Time to Sell GameStop Corp. (GME) After The Completion of This Bearish Multiple Bottom?

June 19, 2018 - By Christine McCrea

GameStop Corp. (NYSE:GME) Logo

Investors sentiment decreased to 1.11 in Q1 2018. Its down 0.35, from 1.46 in 2017Q4. It dived, as 43 investors sold GameStop Corp. shares while 79 reduced holdings. 48 funds opened positions while 88 raised stakes. 103.63 million shares or 4.81% less from 108.87 million shares in 2017Q4 were reported.
Hays Advisory Lc, a Tennessee-based fund reported 39,471 shares. Highbridge Cap Ltd Limited Liability Company has 0% invested in GameStop Corp. (NYSE:GME). Retirement Systems Of Alabama invested in 131,022 shares or 0.01% of the stock. Coatue Management Limited Liability Company holds 52,374 shares or 0.01% of its portfolio. Axa holds 0.01% or 116,000 shares in its portfolio. Hightower Advsr Ltd Limited Liability Company has 13,291 shares. Envestnet Asset has invested 0% of its portfolio in GameStop Corp. (NYSE:GME). Quantitative Systematic Strategies Ltd Liability Corporation holds 18,840 shares or 0.05% of its portfolio. Raymond James & Assoc reported 18,023 shares or 0% of all its holdings. Enterprise Services reported 296 shares stake. Moreover, Invesco Ltd has 0% invested in GameStop Corp. (NYSE:GME). Berson Corrado Invest Advisors Ltd Liability Corporation stated it has 0.16% of its portfolio in GameStop Corp. (NYSE:GME). American Assets Investment Mgmt Ltd Co accumulated 172,700 shares. Moreover, Cambridge Investment Rech Advsrs has 0.01% invested in GameStop Corp. (NYSE:GME) for 41,309 shares. Los Angeles Capital Mngmt Equity holds 0.02% or 311,560 shares in its portfolio.

The stock of GameStop Corp. (GME) shows a multiple bottoms pattern with $13.83 target or 9.00 % below today’s $15.20 share price. The 5 months chart pattern indicates high risk for the $1.55 billion company. It was reported on Jun, 19 by Finviz.com. If the $13.83 price target is reached, the company will be worth $139.32M less.
Multiple bottoms are very good trading chart patterns. These patterns have a low break even failure rate and decent average rise in a bull market, giving them a solid performance rank. Back-tests of such patterns show that the break even failure rate is 4%, the average rise: 37%, the throwback rate: 64% and the percentage of stocks meeting their price targets: 64%.

The stock increased 8.88% or $1.24 during the last trading session, reaching $15.2. About 23.79M shares traded or 316.31% up from the average. GameStop Corp. (NYSE:GME) has declined 46.36% since June 19, 2017 and is downtrending. It has underperformed by 58.93% the S&P500.

Analysts await GameStop Corp. (NYSE:GME) to report earnings on August, 23. They expect $0.07 EPS, down 53.33 % or $0.08 from last year’s $0.15 per share. GME’s profit will be $7.13 million for 54.29 P/E if the $0.07 EPS becomes a reality. After $0.38 actual EPS reported by GameStop Corp. for the previous quarter, Wall Street now forecasts -81.58 % negative EPS growth.

GameStop Corp. (NYSE:GME) Ratings Coverage

Among 5 analysts covering GameStop (NYSE:GME), 1 have Buy rating, 2 Sell and 2 Hold. Therefore 20% are positive. GameStop has $23.0 highest and $1200 lowest target. $20.50’s average target is 34.87% above currents $15.2 stock price. GameStop had 5 analyst reports since January 10, 2018 according to SRatingsIntel. Benchmark maintained the stock with “Sell” rating in Thursday, March 29 report. Loop Capital downgraded the stock to “Hold” rating in Tuesday, April 3 report. Credit Suisse maintained GameStop Corp. (NYSE:GME) rating on Tuesday, May 22. Credit Suisse has “Hold” rating and $1500 target. On Thursday, March 29 the stock rating was downgraded by Bank of America to “Underperform”. Robert W. Baird maintained GameStop Corp. (NYSE:GME) on Wednesday, January 10 with “Buy” rating.

More notable recent GameStop Corp. (NYSE:GME) news were published by: Streetinsider.com which released: “GameStop (GME) option implied volatility increases on report talks with PE firms after seeing takeover interest” on June 18, 2018, also Seekingalpha.com with their article: “GameStop Is A Value Gem At These Prices” published on June 18, 2018, Seekingalpha.com published: “Netflix to push interactive content” on June 15, 2018. More interesting news about GameStop Corp. (NYSE:GME) were released by: Seekingalpha.com and their article: “Gaming plans from Netflix send GameStop lower” published on June 13, 2018 as well as Seekingalpha.com‘s news article titled: “GameStop: Great Buy, Great Dividend, Nothing Like Blockbuster” with publication date: May 23, 2018.

GameStop Corp. operates as an omnichannel video game retailer. The company has market cap of $1.55 billion. It sells new and pre-owned video game hardware; video game software; pre-owned and value video game products; video game accessories, such as controllers, gaming headsets, virtual reality products, memory cards, and other add-ons; and digital products, including downloadable content, network points cards, prepaid digital and subscription cards, and digitally downloadable software. It has a 400 P/E ratio. The firm also sells mobile and consumer electronics, including wireless services and products, and accessories, as well as new and pre-owned smart phones; personal computer entertainment software in various genres, including sports, action, strategy, adventure/role playing, and simulation; and strategy guides, magazines, and interactive game figures.

GameStop Corp. (NYSE:GME) Institutional Positions Chart

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