Investors Buy Large Volume of Call Options on GameStop (NYSE:GME)

GameStop Corp. (NYSE:GME) was the target of unusually large options trading activity on Wednesday. Investors purchased 358,742 call options on the company. This represents an increase of 69% compared to the typical daily volume of 212,466 call options.

Insider Transactions at GameStop

In related news, General Counsel Mark Haymond Robinson sold 1,577 shares of the firm’s stock in a transaction dated Friday, January 3rd. The stock was sold at an average price of $31.07, for a total transaction of $48,997.39. Following the transaction, the general counsel now owns 42,350 shares of the company’s stock, valued at $1,315,814.50. This trade represents a 3.59 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Daniel William Moore sold 895 shares of the company’s stock in a transaction that occurred on Friday, January 3rd. The shares were sold at an average price of $31.07, for a total value of $27,807.65. Following the sale, the insider now directly owns 31,385 shares of the company’s stock, valued at approximately $975,131.95. This represents a 2.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 12.28% of the company’s stock.

Hedge Funds Weigh In On GameStop

Hedge funds have recently bought and sold shares of the company. Victory Capital Management Inc. grew its holdings in GameStop by 19.2% in the third quarter. Victory Capital Management Inc. now owns 72,982 shares of the company’s stock valued at $1,673,000 after purchasing an additional 11,749 shares during the last quarter. Thrivent Financial for Lutherans increased its position in GameStop by 40.0% during the 3rd quarter. Thrivent Financial for Lutherans now owns 91,868 shares of the company’s stock worth $2,107,000 after purchasing an additional 26,259 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in GameStop by 22.6% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 3,502,910 shares of the company’s stock valued at $80,322,000 after purchasing an additional 646,488 shares during the last quarter. Algert Global LLC lifted its holdings in GameStop by 270.5% in the 3rd quarter. Algert Global LLC now owns 150,526 shares of the company’s stock valued at $3,452,000 after purchasing an additional 109,900 shares in the last quarter. Finally, Penserra Capital Management LLC boosted its stake in shares of GameStop by 110.8% during the 3rd quarter. Penserra Capital Management LLC now owns 47,118 shares of the company’s stock worth $1,080,000 after purchasing an additional 24,761 shares during the last quarter. 29.21% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Separately, Wedbush reaffirmed an “underperform” rating and issued a $10.00 target price on shares of GameStop in a report on Monday.

GameStop Price Performance

GME opened at $28.38 on Thursday. GameStop has a 12 month low of $9.95 and a 12 month high of $64.83. The stock has a market capitalization of $12.68 billion, a P/E ratio of 157.68 and a beta of -0.29. The business has a 50 day simple moving average of $25.59 and a 200-day simple moving average of $25.69.

GameStop (NYSE:GME) last issued its earnings results on Tuesday, March 25th. The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.09 by $0.21. The company had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.48 billion. GameStop had a net margin of 1.45% and a return on equity of 2.11%. The business’s revenue was down 28.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.21 EPS. Research analysts anticipate that GameStop will post 0.08 EPS for the current year.

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.