Summary:
- GameStop's stock price surged by 11% after CEO Ryan Cohen's strategic share purchase.
- Analysts predict a significant downside potential, highlighting a GF Value of $9.71.
- The current market sentiment remains "Sell" with a negative consensus from brokerage firms.
Shares of GameStop (GME, Financial) experienced an 11% jump, reaching $23.49 on Friday. This rise was fueled by CEO Ryan Cohen's acquisition of 500,000 shares at $21.55 each, effectively boosting his stake to over 8.4% of the company. The timing of this purchase coincides with GameStop's decision to integrate bitcoin into its investment strategy and its recent fourth-quarter earnings announcement.
Wall Street Analysts Forecast
According to projections from one analyst, the one-year average price target for GameStop Corp (GME, Financial) is pegged at $13.50. This target presents both a high and low estimate of $13.50, suggesting a potential downside of 42.53% from the current stock price of $23.49. For a detailed breakdown, please visit the GameStop Corp (GME) Forecast page.
The consensus from one brokerage firm gives GameStop Corp (GME, Financial) an average brokerage recommendation of 5.0, indicating a "Sell" status. The rating scale spans from 1 to 5, where 1 denotes a Strong Buy, and 5 represents a Sell.
Further analysis by GuruFocus estimates the GF Value for GameStop Corp (GME, Financial) at $9.71 in one year, implying a downside of 58.66% from its current trading price of $23.49. The GF Value is an assessment of the fair value at which the stock should ideally trade. This is determined by examining historical trading multiples, past business growth, and future performance projections. Additional insights are accessible on the GameStop Corp (GME) Summary page.
