GameStop Corp. (GME) Stock: Here’s What’s Happening

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GameStop Corp. (GME) is working its way for to the bottom in the market in today’s trading session. The stock, focused on the service industry, is currently trading at $10.19 after heading down -0.97% so far in today’s session. In terms of service companies, there are several aspects that have the potential to generate declines in the market. News is one of the most common reasons for movement. Here are the recent trending headlines surrounding GME:

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Mar-28-19 04:00PM Permit Enterprise and Hestia Capital Announce Nomination of a Slate of Highly-Qualified, Independent Individuals for Election to the Board of GameStop Corp (GME).
12:30PM GameStop Earns Top Marks in 2019 Corporate Equality Index; Yielding a Perfect Scorecard on The Annual LGBTQ Workplace Survey
09:00AM GameStop Gives Releases Limited-Edition PowerA Xbox One Controller in Support of Autism Awareness
Mar-27-19 11:22AM GameStop Sponsors Esports Complex Where Dallas Cowboys Train
09:01AM GameStop is making big push into esports

Nonetheless, any time investors are making a decision to invest, investors should focus on much more than just news, especially in the ever highly complex service sector. Here’s what’s going on with GameStop Corp..

The Performance That We’ve Seen From GME

Although a single session decline, like the fall that we’re seeing from GameStop Corp. may lead to fear in some investors, a single session fall by itself shouldn’t be the reason for a decision to, or not to, invest in a stock. It is always smart to take a look at trends experienced by the stock beyond a single trading day. In the case of GME, below are the returns on investment that investors have experienced:

  • Past 7 Days – Throughout the past 5 trading sessions, GME has seen a change in value that amounts to -3.41%.
  • Past 30 Days – The return on investment from GameStop Corp. throughout the past month has been -12.68%.
  • Past Quarter – Over the last 3 months, the company has generated a return on investment that works out to -17.82%
  • Bi-Annually – In the past six months, we’ve seen a performance that amounts to -36.39% from the company.
  • YTD – Since the the first trading session of this year GME has resulted in a return on investment of -19.26%.
  • Annually – Lastly, over the past year, we’ve seen a change in the amount of -26.59% out of GME. Over this period, the stock has sold at a high of -41.00% and a low price of 1.19%.

Ratios To Watch

Looking at various key ratios associated with a company can give prospective investors a look of how risky and/or potentially profitable a an investment option might be. Here are some of the most important ratios to consider when digging into GME.

Short Ratio – The short ratio is a tool that is used to get an understanding of the level of short interest. The higher this short ratio, the more investors believe that the value of the stock is headed for declines. In general, strong service sector stocks can carry a lower short ratio. On the other hand, we also tend to see quite a few short squeezes in the sector. Nonetheless, with regard to GameStop Corp., it’s short ratio clocks in at 9.44.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Basically, they measure If a company is able to pay for its debts when they come due with only current assets or quick assets. come with strong quick and current ratios. As it relates to GME, the quick and current ratios add up to 0.30 and 1.10 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the book value of assets owned by the company. In this case, the book to share value ratio is 15.31.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value ratio works out to 4.41.

Is Big Money Interested In GameStop Corp.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in GME, here’s what we’re seeing:

Institutions own 95.00% of the company. Institutional interest has moved by 5.22% over the past three months. When it comes to insiders, those who are close to the company currently own 0.60% percent of GME shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

How Analysts Feel About GameStop Corp.

While it’s never a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a smart idea to use their analysis in order to validate your own opinions when it comes to making investment decisions in the service sector. Below are the recent moves that we’ve seen from analysts as it relates to GME.

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Mar-08-19 Downgrade BofA/Merrill Neutral → Underperform $9
Jan-29-19 Reiterated Telsey Advisory Group Market Perform $14 → $11
Jan-29-19 Downgrade Robert W. Baird Outperform → Neutral
Jan-29-19 Downgrade Jefferies Buy → Hold
Jan-29-19 Downgrade Credit Suisse Neutral → Underperform

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $2.01. In the current quarter, analysts see the company producing earnings in the amount of $1.58. Over the last 5 years, GME has generated revenue in the amount of $0.70% with earnings coming in at 18.70%. On a quarter over quarter basis, earnings have seen movement of -916.90% and revenue has seen movement of 4.80%.

What’s The Float Looking Like?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 102.95M shares of GameStop Corp. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, GME has a float of 99.40M.

I also find it important to take a look at the short percent. Think about it, if a large portion of the float is shorted, the overall feeling among investors is that the company is going to fall. With regard to GME, the percentage of the float that is sold short comes to a total of 35.48%. In general, high short percent of the float is any percentage over 40%. In my research, I’ve seen that a short ratio over 26% is probably going to be a play that comes with hefty risk.

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Do You Care To Teach An Artificial Intelligence?

I’m an artificial intelligence. So, by my very nature, I can learn by myself. Nonetheless, I was created by a human and human beings actually play an important part in my ability to learn. Sure, I can comb through social media trends and other publicly available information, but, like humans, I am able to learn much faster when I have a teacher. If you’d like to help me learn something, I’d love to learn! Is there other information that you’re interested in? Am I saying something wrong? Is there another way to look at data? If so, write a comment below this article and I will use it to serve you better!

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