GameStop Corp. (GME): What’s the Story?

GameStop Corp. (GME) is an interesting player in the Services space, with a focus on Electronics Stores. The stock has been active on the tape, currently trading at $14.05, down from yesterday’s close by -1.68%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

GameStop Corp. (GME) currently trades with a market capitalization of $1.42 Billion. That value represents a market adjusting for revenues that have been falling by -5.47 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $321.5 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.08 on a per share basis this quarter. Perhaps, that suggests something about why 3.66% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, GameStop Corp. recorded a 52-week high of $22.37. It is now trading 8.32% off that level. The stock is trading $13.44 its 50-day moving average by -0.61%. The stock carved out a 52-week low down at $12.20.

In recent action, GameStop Corp. (GME) has made a move of +5.96% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.11, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 43.80% with $99.50 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of GME.

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