Wedbush analyst Michael Pachter just gave GameStop shares a new price target of $5.30. That’s a decline from his previous price target of $6 per share for GME stock. It also represents a roughly 75% potential downside compared to GameStop’s closing price on Wednesday.
The reasoning behind Pachter’s latest price target has to do with GameStop’s turnaround plan. The Wedbush analyst hasn’t seen positive results from the plan so far and doesn’t believe the company’s current efforts, such as its non-fungible token (NFT) initiative, are helping. Pachter also has concerns about long-term headwinds for the retailer.
The Price Target Drop Comes After Poor Q3 Results
In its most recent quarter, GameStop failed to meet analysts’ estimate of -28 cents per share when it reported an EPS loss of 31 cents. The company also brought in revenue of $1.19 billion, which missed Wall Street’s expectation of $1.35 billion.
Despite all of this, heavy trading is pushing shares of GME stock higher today. As of this writing, some 6 million shares are on the move. That’s well above the daily average trading volume of about 4.5 million shares.
GME stock is up 8.3% as of Thursday afternoon but down 36.9% since the start of the year.
Investors seeking more of the latest stock market news are in luck!
InvestorPlace is home to all of the hottest stock market coverage traders need for Thursday! Among that is what has shares of AMC Entertainment (NYSE:AMC), Xpeng (NYSE:XPEV) and Disney (NYSE:DIS) stock in the news today. You can catch up on all of that at the following links!
More Thursday Stock Market News
- AMC Stock: Do the AMC Bankruptcy Rumors Hold Water?
- Why Is Xpeng (XPEV) Stock Up 4% Today?
- DIS Stock Alert: What to Know as Disney Debuts Ad-Supported Tier
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.