Short Interest in GCL Global Holdings Ltd. (NASDAQ:GCL) Rises By 278.4%

Key Points

• Short interest surged 278.4% to 314,353 shares as of August 31, representing 0.5% of GCL Global’s outstanding stock.
• GCL Global approved a $10 million share repurchase program, allowing it to buy back up to 11.6% of its outstanding shares.
• The stock traded near $0.61, while the company reported a quarterly loss of $0.08 per share and analysts maintained a consensus “Sell” rating.

GCL Global Holdings Ltd. (NASDAQ:GCL - Get Free Report) was the recipient of a large growth in short interest in August. As of August 31st, there was short interest totaling 314,353 shares, a growth of 278.4% from the August 15th total of 83,075 shares. Currently, 0.5% of the company's stock are sold short. Based on an average trading volume of 908,588 shares, the short-interest ratio is presently 0.3 days.

Hedge Funds Weigh In On GCL Global

Several institutional investors have recently modified their holdings of GCL. Geode Capital Management LLC purchased a new stake in shares of GCL Global during the second quarter valued at approximately $54,000. Two Sigma Investments LP purchased a new position in GCL Global in the third quarter worth $42,000. Citadel Advisors LLC grew its stake in GCL Global by 54.4% in the 3rd quarter. Citadel Advisors LLC now owns 55,939 shares of the company's stock valued at $139,000 after purchasing an additional 19,699 shares during the period. Finally, XTX Topco Ltd grew its stake in GCL Global by 361.2% in the 4th quarter. XTX Topco Ltd now owns 48,682 shares of the company's stock valued at $52,000 after purchasing an additional 38,127 shares during the period. 36.55% of the stock is owned by institutional investors.

GCL Global Stock Performance

NASDAQ GCL opened at $0.61 on Friday. GCL Global has a 52-week low of $0.38 and a 52-week high of $3.20. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.13 and a current ratio of 1.52. The firm has a 50-day moving average of $0.52 and a 200-day moving average of $0.53. The stock has a market cap of $77.91 million, a PE ratio of -30.43 and a beta of 0.39.

GCL Global (NASDAQ:GCL - Get Free Report) last posted its earnings results on Friday, July 31st. The company reported ($0.08) earnings per share (EPS) for the quarter. The firm had revenue of $70.10 million for the quarter.

GCL Global declared that its board has approved a stock buyback program on Friday, August 28th that permits the company to buyback $10.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 11.6% of its shares through open market purchases. Shares buyback programs are often an indication that the company's leadership believes its shares are undervalued.

Analysts Set New Price Targets

Separately, Weiss Ratings downgraded shares of GCL Global from a "sell (d)" rating to a "sell (d-)" rating in a research note on Thursday. One investment analyst has rated the stock with a Sell rating, According to MarketBeat, the company has a consensus rating of "Sell".

GCL Global Company Profile

GCL Global Enterprises, Inc NASDAQ: GCL is a U.S.-based provider of residential and commercial restoration, remodeling and reconstruction services. The company specializes in water damage remediation, mold mitigation, fire and smoke damage restoration, storm and disaster recovery, and general contracting work. Through a combination of proprietary processes, licensed technicians and third-party partnerships, GCL Global delivers end-to-end project management from initial assessment through final rebuild.

In addition to its core restoration business, GCL Global offers home improvement and renovation services, including flooring, painting, cabinetry and other remodeling projects.

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