GameStop Corp. (GME) Maybe More Attractive Than It Looks

Considering all key technical indicators, a 80% Sell signal has occurred for GameStop Corp. (NYSE:GME). The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the GME’s short-term trajectory should know that short terms indicators for the stock averaged 60% Sell with an average daily trading volume over the past 20 days at 4782030 shares. GME stock has overall a 0.75% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 3947836 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 100% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $11.18. Below this, the next support is placed in the zone of $11.05. Till the time, the GME stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 31.69 on daily chart, which may remain a cause for comfort. If the price breaks below $11.05 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $11.41 mark may result into a pull-back move towards $11.51 level.

GameStop Corp. (GME) is projected to climb by 8.58 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $18 price as 12-month high target. This represents a whopping 59.29 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $12, which represents a return potential of 6.19 percent when compared to the closing price of the stock of $11.3 on Monday, February 11. The lowest price target for the stock is $9 — slightly more than -20.35 percent from GME’s current share price.

Here’s a rundown of insider trading activity for sense of GameStop Corp. (NYSE:GME). The earliest insider trade took place on 11/27/2017. Shern Stephanie M parted with a total of 4 thousand shares of company at average share price of $17.91. The total for the sales was set at $71.64 thousand. After this transaction, the Director account balance stood at 13.47 thousand shares. The stock lost -36.63 percent since that insider sale. On 01/13/2017, Shern Stephanie M, Director, sold 4 thousand shares at a price per share of $22.58. This removed 90.32 thousand shares from the insider’s fortune and the stock saw a -49.73 percent retreat in value since the news became public. This transaction left 10.93 thousand shares in the Director account. On 09/15/2016, EVP – President International Mauler Michael performed a purchase transaction worth $269.1 thousand. This purchase at $26.91 each has added 10 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -57.82 percent decrease since the transaction was reported. The insider now is left with 120.92 thousand shares remaining in the account. Shern Stephanie M, who performs the Director job, sold 1.77 thousand shares for $55.18 thousand. The disposal occurred on 03/29/2016 was priced at $31.19 per share. The share price plunged -63.61 percent since the reporting date. Shern Stephanie M now left with a stake of 9.51 thousand GME stock worth $107.43 thousand after the insider selling.

GME shares dropped -0.05 points or -0.44 percent on Monday to $11.3 with a light trade volume of 1.866 million shares. After opening the session at $11.38, the shares went as high as $11.39 and as low as $11.16, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.16 billion and now has 103.05 million shares outstanding. GameStop Corp. (GME) stock has lost -29.2 percent of market value in 21 trading days.

Analysts at Telsey Advisory Group lifted target price for shares of GameStop Corp. (NYSE:GME) but repeated their Market Perform recommendation for the stock in their opinion released on January 29. The price target has been raised from $14 to $11. Robert W. Baird analysts have downgraded their rating of GME stock from Outperform to Neutral in a separate flash note to investors on January 29. Analysts at Jefferies downgraded the stock to a Hold call from its previous Buy stance, in a research note that dated back to January 29.

GME stock has a trailing 3-year beta of 0.7, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$5.38 a share in the trailing twelve months. The stock’s value has fallen -10.46 percent year to date (YTD) against a decline of -28.62 percent in 12 month’s time. The company’s shares still trade -34.57 percent away from its 1-year high of $17.27 and 2.73 percent up from 52-week low of $11.00. The average consensus rating on the company is 2.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of GameStop Corp. (GME) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry GME operates in has an average P/E of 24.02. Its P/E ratio went as low as 6.94X and as high as 21.48 over the 5-year span. Further, it is sporting a 0.13 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.77. 32.4 percent is the gross profit margin for GameStop Corp. and operating margin sits at -5.6 percent. Along with this, the net profit margin is -6.4 percent.

GME will be declaring its Q4 financial results on March 28. Analysts are forecasting revenue to suffer decline of -6.4 percent to $3.28B in the next fiscal quarter, while earnings are seen soaring by nearly -21.78 percent to $1.58 per share. History has shown that shares in GameStop Corp. have gone down on 21 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.67 per share, better than the $0.57, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.08B, better than the $2.03B analysts expected. Earnings are estimated to increase by -77.8 percent this year, -22.87 percent next year and continue to increase by 0 percent annually for the next 5 years.