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GameStop shares fell on Tuesday in the middle of the morning.
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GameStop
the stock fell again shortly after the market opened on Tuesday. While some missing sellers have appeared in recent weeks to cover bearish bets, a missing sales expert says he still sees a lot of squeezing potential.
Shares fell 19% to $ 178.12 around 10:30 p.m. Such levels are still many times higher than the one-year low of $ 2.57.
Ihor Dusaniwsky, general manager of the analysis firm S3 Partners, said Barron’s On Monday, his company estimated that approximately 8.98 million GameStop shares (ticker: GME) were recently sold short, about 16% of the shares available for trading.
Dusaniwsky said in the past month that his company has seen about 7.5 million shorts covered, which means that rising investors have bought shares to cover their bets. Most came in the last week, when 4.6 million shares were covered.
“GME shorts are undergoing a short cut and the stock continues to be among the best stocks in our potential short-cut metrics, which means that squeezing is likely to continue if its stock price remains at or above these levels,” said Dusaniwsky. added.
The company’s stock rose sharply last week, following an announcement by the company that Chewy co-founder Ryan Cohen was chairman of a management committee that aims to turn the retailer into a technology business. Cohen joined the board of directors with two associates in January, beginning GameStop’s parabolic rise.
GameStop said it will report fourth-quarter fiscal results on March 23. Analysts expect adjusted earnings of $ 1.35 per share, up from $ 1.27 per share in the previous fourth quarter, according to FactSet. Of course, analysts are much better at GameStop than retail investors who post on Reddit’s WallStreetBets forum. The highest price targeted by FactSet is 33 USD, while the average target is 14.64 USD.
While the short-term results could cool the GameStop rally, those excited about the action look far into the future. If the company offers an optimistic color to its e-commerce efforts and the impact of the new game consoles, it could make a more pleasant quarterly wish.
Write to Connor Smith to [email protected]