GameStop Sees Shares Continue to Fall After Disappointing Halo 5 Sales and Bad Third Quarter Results


On Monday, GameStop Corp. (NYSE:GME) released its third quarter results, to the dismay of shareholders. The company saw net sales, same store sales, net income, and diluted EPS fall year-over-year. This, on top of news that the company saw disappointing sales numbers for one of the most anticipated games of the year, “Halo 5: Guardians”, has caused the stock to fall.

Good news for shareholders is that 2016 may be a better year for the gaming industry. Certainly Halo developer 343 Industries hopes so. They plan on releasing a large amount of updates in the form of free content for their latest game.

Meanwhile, GameStop stock continues to fall in morning trading. It is down 2.26% or $0.85 after the negative news, hitting $36.76 per share. About 1.51 million shares traded hands. GME has declined 6.54% since April 22, 2015 and is downtrending. It has underperformed by 5.52% the S&P500.

Out of 9 analysts covering GameStop Corp. (NYSE:GME), 5 rate it “Buy”, 0 “Sell”, while 4 “Hold”. This means 56% are positive. $60 is the highest target while $29.76 is the lowest. The $51.42 average target is 39.88% above today’s ($36.76) stock price. GameStop Corp. was the topic in 21 analyst reports since August 6, 2015 according to StockzIntelligence Inc. Oppenheimer downgraded the stock on November 24 to “Perform” rating. Pacific Crest downgraded the shares of GME in a report on November 13 to “Sector Weight” rating. Finally, Zacks upgraded the stock to “Hold” rating in an August 17 report.

The institutional sentiment increased to 0.97 in Q2 2015. Its up 0.09, from 0.88 in 2015Q1. The ratio is positive, as 40 funds sold all GameStop Corp. shares owned while 158 reduced positions. 61 funds bought stakes while 131 increased positions. They now own 136.54 million shares or 16.27% less from 163.06 million shares in 2015Q1.

Permit Capital Llc holds 4.37% of its portfolio in GameStop Corp. for 164,997 shares. Robotti Robert owns 167,070 shares or 3.98% of their US portfolio. Moreover, Tillar has 2.38% invested in the company for 61,158 shares. The Pennsylvania-based S&T Bank Pa has invested 2.37% in the stock. Lmm Llc, a Maryland-based fund reported 1.59 million shares.

GameStop Corp. is a multichannel video game, consumer electronics and wireless services retailer. The company has a market cap of $4.05 billion. The Firm operates its business in four Video Game Brands divisions: United States, Canada, Australia and Europe, and a Technology Brands segment. It has 10.09 P/E ratio. The Video Game Brands divisions include 6,206 stores, 4,138 of which are included in the United States segment.