Sharplink Gaming (NASDAQ:SBET) Shares Gap Down - What's Next?

Key Points

• SharpLink Gaming shares gapped lower, opening at $8.60 versus a prior close of $8.98 and later trading around $8.47 on volume of roughly 919,000 shares.
• Analyst sentiment remains broadly positive, with nine Buy ratings, one Hold, and one Sell; however, Canaccord and TD Cowen recently cut their price targets. The stock has a consensus “Moderate Buy” rating and an average target of $15.39.
• The company’s latest quarter was weak, reporting an $1.88-per-share loss versus expectations for $0.01 EPS and revenue of $11.53 million versus a $12.26 million estimate. SharpLink also posted negative return on equity and an exceptionally negative net margin.

Sharplink Gaming Inc. (NASDAQ:SBET - Get Free Report) shares gapped down before the market opened on Friday . The stock had previously closed at $8.98, but opened at $8.60. Sharplink Gaming shares last traded at $8.4720, with a volume of 919,115 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Wall Street Zen upgraded shares of Sharplink Gaming from a "strong sell" rating to a "sell" rating in a research note on Sunday, August 30th. Canaccord Genuity Group reduced their target price on Sharplink Gaming from $16.00 to $8.00 and set a "buy" rating on the stock in a report on Tuesday, August 18th. TD Cowen reiterated a "buy" rating and issued a $13.00 target price (down from $16.00) on shares of Sharplink Gaming in a research report on Friday, July 31st. Alliance Global Partners reaffirmed a "buy" rating on shares of Sharplink Gaming in a research note on Monday, May 11th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Sharplink Gaming in a report on Thursday, August 13th. Nine investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Sharplink Gaming presently has a consensus rating of "Moderate Buy" and an average target price of $15.39.

Sharplink Gaming Stock Performance

The stock has a market cap of $1.85 billion, a PE ratio of 170.20 and a beta of 10.56. The stock has a fifty day moving average price of $6.45 and a 200 day moving average price of $6.60.

Sharplink Gaming (NASDAQ:SBET - Get Free Report) last issued its quarterly earnings results on Saturday, August 8th. The company reported ($1.88) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.01 by ($1.89). The company had revenue of $11.53 million during the quarter, compared to the consensus estimate of $12.26 million. Sharplink Gaming had a negative return on equity of 33.40% and a negative net margin of 3,406.29%. As a group, equities analysts anticipate that Sharplink Gaming Inc. will post 0.09 earnings per share for the current fiscal year.

Institutional Trading of Sharplink Gaming

Institutional investors and hedge funds have recently modified their holdings of the stock. Alyeska Investment Group L.P. raised its holdings in shares of Sharplink Gaming by 70.8% in the fourth quarter. Alyeska Investment Group L.P. now owns 4,268,673 shares of the company's stock valued at $38,162,000 after acquiring an additional 1,769,589 shares in the last quarter. Weiss Asset Management LP raised its holdings in shares of Sharplink Gaming by 19.1% in the 1st quarter. Weiss Asset Management LP now owns 3,042,548 shares of the company's stock valued at $19,624,000 after purchasing an additional 488,247 shares in the last quarter. Invesco Ltd. raised its holdings in shares of Sharplink Gaming by 165.9% in the 4th quarter. Invesco Ltd. now owns 2,734,052 shares of the company's stock valued at $24,442,000 after purchasing an additional 1,706,011 shares in the last quarter. Vanguard Group Inc. purchased a new stake in shares of Sharplink Gaming in the 3rd quarter worth approximately $46,447,000. Finally, Voloridge Investment Management LLC lifted its position in shares of Sharplink Gaming by 344.4% in the 4th quarter. Voloridge Investment Management LLC now owns 2,711,424 shares of the company's stock worth $24,240,000 after purchasing an additional 2,101,252 shares during the period. Institutional investors own 13.75% of the company's stock.

Sharplink Gaming Company Profile

SharpLink Gaming, Inc operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. The company operates through four segments: Affiliate Marketing Services United States, Affiliate Marketing Services International, Sports Gaming Client Services, and SportsHub Games Network. It operates a performance marketing platform, which owns and operates state-specific web domains to attract, acquire, and drive local sports betting and casino traffic directly to the company's sportsbook and casino partners, which are licensed to operate in each respective state; and offers sports betting data to sports media publishers.

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