Will GameStop Corp. (GME) Short Squeeze Soon? The Stock Formed a Multiple Bottom Pattern

July 14, 2018 - By Alicia Butler

GameStop Corp. (NYSE:GME) Logo

Investors sentiment decreased to 1.11 in Q1 2018. Its down 0.35, from 1.46 in 2017Q4. It is 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.
Gotham Asset Mgmt Ltd owns 182,214 shares or 0.03% of their US portfolio. Illinois-based Peak6 Lp has invested 0.01% in GameStop Corp. (NYSE:GME). Stifel reported 12,310 shares. Moreover, Citigroup Inc has 0% invested in GameStop Corp. (NYSE:GME). 197,986 were accumulated by Dekabank Deutsche Girozentrale. Mackay Shields Limited Liability Co owns 467,410 shares for 0.04% of their portfolio. Employees Retirement Association Of Colorado accumulated 17,500 shares. Gargoyle Advisor Limited Company reported 0.09% of its portfolio in GameStop Corp. (NYSE:GME). Hays Advisory Ltd invested in 39,471 shares or 0.24% of the stock. Camelot Portfolios Limited Company invested in 48,798 shares or 0.29% of the stock. Quinn Opportunity Ptnrs Ltd Liability Com stated it has 0.08% in GameStop Corp. (NYSE:GME). Trust Department Mb Savings Bank N A reported 257 shares. Sprott has 0.75% invested in GameStop Corp. (NYSE:GME) for 285,000 shares. Ohio-based Keybank National Association Oh has invested 0% in GameStop Corp. (NYSE:GME). Hsbc Hldgs Public Limited Company holds 0% or 34,442 shares in its portfolio.

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 earnings per share, down 46.67 % or $0.07 from last year’s $0.15 per share. GME’s profit will be $8.15 million for 47.75 P/E if the $0.08 EPS becomes a reality. After $0.38 actual earnings per share 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. The rating was maintained by Benchmark on Thursday, March 29 with “Sell”. The firm has “Underperform” rating by Bank of America given on Thursday, March 29. The firm earned “Hold” rating on Tuesday, April 3 by Loop Capital. Credit Suisse maintained the stock with “Hold” rating in Tuesday, May 22 report.

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