GameStop Target of Unusually High Options Trading (NYSE:GME)

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

GameStop Price Performance

Shares of GME traded up $3.68 during trading hours on Wednesday, hitting $29.08. 31,546,209 shares of the company were exchanged, compared to its average volume of 19,398,992. The company has a market capitalization of $12.99 billion, a PE ratio of 161.34 and a beta of -0.29. The firm has a fifty day simple moving average of $25.59 and a 200-day simple moving average of $25.67. GameStop has a one year low of $9.95 and a one year high of $64.83.

GameStop (NYSE:GME) last released its quarterly earnings results on Tuesday, March 25th. The company reported $0.30 earnings per share for the quarter, beating analysts’ consensus estimates of $0.09 by $0.21. The business had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.48 billion. GameStop had a return on equity of 2.11% and a net margin of 1.45%. GameStop’s revenue for the quarter was down 28.5% on a year-over-year basis. During the same quarter last year, the company posted $0.21 EPS. Sell-side analysts expect that GameStop will post 0.08 EPS for the current year.

Insiders Place Their Bets

In related news, insider Daniel William Moore sold 895 shares of the firm’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 transaction of $27,807.65. Following the transaction, the insider now owns 31,385 shares in the company, valued at $975,131.95. This trade represents a 2.77 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Mark Haymond Robinson sold 1,577 shares of the company’s stock in a transaction that occurred on Friday, January 3rd. The stock was sold at an average price of $31.07, for a total value of $48,997.39. Following the completion of the sale, 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 disclosure for this sale can be found here. 12.28% of the stock is currently owned by insiders.

Hedge Funds Weigh In On GameStop

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of GameStop by 223.5% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 990 shares of the company’s stock worth $31,000 after buying an additional 684 shares during the period. New Wave Wealth Advisors LLC acquired a new stake in GameStop during the 4th quarter worth about $37,000. R Squared Ltd purchased a new position in GameStop during the 4th quarter valued at about $51,000. Bessemer Group Inc. increased its holdings in shares of GameStop by 67.2% in the 4th quarter. Bessemer Group Inc. now owns 1,720 shares of the company’s stock valued at $54,000 after purchasing an additional 691 shares during the period. Finally, UMB Bank n.a. lifted its position in shares of GameStop by 59.9% in the fourth quarter. UMB Bank n.a. now owns 1,820 shares of the company’s stock worth $57,000 after purchasing an additional 682 shares in the last quarter. 29.21% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

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

About GameStop

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.