GameStop (NYSE: GME) rating downgraded for strong sell at Zacks Investment Research

GameStop (NYSE: GME) has been downgraded from Zacks investment research from a “hold” note to a “strong sell” note in a note issued to investors on Monday, reports. They currently have a target price of $ 135.00 on the stock. Zacks investment researchThe company’s price target suggests a potential decline of 15.55% from the company’s current price.

According to Zacks, “GameStop stocks have fallen and have underperformed the industry for the past six months amid growing loss fears. The company posted lower than expected third quarter fiscal 2021 results. , the loss of income has widened compared to the period last year. This was the sixth loss reported in the past seven quarters. In addition, fewer details regarding the turnaround strategy and the lack of concrete guidance scared investors. Without a doubt, GameStop has encountered stiff competition as well as a growing consumer preference for downloading video game content. We note that software sales declined during the quarter. At the same time, adjusted selling and administrative expenses increased by 17.2% due to the costs associated with the transformation efforts undertaken to become a technology company. result, adjusted operating loss increased. “

Other analysts have also recently published research reports on the company. Wedbush lowered its price target on GameStop from $ 50.00 to $ 45.00 and set an “underperformance” rating for the company in a research report Thursday. Ascendiant Capital Markets reiterated a “sell” note on GameStop’s shares in a research report on Monday, September 27. Five equity research analysts rated the stock with a sell rating and one issued a conservation rating for the stock. According to MarketBeat, the company has a consensus rating of “Sell” and a consensus price target of $ 58.75.

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GME shares opened at $ 159.85 on Monday. The company has a market cap of $ 12.23 billion, a PE ratio of -77.52 and a beta of -2.02. The company has a current ratio of 1.90, a quick ratio of 1.73, and a debt ratio of 0.03. The stock has a 50-day moving average price of $ 191.35 and a 200-day moving average price of $ 195.31. GameStop has a 12-month low of $ 12.14 and a 12-month high of $ 483.00.

GameStop (NYSE: GME) last released its results on Wednesday, December 8. The company reported ($ 1.39) earnings per share for the quarter, missing Zacks’ consensus estimate of ($ 0.52) of ($ 0.87). The company posted revenue of $ 1.30 billion in the quarter, compared to a consensus estimate of $ 1.19 billion. GameStop had a negative return on equity of 8.05% and a negative net margin of 2.61%. The company’s quarterly revenue is up 29.1% from the same quarter last year. In the same quarter of the previous year, the company made EPS ($ 0.53). As a group, analysts expect GameStop to post earnings per share of -1.77 for the current year.

Institutional investors and hedge funds have recently changed their holdings in the company. Moors & Cabot Inc. purchased a new 3rd quarter stake in GameStop shares valued at approximately $ 451,000. Patriot Financial Group Insurance Agency LLC increased its position in GameStop by 83.0% during the 3rd quarter. Patriot Financial Group Insurance Agency LLC now owns 507 shares of the company valued at $ 89,000 after purchasing an additional 230 shares in the last quarter. American International Group Inc. increased its position in GameStop by 1,640.0% during the 3rd quarter. American International Group Inc. now owns 107,725 shares of the company valued at $ 18,903,000 after purchasing an additional 101,534 shares during the last quarter. Bank of New York Mellon Corp increased its position in GameStop by 10.2% during the 3rd quarter. Bank of New York Mellon Corp now owns 549,188 shares of the company valued at $ 96,366,000 after purchasing an additional 50,855 shares during the last quarter. Finally, Schonfeld Strategic Advisors LLC increased its position in GameStop by 6.1% during the 3rd quarter. Schonfeld Strategic Advisors LLC now owns 5,200 shares of the company valued at $ 912,000 after purchasing an additional 300 shares in the last quarter. Institutional investors and hedge funds hold 26.98% of the company’s shares.

GameStop Company Profile

GameStop Corp. is engaged in the retail sale of multi-channel video games, consumer electronics and wireless services. It operates through the following segments: United States, Canada, Australia and Europe. The United States segment includes the retail operations and e-commerce websites and, Game Informer magazine and Kongregate.

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Analyst Recommendations for GameStop (NYSE: GME)

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