GME: Should you perhaps sell?

As of Friday close, $GameStop(GME)$ stock was up $8.82, moving up 9.85 percent to $98.39. The average number of shares traded per day over the past five days has been 5,530,980 shares. 1 time new highs have been achieved over the past 5 days, with a -$16.31 fall in that time frame. In the last twenty days, the average volume was 2,695,690, while in the previous 50 days, it was 5,015,810.

Since last month, GME stock retreated -34.71%. Shares of the company fell to $77.77 on 05/12/22, the lowest level in the past month. A 52-week high of $344.66 was reached on 03/29/22 after having rallying from a 52-week low of $77.58. Since the beginning of this year, GME’s stock price has dropped by -33.69% or -$50.00, and marked a new high 4 times. However, the stock has declined by -71.45% since its 52-week high.

GameStop Corp. (GME) last reported insider trading activity 51 days ago on Mar 24. Attal Alain, the Director of the company, purchased of 1,500 shares for $129.91 on Mar 24. It resulted in a $194,865 investment by the insider. Cohen Ryan added 100,000 shares at an average price of $101.76 on Mar 22. The insider now owns 9,101,000 shares following the transaction. On Mar 22, SVP, Chief Accounting Officer Saadeh-Jajeh Diana sold 743 shares at $125.00 apiece. The transaction was valued at $92,875.

Valuation Metrics

The stock’s beta is -0.99. Besides these, the trailing price-to-sales (P/S) ratio of 1.30, the price-to-book (PB) ratio of 4.66.

The latest dividend of $0.38 per share was paid out, remained unchanged from last year’s $0.38.

Financial Health

In the three months ended October 30, GameStop Corp.’s quick ratio stood at 1.20, while its current ratio was 1.90, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending October 30 was 0.03, and the total debt-to-equity ratio was 0.03. On the profitability front, the trailing twelve-month gross margin is 22.40% percent. In the year ended October 30, operating margins totaled -6.40%. Based on annual data, GME earned $1.35 billion in gross profit and brought in $6.01 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -22.60%. Return on equity (ROE) for the past 12 months was -25.00%.

In GameStop Corp.’s quarter-end financial report for October 30, it reported total debt of $40.5 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. GME’s revenue rose 5.85% to $1.3 billion during the quarter, while net income inched up to $2.25 billion. While analysts expected GameStop Corp. to report -$0.52 quarterly earnings, the actual figure was -$1.39 per share, beating the consensus estimate by -167.30%. During the quarter, the company generated -$142.8 million in EBITDA. The liabilities of GameStop Corp. were 1.9 billion at the end of its most recent quarter ended October 30, and its total debt was $667.8 million. The value of shareholders’ equity is $76.34 million.

Technical Picture

This quick technical analysis looks at GameStop Corp.’s (GME) price momentum. With a historical volatility rate of 136.05%, the RSI 9-day stood at 37.05% on 13 May.

With respect to its five-day moving average, the current GameStop Corp. price is down by -14.22% percent or -$16.31. At present, GME shares trade -34.74% below its 20-day simple moving average and -37.39% percent below its 100-day simple moving average. However, the stock is currently trading approximately -16.91% below its SMA50 and -40.32% below its SMA200.

Stochastic coefficient K was 18.66% and Stochastic coefficient D was 10.80%, while ATR was 15.10. Given the Stochastic reading of 34.93% for the 14-day period, the RSI (14) reading has been calculated as 37.84%. As of today, the MACD Oscillator reading stands at -15.01, while the 14-day reading stands at -22.69.

Analyst Ratings

GameStop Corp. downgraded its rating on GameStop Corp. (NYSE: GME) to a Sell in a note to investors on April 12, 2021. The analysts firm previously had a Hold rating on the stock.GameStop Corp. (GME) has been rated Underweight by analysts. According to 1 brokerage firm, GME is a sell, and 1 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate GameStop Corp. stock as buy, with 0 recommending it as overweight.

With a median target price of $87.70, the current consensus forecast for the stock is $30.00 – $90.00. Based on these forecasts, analysts predict GameStop Corp. (GME) will achieve an average price target of $69.23.

source: fostersleader