What’s Next for GameStop Corp. (GME) After Forming Bearish Multiple Bottom?

July 14, 2018 - By Bradley Stiles

GameStop Corp. (NYSE:GME) Logo

Investors sentiment decreased to 1.11 in Q1 2018. Its down 0.35, from 1.46 in 2017Q4. It turned negative, 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.
Morgan Stanley invested 0% in GameStop Corp. (NYSE:GME). Glenmede Com Na owns 0% invested in GameStop Corp. (NYSE:GME) for 228 shares. Gemmer Asset Management Limited Liability Company has invested 0% in GameStop Corp. (NYSE:GME). Vanguard Gp Incorporated invested in 8.78 million shares or 0% of the stock. Asset Mgmt One Limited stated it has 18,700 shares. 300,000 are held by Heartland Advsrs Incorporated. Cubist Systematic Strategies Limited Com invested in 0.01% or 19,890 shares. Benjamin F Edwards Com holds 600 shares or 0% of its portfolio. Teacher Retirement Systems Of Texas holds 0% of its portfolio in GameStop Corp. (NYSE:GME) for 22,406 shares. Kbc Group Inc Nv has 14,056 shares for 0% of their portfolio. Employees Retirement Of Ohio stated it has 25,275 shares or 0% of all its holdings. Signaturefd Ltd Liability has invested 0.01% in GameStop Corp. (NYSE:GME). Mutual Of America Ltd holds 0.02% or 83,646 shares. Sei Com holds 0% of its portfolio in GameStop Corp. (NYSE:GME) for 11,677 shares. Blackrock Inc stated it has 9.41 million shares.

The stock of GameStop Corp. (GME) shows a multiple bottoms pattern with $14.36 target or 6.00 % below today’s $15.28 share price. The 8 months chart pattern indicates high risk for the $1.56B company. It was reported on Jul, 14 by Finviz.com. If the $14.36 price target is reached, the company will be worth $93.42 million 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 1.26% or $0.19 during the last trading session, reaching $15.28. About 2.33M shares traded. GameStop Corp. (NYSE:GME) has declined 46.36% since July 14, 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 $0.08 EPS, down 46.67 % or $0.07 from last year’s $0.15 per share. GME’s profit will be $8.15M for 47.75 P/E if the $0.08 EPS becomes a reality. After $0.38 actual EPS reported by GameStop Corp. for the previous quarter, Wall Street now forecasts -78.95 % 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 $18 highest and $1200 lowest target. $19.25’s average target is 25.98% above currents $15.28 stock price. GameStop had 5 analyst reports since March 29, 2018 according to SRatingsIntel. Bank of America downgraded the stock to “Underperform” rating in Thursday, March 29 report. The stock of GameStop Corp. (NYSE:GME) earned “Hold” rating by Loop Capital on Tuesday, April 3. Credit Suisse maintained GameStop Corp. (NYSE:GME) rating on Tuesday, May 22. Credit Suisse has “Hold” rating and $1500 target. Benchmark maintained the shares of GME in report on Thursday, March 29 with “Sell” rating.

More recent GameStop Corp. (NYSE:GME) news were published by: Seekingalpha.com which released: “GameStop: One Man’s Trash Is Another Man’s Treasure” on July 09, 2018. Also Seekingalpha.com published the news titled: “Excitement About GameStop For The Wrong Reasons” on June 25, 2018. Seekingalpha.com‘s news article titled: “GameStop Is A Value Gem At These Prices” with publication date: June 18, 2018 was also an interesting one.

GameStop Corp. operates as an omnichannel video game retailer. The company has market cap of $1.56 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 402.11 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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