GameStop Stock Split Implications for GME Stocks
After a long-term downtrend, GameStop stock has finally broken out of this pattern and looks set for higher highs. GME is back-testing its break-out and has previously broken out from late March highs around $200.
Back-tests going as far back as late Jan. 21 also point to GameStop stock making new highs. Therefore, a stock split, in this case, could have bullish implications for GME. This article will examine the factors influencing short interest.
Short interest growing in GME stock
Shareholders of GameStop stock have more to worry about than beating short sellers. Increasing short interest might stymie their long-term growth plans. GameStop stock has historically traded against the market’s trends, and gloomy macroeconomic conditions have hit high-growth stocks hard.
However, the stock may continue to rely on its larger market view. The report states that short interest in GME stocks has been increasing since the last report, which suggests that a trend of bearish and bullish investor sentiment is underway.
While this growth does not indicate a stock’s imminent collapse, it does mean that some investors are turning bearish on the company. For instance, when the SEC reported that short interest in GME was increasing, it noted that shares of the company experienced sharp price increases when known short sellers covered their positions.
GameStop (GME) has been facing bullish short-sellers for over fourteen months, and this trend is catching up with the company. The number of short positions has increased over time and is now higher than it was on February 14.
If GameStop can avoid another short squeeze, this company may continue to benefit from its strong commercial performance. The company’s short-interest ratio is significantly lower than its peers, indicating that most wrong-way bets have been retracted.
GameStop stock has not even cracked the top twenty most heavily shorted stocks. This implies that the price trend of the meme stock may continue to decline. If the trend continues, it could be the start of a short squeeze, though it is not likely to occur anytime soon.
GameStop stock split
The game retailer announced the GameStop stock split on Thursday. The new shares will increase in value from 300 million to one billion. The company will use the new shares for a variety of purposes, including allowing shareholders more flexibility for future corporate needs.
The company did not announce when it will issue a definitive proxy statement or hold its annual meeting. Earlier this month, GameStop Chairman Ryan Cohen bought 100,000 shares, increasing his ownership to 11.9%.
The company is also seeking to increase the number of shares on the market by splitting them in half. The change is expected to increase liquidity and attract retail investors. However, the exact split ratio has yet to be announced.
Although there are various opinions about this, most analysts believe the split will result in a three-to-one stock split. The new stock price is expected to be higher than the old one, but investors can also consider a fractional share purchase if they are unable to invest a larger amount of money.
Despite the recent downturn, the GameStop stock split is still a viable buy for investors. The company is currently trading at a premium compared to competitors such as Costco Wholesale, Target, and Walmart. GameStop has a superior long-term outlook compared to its competitors.
In the short term, the stock may rise as a result of the hype. If you have a large enough position in GameStop stock, you might even be able to buy shares at a lower price if short-sellers are attracting you to the stock market.
However, there is one important reason why investors should be aware of the GameStop stock split. Its chairman, Ryan Cohen, is also the co-founder of online pet retailer Chewy. The company is investing in blockchain, NFTs, and cryptocurrency initiatives.
In addition to the GameStop stock split, the company recently hired former Amazon executives to become the company’s new CEO and CFO. This move should help the company increase its stock value and attract small retail investors.
In addition to its growth in the NFT space, GameStop also plans to issue a stock split in June. Whether this will boost GameStop’s shares depends on what the company’s board decides. It is unlikely to affect GameStop’s dividend, but it is worth checking out.
With this newfound interest, the company’s stock price is set to increase considerably. It is important to note that the company has not yet announced the exact dates of its June shareholder meeting. There is also a risk that GameStop will not issue enough stock dividends to cover the short positions and counterfeit shares.
The company’s ultimate obligation to distribute stock split share dividends remains with GameStop. The stock split will provide investors with a steady flow of income, even if it is not high enough to buy the entire company. And if GameStop’s shareholders approve the split, the GameStop stock price will likely increase by over 100%.
Potential bullish impact of a stock split on GME stock
GameStop (GME) recently announced plans to implement a stock split to raise its authorized share count from 300 million to one billion. The stock split isn’t expected to change the company’s fundamentals, but it is a catalyst for short-term gains for investors.
GameStop plans to request stockholder approval at its annual meeting to increase the number of Class A shares to one billion. This stock split will be implemented through a stock dividend.
For investors who want to know what a stock split can do for their portfolio, a stock split can increase the share count of a company, which can be advantageous for investors who want to own whole shares. On average, stocks split at least 4% higher after the event.
However, the effect is limited by the stock price of the company’s shares, which typically peaks around the time of a split announcement. While game retailers often announce a stock split to increase shareholder value, they’re not the only ones betting on GameStop’s announcement.
Several high-profile companies have recently announced share splits. Alphabet recently indicated that it may split again. Another example is GameStop, which recently announced a dividend stock split that will increase its share count from 300 million shares to one billion shares.
The recent share price rise in GameStop shares is being driven by options activity. While there are risks that a stock split will trigger a new gamma squeeze, it does seem likely that it will be a catalyst for the share price. GameStop also has some interesting moves underway:
it has hired Ryan Cohen, the co-founder of online pet retailer Chewy, as its chairman. Besides that, it has invested in blockchain and cryptocurrency initiatives and hired former Amazon executives to be its chief financial officer and CEO.
The potential bullish impact of a stock split on GameStop’s shares has been well-received by investors. While it is unclear exactly how the stock split ratio will affect its share price, the stock may remain more accessible to retail investors after it splits.
The split could also help GME reach new heights of liquidity. However, investors should remember that there is no guarantee that future results will be positive or bearish. The reverse stock split in Citigroup, for example, was a bullish signal to investors, as the company has had four consecutive years of profitable quarters.
While this doesn’t mean disaster for the stock, the timing is crucial. Despite the bullish trend, the stock split may not help investors reach their financial goals. Instead, investors should be cautious about investing in stocks undergoing a stock split.
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