5 Investors Betting Big on GameStop (GME) Stock in Q1
GameStop (NYSE:GME) stock saw a surge in May with the return of Roaring Kitty, a key figure in the 2021 meme stock rally. Despite hitting a new 52-week high of $64.83, the stock has since dropped by over 65% to the low $20 range.
Taking advantage of the elevated stock price, GameStop announced an at-the-market (ATM) offering on May 17. The offering was completed on May 24, with the company issuing and selling 45 million shares, raising $933.4 million for general corporate expenses.
Chief Market Strategist Art Hogan from B. Riley Wealth noted that GameStop can capitalize on its share surge as long as the price remains high and the company continues to have an ATM on file. However, Hogan emphasized that GameStop still has progress to make before its stock price aligns with its real value.
In its preliminary first-quarter earnings report, GameStop expects revenue to decrease to between $872 million and $892 million compared to $1.237 billion the previous year, representing a 29% decline at the midpoint.
Tracking institutional ownership is crucial for stocks like GME, even though institutional investors have shown limited interest in the company. In Q1, 237 13F filers disclosed a stake in GameStop, with the total shares owned decreasing by 2.19% to 87.12 million. Hedge funds were even more bearish, with 37 reporting a stake in Q1, down from 48 in the previous quarter.
Here are the top five shareholders of GameStop as of Q1:
• RC Ventures, owned by CEO Ryan Cohen: 36.84 million shares.
• Vanguard: 25.35 million shares.
• BlackRock (NYSE:BLK): 22.61 million shares.
• State Street (NYSE:STT): 8.28 million shares.
• Geode Capital Management: 4.32 million shares.
Investor Eddie Pan, specializing in institutional investments and insider activity, does not hold any positions in the securities mentioned. The opinions expressed are subject to the InvestorPlace.com Publishing Guidelines, focusing on the latest news related to popular stocks.
