GameStop Corp. (GME) Rating Increased to Hold at Zacks Investment Research

GameStop Corp. (GME) Rating Increased to Hold at Zacks Investment Research

According to Zacks, “GameStop continued with its positive earnings surprise streak for the sixth straight quarter, as it reported first-quarter fiscal 2017 results. Moreover, sales also beat the estimate after missing the same in the preceding three quarters. To the surprise, the better-than-expected numbers did not impress investors, as GameStop kept its view intact citing delay in launch of "Red Dead Redemption: 2" and less visibility for the demand of Nintendo Switch for the entire year. Moreover, we noted that although top line grew year over year, bottom line continues to decline, as a result the stock has underperformed the industry in the past six months. GameStop continues to expect fiscal 2017 comps to be in the range of flat to down 5% and continues to forecast 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.”

GameStop Corp. (NYSE:GME) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Monday.

A number of other research firms also recently commented on GME. Wedbush set a $25.00 price objective on shares of GameStop Corp. and gave the stock a “buy” rating in a report on Saturday, March 25th. Mizuho reaffirmed a “buy” rating and issued a $27.00 price target on shares of GameStop Corp. in a report on Tuesday, April 18th. Vetr downgraded shares of GameStop Corp. from a “strong-buy” rating to a “buy” rating and set a $26.42 price target on the stock. in a report on Wednesday, April 26th. Telsey Advisory Group downgraded shares of GameStop Corp. from an “outperform” rating to a “market perform” rating and reduced their price target for the company from $28.00 to $27.00 in a report on Monday, March 13th. Finally, Robert W. Baird reaffirmed an “outperform” rating and issued a $24.00 price target on shares of GameStop Corp. in a report on Sunday. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have assigned a buy rating to the stock. GameStop Corp. has a consensus rating of “Hold” and an average price target of $25.86.

Shares of GameStop Corp. (GME) opened at 22.57 on Monday. The stock has a market capitalization of $2.29 billion, a price-to-earnings ratio of 6.72 and a beta of 1.18. GameStop Corp. has a 1-year low of $20.10 and a 1-year high of $32.67. The stock’s 50 day moving average is $23.41 and its 200 day moving average is $24.20.

GameStop Corp. (NYSE:GME) last issued its earnings results on Thursday, May 25th. The company reported $0.63 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.51 by $0.12. The business had revenue of $2.05 billion for the quarter, compared to the consensus estimate of $1.96 billion. GameStop Corp. had a net margin of 4.32% and a return on equity of 18.74%. The business’s quarterly revenue was up 3.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.66 earnings per share. On average, equities analysts forecast that GameStop Corp. will post $3.31 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 20th. Shareholders of record on Wednesday, June 7th will be paid a dividend of $0.38 per share. The ex-dividend date is Monday, June 5th. This represents a $1.52 dividend on an annualized basis and a yield of 6.73%. GameStop Corp.’s dividend payout ratio (DPR) is 39.47%.

Several hedge funds have recently modified their holdings of the company. Skandinaviska Enskilda Banken AB publ boosted its stake in shares of GameStop Corp. by 0.5% in the first quarter. Skandinaviska Enskilda Banken AB publ now owns 1,224,400 shares of the company’s stock worth $27,610,000 after buying an additional 6,500 shares during the period. Achmea Investment Management B.V. acquired a new stake in shares of GameStop Corp. during the first quarter worth $2,325,000. Point72 Asset Management L.P. acquired a new stake in shares of GameStop Corp. during the first quarter worth $7,893,000. Ironwood Investment Management LLC boosted its stake in shares of GameStop Corp. by 2.3% in the first quarter. Ironwood Investment Management LLC now owns 30,520 shares of the company’s stock worth $688,000 after buying an additional 675 shares during the period. Finally, HighTower Advisors LLC acquired a new stake in shares of GameStop Corp. during the first quarter worth $2,660,000.

GameStop Corp. 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.new TradingView.widget({ “height”: 400, “width”: 625, “symbol”: “GME”, “interval”: “D”, “timezone”: “Etc/UTC”, “theme”: “White”, “style”: “1”, “locale”: “en”, “toolbar_bg”: “#f1f3f6”, “enable_publishing”: false, “hideideas”: true, “referral_id”: “2588”});

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