GameStop (NYSE:GME) stock got a major boost in May from the return of Roaring Kitty, who was an instrumental figure in the 2021 meme stock rally. Indeed, GME notched a new 52-week high of $64.83 earlier this month but is now trading in the low $20 range, reflecting a drop of more than 65%.
GameStop took advantage of its heightened stock price by announcing an at-the-market (ATM) offering on May 17. The offering was completed on May 24, with GameStop issuing and selling 45 million shares for gross proceeds of $933.4 million. These proceeds will go toward general corporate expenses.
“(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 B. Riley Wealth Chief Market Strategist Art Hogan. Hogan added that the company still has a lot of progress to make before its real value reflects its stock price.
The video game retailer also reported its preliminary first-quarter earnings with the expectation that revenue would fall to between $872 million and $892 million compared to $1.237 billion a year ago. That reflects a significant 29% fall from the midpoint.
5 Investors Betting Big on GME Stock in Q1
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. However, GME stock isn’t exactly popular among institutional investors. During Q1, 237 13F filers disclosed a stake in the company, down by 20 filers compared to Q4. The total number of shares owned by these filers dipped by 2.19% to 87.12 million.
Hedge funds, a subset of institutional investors, were even more bearish. 37 hedge funds reported a stake as of Q1, down from 48 hedge funds quarter-over-quarter. Total hedge fund exposure dropped by 19% to 8.73 million shares.
With that in mind, let’s take a look at GameStop’s top five shareholders:
- RC Ventures, an investment vehicle owned by CEO Ryan Cohen: 36.84 million shares. RC’s stake is accurate as of May 22.
- Vanguard: 25.35 million shares. Vanguard sold 95,242 shares during Q1.
- BlackRock (NYSE:BLK): 22.61 million shares. BlackRock acquired 74,870 shares during Q1.
- State Street (NYSE:STT): 8.28 million shares. State Street added 305,631 shares during Q1.
- Geode Capital Management: 4.32 million shares. Geode added 183,062 shares during Q1.
On the date of publication, Eddie Pan 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.
