GameStop Corp. Is a Buy; Strong Momentum from Option Traders

 GameStop Corp. Is a Buy; Strong Momentum from Option Traders

In today’s session GameStop Corp. (GME) registered an unusually high (686) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the December, 2016 call, expecting serious GME increase. With 686 contracts traded and 1714 open interest for the Dec, 16 contract, it seems this is a quite bullish bet. The option with symbol: GME161216C00024000 closed last at: $0.3 or 7.1% up. About 395,541 shares traded hands. GameStop Corp. (NYSE:GME) has declined 28.19% since April 7, 2016 and is downtrending. It has underperformed by 32.98% the S&P500.

GameStop Corp. (NYSE:GME) Ratings Coverage

Out of 16 analysts covering GameStop Corp. (NYSE:GME), 9 rate it a “Buy”, 1 “Sell”, while 6 “Hold”. This means 56% are positive. $60 is the highest target while $20.67 is the lowest. The $38.05 average target is 82.41% above today’s ($20.86) stock price. GameStop Corp. has been the topic of 45 analyst reports since August 6, 2015 according to StockzIntelligence Inc. Credit Suisse maintained GameStop Corp. (NYSE:GME) rating on Monday, March 28. Credit Suisse has “Neutral” rating and $30 price target. The rating was upgraded by Zacks on Monday, August 17 to “Hold”. The rating was upgraded by Telsey Advisory Group on Monday, June 27 to “Outperform”. SunTrust maintained GameStop Corp. (NYSE:GME) on Thursday, December 10 with “Buy” rating. The rating was maintained by Pacific Crest with “Overweight” on Saturday, August 29. The stock of GameStop Corp. (NYSE:GME) has “Buy” rating given on Wednesday, August 26 by Robert W. Baird. Benchmark maintained GameStop Corp. (NYSE:GME) rating on Monday, March 28. Benchmark has “Sell” rating and $26.33 price target. The rating was downgraded by Bank of America to “Neutral” on Tuesday, November 24. The stock of GameStop Corp. (NYSE:GME) has “Neutral” rating given on Wednesday, November 2 by PiperJaffray. The stock of GameStop Corp. (NYSE:GME) earned “Buy” rating by Bank of America on Monday, July 11.

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 dived, 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.
Moreover, Comml Bank Of New York Mellon has 0.03% invested in GameStop Corp. (NYSE:GME) for 4.15M shares. Winfield Associate Inc has invested 0% of its portfolio in GameStop Corp. (NYSE:GME). Convergence Investment Prtnrs Limited has invested 0.07% of its portfolio in GameStop Corp. (NYSE:GME). Asset Mgmt holds 9,859 shares or 0% of its portfolio. Teachers Retirement Sys Of The State Of Kentucky has 0.01% invested in the company for 26,600 shares. Moreover, National Bank & Trust Of The West has 0.05% invested in GameStop Corp. (NYSE:GME) for 14,321 shares. Midas Mngmt holds 0.78% or 51,500 shares in its portfolio. Vanguard Gru has 0.01% invested in the company for 7.95 million shares. Aperio Limited owns 123,725 shares or 0.03% of their US portfolio. Fort Lp has 15,407 shares for 0.17% of their US portfolio. Walleye Trading Limited Company last reported 2,903 shares in the company. Moreover, Centurylink Investment Mgmt has 0.18% invested in GameStop Corp. (NYSE:GME) for 18,760 shares. Analytic Invsts Ltd holds 0.84% of its portfolio in GameStop Corp. (NYSE:GME) for 2.66M shares. Old Mutual Customised Solutions (Proprietary) Ltd accumulated 0.03% or 5,100 shares. Hudson Bay Cap Management Limited Partnership holds 0.01% or 17,119 shares in its portfolio.

GameStop Corp. is an omnichannel video game retailer. The company has a market cap of $2.14 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 5.52 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 important recent GameStop Corp. (NYSE:GME) news were published by: Fool.com which released: “Why GameStop Corp. Stock Plunged Today” on November 02, 2016, also Fool.com published article titled: “2 Signs You Should Sell GameStop Corp. Stock”, Investorplace.com published: “Trade of the Day: GameStop Corp. (NYSE:GME)” on November 01, 2016. More interesting news about GameStop Corp. (NYSE:GME) was released by: Schaeffersresearch.com and their article: “Call Traders Go Wild as GameStop Corp. (GME) Nears Lows” with publication date: October 17, 2016.

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