The stock price of Gamestop Corporation (NYSE: GME) has plunged by -0.97 when compared to previous closing price of 16.47, but the company has seen a 44.46% gain in its stock price over the last five trading sessions. InvestorPlace reported 2024-05-06 that GameStop (NYSE: GME ) stock is a hot topic among traders on Monday as recent volatility has investors wondering if meme trading is making a return. The big news here is that GME stock managed to rally more than 50% over two days last week.
Is It Worth Investing in Gamestop Corporation (NYSE: GME) Right Now?
Gamestop Corporation (NYSE: GME) has a higher price-to-earnings ratio of 769.34x compared to its average ratio. GME has 36-month beta value of -0.41. Analysts have mixed views on the stock, with 2 analysts rating it as a “buy,” 2 as “overweight,” 7 as “hold,” and 1 as “sell.”
The public float for GME is 266.95M, and currently, short sellers hold a 22.46% ratio of that float. The average trading volume of GME on May 07, 2024 was 4.72M shares.
GME’s Market Performance
GME’s stock has seen a 44.46% increase for the week, with a 44.98% rise in the past month and a 21.17% gain in the past quarter. The volatility ratio for the week is 19.28%, and the volatility levels for the past 30 days are at 8.61% for Gamestop Corporation The simple moving average for the last 20 days is 46.32% for GME stock, with a simple moving average of 6.53% for the last 200 days.
Analysts’ Opinion of GME
Many brokerage firms have already submitted their reports for GME stocks, with Wedbush repeating the rating for GME by listing it as a “Underperform.” The predicted price for GME in the upcoming period, according to Wedbush is $6.20 based on the research report published on June 08, 2023 of the previous year 2023.
Ascendiant Capital Markets, on the other hand, stated in their research note that they expect to see GME reach a price target of $10, previously predicting the price at $12. The rating they have provided for GME stocks is “Sell” according to the report published on April 12th, 2021.
Telsey Advisory Group gave a rating of “Underperform” to GME, setting the target price at $30 in the report published on March 24th of the previous year.
GME Trading at 27.95% from the 50-Day Moving Average
After a stumble in the market that brought GME to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -41.01% of loss for the given period.
Volatility was left at 8.61%, however, over the last 30 days, the volatility rate increased by 19.28%, as shares surge +50.60% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +20.73% upper at present.
During the last 5 trading sessions, GME rose by +44.46%, which changed the moving average for the period of 200-days by -28.81% in comparison to the 20-day moving average, which settled at $11.42. In addition, Gamestop Corporation saw -6.96% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at GME starting from Moore Daniel William, who sale 7,779 shares at the price of $10.20 back on Apr 24 ’24. After this action, Moore Daniel William now owns 13,606 shares of Gamestop Corporation, valued at $79,362 using the latest closing price.
Robinson Mark Haymond, the General Counsel and Secretary of Gamestop Corporation, sale 13,471 shares at $10.15 during a trade that took place back on Apr 23 ’24, which means that Robinson Mark Haymond is holding 50,837 shares at $136,798 based on the most recent closing price.
Stock Fundamentals for GME
Current profitability levels for the company are sitting at:
- -0.01 for the present operating margin
- 0.25 for the gross margin
The net margin for Gamestop Corporation stands at 0.0. The total capital return value is set at -0.02. Equity return is now at value 0.50, with 0.22 for asset returns.
Based on Gamestop Corporation (GME), the company’s capital structure generated 0.14 points at debt to capital in total, while cash flow to debt ratio is standing at -0.94. The debt to equity ratio resting at 0.16. The interest coverage ratio of the stock is 1.38.
Currently, EBITDA for the company is 26.5 million with net debt to EBITDA at -12.03. When we switch over and look at the enterprise to sales, we see a ratio of 0.89. The receivables turnover for the company is 57.94for trailing twelve months and the total asset turnover is 1.86. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.11.
Conclusion
To put it simply, Gamestop Corporation (GME) has had a mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
