Top 5 Power Players Investing Heavily in GameStop (GME) Stock in Q1
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n May, GameStop (NYSE: GME) saw a significant surge in its stock price, largely driven by the reappearance of Roaring Kitty, a key figure in the 2021 meme stock phenomenon. Earlier this month, GME hit a new 52-week high of $64.83, but it has since fallen to the low $20 range, marking a decline of over 65%.
Capitalizing on the increased stock price, GameStop announced an at-the-market (ATM) offering on May 17. By May 24, the company had completed the offering, issuing and selling 45 million shares, which generated gross proceeds of $933.4 million. These funds will be used for general corporate purposes.
"GameStop can take advantage of its share surge as long as the price remains elevated and they continue to have an at-the-market on file," said Art Hogan, Chief Market Strategist at B. Riley Wealth. However, Hogan noted that the company still has a considerable way to go before its intrinsic value is reflected in its stock price.
The video game retailer also released its preliminary first-quarter earnings report, projecting revenue between $872 million and $892 million, down from $1.237 billion the previous year. This represents a significant 29% decline from the midpoint of the forecast.
5 Investors Betting Big on GME Stock in Q1
Institutional ownership is crucial as it provides liquidity and support for stocks. However, GME stock is not particularly favored among institutional investors. In Q1, 237 institutional investors disclosed a stake in the company, a decrease of 20 from Q4. The total number of shares owned by these investors fell by 2.19% to 87.12 million.
Hedge funds, a segment of institutional investors, were even more pessimistic. Only 37 hedge funds reported a stake in Q1, down from 48 in the previous quarter. Hedge fund exposure to GME dropped by 19% to 8.73 million shares.
Here are GameStop’s top five shareholders:
- RC Ventures, owned by CEO Ryan Cohen: 36.84 million shares (as of May 22).
- Vanguard: 25.35 million shares, having sold 95,242 shares during Q1.
- BlackRock (NYSE: BLK): 22.61 million shares, acquiring 74,870 shares in Q1.
- State Street (NYSE: STT): 8.28 million shares, adding 305,631 shares in Q1.
- Geode Capital Management: 4.32 million shares, adding 183,062 shares in Q1.
