GameStop Corp (NYSE:GME) shares are trending on Wednesday. Here’s a look at what’s going on.
What To Know: GameStop shares are moving on below average volume of about 1.9 million shares on Wednesday. The stock has been rangebound in recent weeks as retail traders have fixated on other so-called meme stocks like Opendoor, but shares appear to be close to breaking out ahead of earnings next week.
The stock shows a recent high at $23.73 and a low at $23.34, indicating a tight trading range. It's currently testing resistance at $23.73, while support is solid at $23.34, which aligns with recent swing lows.
The RSI is calculated at 53.45, indicating the stock is neither overbought nor oversold, suggesting a neutral momentum phase. The MACD shows a bullish crossover, with the MACD line at 0.15 and the signal line at 0.10, indicating potential upward momentum.
Benzinga Edge rankings show moderate fundamentals, with Value ranking 51.51/100, Growth ranking 99.76/100, Quality ranking N/A/100, and Momentum ranking 26.39/100.
GameStop is due to report second-quarter financial results after the market close on Sept. 9. Analysts expect the company to report earnings of 16 cents per share and revenue of $823.25 million, per Benzinga Pro estimates.
In the first quarter, GameStop reported mixed results, with revenue of $732.4 million missing analyst estimates of $754.24 million and adjusted earnings per share of 17 cents beating estimates of 4 cents.
GameStop and other meme names have seen increased attention from retail traders in recent months after a hedge fund manager highlighted Opendoor as a potential "100-bagger" in July, which sparked frenzied buying in several heavily shorted stocks. GameStop has short interest of 16.61%, according to Benzinga Pro.
Analysts remain cautious on GameStop with Wedbush most recently reiterating an Underperform rating and price target of $13.50.
GME Price Action: GameStop shares were down 0.66% at $23.26 at the time of publication on Wednesday, according to Benzinga Pro.
GameStop is currently trading slightly above its 50-day moving average of $23.09, indicating a short-term bullish trend. However, it remains below the 100-day and 200-day moving averages at $25.37 and $26.15 respectively, suggesting potential resistance levels ahead. The stock has found support near the lower end of its 52-week range of $19.30, which may provide a cushion against further declines.
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