GameStop Experiences Surge in Call Option Volume

On a recent trading day, GameStop Corp. (NYSE: GME) saw a significant spike in options trading activity, with investors purchasing 66,937 call options on the company. This volume marks a substantial 34% increase over the average number of call options typically bought on a daily basis, which is around 49,769.

Insider Transactions

Amid other developments, GameStop's Director Lawrence Cheng demonstrated confidence in the company by acquiring 4,768 shares at an average price of $17.64 per share, totaling $84,107.52 in value. Post-purchase, Cheng directly holds 53,856 GameStop shares, valued at nearly $950,019.84. These purchases were made public via the Securities & Exchange Commission filings. Besides Cheng's investment, GameStop's General Counsel, Mark Haymond Robinson, sold 11,966 shares at an average price of $15.48 each, totaling $185,233.68. Post-sale, Robinson still owns 69,377 shares valued at around $1,073,955.96. Within the past quarter, insiders have sold 16,872 shares, worth approximately $260,835, and corporate insiders currently own 12.64% of GameStop's stock.

Hedge Fund Activity

Hedge funds and institutional investors have also shown interest in GME stock, with several adjusting their holdings. Fifth Third Bancorp increased its position by 366.7% during the second quarter, owning 1,036 shares valued at $25,000. C M Bidwell & Associates Ltd. and Ameritas Advisory Services LLC have opened new positions, while Covestor Ltd expanded its stake by 323.2%. IFP Advisors Inc doubled its ownership in the third quarter, now holding 2,708 shares worth $45,000. Overall, 39.46% of GameStop shares are owned by these institutional players.

Analyst Opinions

Several analysts have shared their views on GameStop. Wedbush downgraded their price target to $6 and rated the stock as 'underperform.' On the other hand, GameStop was upgraded from 'sell' to 'hold' by analysts at StockNews.com.

Company's Financial Performance

GameStop's share price was $13.51 on the opening of the mentioned trading day. The company holds a market cap of $4.12 billion, a PE ratio of -40.94, and a beta of -0.21. Its 50-day and 200-day moving averages are $14.19 and $19.07, respectively. The stock has fluctuated between a 52-week low of $11.82 and a high of $27.87. The balance sheet shows a debt-to-equity ratio of 0.02, a current ratio of 1.87 and a quick ratio of 1.24.

Looking at the quarterly earnings reported on September 6th, GameStop beat estimates by posting a loss of $0.03 per share versus the expected $0.14 loss. The revenue came in at $1.16 billion, marginally surpassing analyst predictions. Compared to the prior year, revenue rose by 2.4%, but the net margin was negative at 1.72%, and return on equity was negative 7.50%. Analysts project that GameStop will report an EPS of -$0.12 for the current fiscal year.

About GameStop

GameStop Corp. is a specialty retail company that delivers games and entertainment products through both brick-and-mortar stores and e-commerce platforms. Its offerings span across several countries, including new and pre-owned gaming platforms, various accessories, gaming software, and digital content.

GameStop, Options, Trading