Question

Look at the following stock report. What are the major conclusions that one can make about...

Look at the following stock report. What are the major conclusions that one can make about the company's financial state.

GameStop Corp. (GME)

Previous Close 10.14
Open 10.11
Bid 0.00 x 2200
Ask 0.00 x 2900
Day's Range 10.09 - 10.44
52 Week Range 10.07 - 17.27
Volume 3,535,053
Avg. Volume 3,705,216
Market Cap 1.055B
Beta (3Y Monthly) 0.52
PE Ratio (TTM) N/A
EPS (TTM) -5.81
Earnings Date Mar 28, 2019
Forward Dividend & Yield 1.52 (14.55%)
Ex-Dividend Date 2018-12-10
1y Target Est 12.00

Homework Answers

Answer #1

The major conclusions that one can make about company's financial state are given below.

1) The company's performance is below par which is visible from its stock price, 10.14 that is trading near 52 week low of 10.07

2) The company is loss making which is evident from the fact that it has a negative EPS of 5.81 and therefore, the PE ratio value metric becomes not applicable

3) The company's stock is thinly traded and lacks liquidity which is evident from the high bid ask spread

4) However, the company is expected to do well and deliver in the future which is evident from it's 1 year target stock price of $ 12, an increase of approximately 20% form the current levels.

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