Time to Sell GameStop Corp. After Today’s Option Traders Bearish Bets?

 Time to Sell GameStop Corp. After Today's Option Traders Bearish Bets?

In today’s session GameStop Corp. (GME) recorded an unusually high (3,588) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious GME decrease. With 3,588 contracts traded and 12954 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: GME161021P00026000 closed last at: $0.85 or 73.5% up. About 4.26M shares traded hands or 102.86% up from the average. GameStop Corp. (NYSE:GME) has declined 19.84% since March 14, 2016 and is downtrending. It has underperformed by 25.45% the S&P500.

GameStop Corp. (NYSE:GME) Ratings Coverage

Out of 15 analysts covering GameStop Corp. (NYSE:GME), 10 rate it a “Buy”, 1 “Sell”, while 4 “Hold”. This means 67% are positive. GameStop Corp. has been the topic of 41 analyst reports since August 6, 2015 according to StockzIntelligence Inc. Pacific Crest downgraded the stock to “Sector Weight” rating in Friday, November 13 report. On Monday, August 31 the stock rating was maintained by Pacific Crest with “Overweight”. On Wednesday, August 12 the stock rating was maintained by Piper Jaffray with “Overweight”. The rating was maintained by Telsey Advisory Group with “Market Perform” on Wednesday, January 13. The stock of GameStop Corp. (NYSE:GME) has “Neutral” rating given on Monday, March 28 by Credit Suisse. Robert W. Baird maintained it with “Outperform” rating and $40 target price in Friday, August 26 report. Benchmark maintained the shares of GME in a report on Monday, March 28 with “Sell” rating. The firm earned “Outperform” rating on Friday, July 1 by Macquarie Research. The rating was upgraded by Zacks on Monday, August 17 to “Hold”. The stock of GameStop Corp. (NYSE:GME) earned “Buy” rating by Robert W. Baird on Wednesday, August 26.

According to Zacks Investment Research, “GameStop Corp. is the world’s largest video game and entertainment software retailer. The company operates 4,816 retail stores across the United States and in fifteen countries worldwide. The company also operates two e-commerce sites, GameStop.com and EBgames.com, and publishes Game Informer® magazine, a leading multi-platform video game publication. GameStop Corp. sells new and used video game software, hardware and accessories for next generation video game systems from Sony, Nintendo, and Microsoft. In addition, the company sells PC entertainment software, related accessories and other merchandise.”

Insitutional Activity: The institutional sentiment decreased to 0.64 in 2016 Q2. Its down 0.29, from 0.93 in 2016Q1. The ratio worsened, as 108 funds sold all GameStop Corp. shares owned while 120 reduced positions. 39 funds bought stakes while 107 increased positions. They now own 107.16 million shares or 15.47% less from 126.78 million shares in 2016Q1.
Barclays Public Limited Co last reported 55,842 shares in the company. The Ohio-based Winfield Associates Inc has invested 0% in GameStop Corp. (NYSE:GME). Pnc Fincl Svcs Grp owns 10,241 shares or 0% of their US portfolio. Wellington Management Gp Llp has 0% invested in the company for 231,678 shares. Teachers Retirement System Of The State Of Kentucky owns 26,600 shares or 0.01% of their US portfolio. Mckinley Cap Mgmt Ltd Company Delaware has invested 0% of its portfolio in GameStop Corp. (NYSE:GME). Freestone Cap Llc accumulated 0.06% or 22,359 shares. Sg Americas Securities Ltd Liability Co, a New York-based fund reported 12,951 shares. Analytic Investors Limited Liability Company has 0.84% invested in the company for 2.66M shares. Northcoast Asset Mngmt Ltd Llc reported 97,378 shares or 0.18% of all its holdings. Texas Permanent School Fund holds 0.03% of its portfolio in GameStop Corp. (NYSE:GME) for 79,482 shares. Alpha Windward Ltd Liability Corporation last reported 15,306 shares in the company. Lpl Financial Lc accumulated 12,848 shares or 0% of the stock. Argi Invest Service Llc accumulated 0.18% or 67,287 shares. Transamerica Fincl Advsr Incorporated has 112 shares for 0% of their US portfolio.

GameStop Corp. is an omnichannel video game retailer. The company has a market cap of $2.57 billion. The Firm 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 has a 6.55 P/E ratio. The Firm operates its business in four Video Game Brands divisions: United States, Canada, Australia and Europe, and Technology Brands segment.

GME Company Profile

GameStop Corp., incorporated on April 13, 2005, is an omnichannel video game retailer. The Firm 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. The Firm operates its business in four Video Game Brands divisions: United States, Canada, Australia and Europe, and Technology Brands segment. Each of the Video Game Brands divisions consists primarily of retail operations, with all stores engaged in the sale of new and pre-owned video game systems, software and accessories, which it refers to as video game products, new and pre-owned mobile devices and related accessories. The Company’s Video Game Brands stores sell various types of digital products, including downloadable content, network points cards, prepaid digital, prepaid subscription cards and digitally downloadable software, and also sell certain mobile and consumer electronics products and collectible products. The Company’s Technology Brands segment includes its Spring Mobile and Simply Mac businesses.

More news for GameStop Corp. (NYSE:GME) were recently published by: Detroitnews.com, which released: “COO: GameStop to sell out of PlayStation VR goggles” on October 15, 2016. Seekingalpha.com‘s article titled: “Why GameStop Corp. Could Appreciate More Than 50% By The End Of 2017” and published on September 20, 2016 is yet another important article.

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