Is GameStop Corp. (NYSE:GME) a first-rate stock to buy now? Investors who are in the know are buying. The number of long hedge fund bets went up by 10 in recent months.
According to WKRB, “Benchmark Co. initiated coverage on shares of GameStop Corp. (NYSE:GME) in a research report released on Thursday morning, TheFlyOnTheWall.com reports. The firm issued a hold rating and a $38.55 price objective on the stock.”
Consequently, we’re going to take a peek at the recent action encompassing GameStop Corp. (NYSE:GME).
What have hedge funds been doing with GameStop Corp. (NYSE:GME)?
At the end of the second quarter, a total of 31 of the hedge funds Insider Monkey tracks were bullish in this stock, a change of 48 percent from the previous quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were upping their holdings meaningfully.
When looking at the hedgies we track, Cliff Asness’s AQR Capital Management had the biggest position in GameStop Corp. (NYSE:GME), worth close to $162.4 million, comprising 0.6% of its total 13F portfolio. On AQR Capital Management’s heels is Chuck Royce of Royce & Associates, with a $125.7 million position; 0.4% of its 13F portfolio is allocated to the stock. Other hedge funds that hold long positions include John Murphy’s Alydar Capital, Alexander Mitchell’s Scopus Asset Management and D. E. Shaw’s D E Shaw.
With a general bullishness amongst the heavyweights, some big names have been driving this bullishness. Valinor Management LLC, managed by David Gallo, initiated the most valuable call position in GameStop Corp. (NYSE:GME). Valinor Management LLC had 24.2 million invested in the company at the end of the quarter. Thomas Lenox Kempner’s Davidson Kempner also initiated a $11.2 million position during the quarter. The other funds with new positions in the stock are Wojciech Uzdelewicz’s Espalier Global Management, Peter Muller’s PDT Partners, and Chao Ku’s Nine Chapters Capital Management.
What have insiders been doing with GameStop Corp. (NYSE:GME)?
Bullish insider trading is best served when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time period, GameStop Corp. (NYSE:GME) has seen zero unique insiders purchasing, and 12 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to GameStop Corp. (NYSE:GME). These stocks are RadioShack Corporation (NYSE:RSH), hhgregg, Inc. (NYSE:HGG), CONN’S, Inc. (NASDAQ:CONN), and Best Buy Co., Inc. (NYSE:BBY). This group of stocks belong to the electronics stores industry and their market caps resemble GME’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|RadioShack Corporation (NYSE:RSH)||17||2||0|
|hhgregg, Inc. (NYSE:HGG)||18||0||7|
|CONN’S, Inc. (NASDAQ:CONN)||28||0||17|
|Best Buy Co., Inc. (NYSE:BBY)||42||0||8|
GameStop Corp. was the second most widely held electronics stores industry stock among the hedge funds Insider Monkey tracks at the end of Q3.