- GameStop's CEO Ryan Cohen has significantly increased his stake by purchasing 500,000 shares.
- Despite strong insider buying, the market reacted negatively to GameStop's $1.3 billion convertible notes offering.
- Analyst forecasts suggest a potential downside for GameStop shares from current levels.
GameStop (NYSE: GME) shares experienced a boost in after-hours trading following a significant insider purchase by CEO Ryan Cohen. Cohen acquired 500,000 additional shares at $21.55 each, thereby increasing his ownership to approximately 8.4%. Nonetheless, despite this strategic move, GameStop shares fell 7% upon the announcement of a $1.3 billion convertible notes offering aimed at funding corporate initiatives, possibly including Bitcoin investments.
Wall Street Analysts Forecast
According to the one-year price targets from a single analyst, the average target price for GameStop Corp (GME, Financial) stands at $13.50. This estimate is consistent across both high and low projections, indicating a potential downside of 36.02% from the current share price of $21.10. For more detailed estimates, you can visit the GameStop Corp (GME) Forecast page.
The consensus recommendation from one brokerage firm positions GameStop Corp (GME, Financial) with an average brokerage recommendation of 5.0, categorizing it as "Sell." This rating scale extends from 1 to 5, with 1 denoting a Strong Buy and 5 indicating a Sell.
GuruFocus has estimated the GF Value for GameStop Corp (GME, Financial) to be $9.71 in one year. This suggests a projected downside of 53.98% from the current trading price of $21.10. The GF Value is a proprietary metric from GuruFocus that estimates the fair trading value of a stock, calculated based on historical trading multiples, past business growth, and future business performance expectations. More data can be accessed on the GameStop Corp (GME) Summary page.
- CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
- Insider Cluster Buys: Stocks that multiple company officers and directors have bought.
- Double Buys: Companies that both Gurus and Insiders are buying
- Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.
