares of Gamestop Corporation during the first quarter worth $887,000. Glen Harbor Capital Management LLC increased its position in shares of Gamestop Corporation by 769.9% in the first quarter. Glen Harbor Capital Management LLC now owns 94,640 shares of the company’s stock worth $2,134,000 after buying an additional 83,760 shares during the period. Meritage Portfolio Management bought a new position in shares of Gamestop Corporation during the first quarter worth $2,115,000. Buckhead Capital Management LLC increased its position in shares of Gamestop Corporation by 102.1% in the first quarter. Buckhead Capital Management LLC now owns 272,857 shares of the company’s stock worth $6,153,000 after buying an additional 137,864 shares during the period. Finally, James Investment Research Inc. increased its position in shares of Gamestop Corporation by 21.0% in the first quarter. James Investment Research Inc. now owns 4,630 shares of the company’s stock worth $104,000 after buying an additional 805 shares during the period. Institutional investors own 99.62% of the company’s stock.
Gamestop Corporation Company Profile
GameStop Corp. is an omnichannel video game retailer. The Company sells video game hardware, physical and digital video game software, video game accessories, as well as mobile and consumer electronics products and other merchandise through its GameStop, EB Games and Micromania stores. It operates its business in five segments, which consists of four Video Game Brands segments: United States, Canada, Australia and Europe, and Technology Brands segment.
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