Sharplink Gaming (NASDAQ:SBET) Shares Up 7.7% - Should You Buy?

Key Points

• SharpLink Gaming shares rose 7.7% to about $8.48, with a market capitalization of $1.84 billion and unusually high volatility reflected in its 10.60 beta.
• Analysts remain broadly positive: nine rate the stock Buy and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $17, although targets range widely from $8 to $30.
• The company’s latest quarter showed significant weakness, including an EPS loss of $1.88 versus expectations for a $0.01 profit, revenue below estimates, and a negative net margin of 3,406.29%. Director Joseph Lubin also sold about $47.6 million worth of shares.

Sharplink Gaming Inc. (NASDAQ:SBET - Get Free Report)'s stock price was up 7.7% during mid-day trading on Wednesday. The stock traded as high as $8.46 and last traded at $8.4750. 5,617,289 shares were traded during mid-day trading, a decline of 30% from the average session volume of 8,075,837 shares. The stock had previously closed at $7.87.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on SBET shares. Canaccord Genuity Group lowered their price objective on Sharplink Gaming from $16.00 to $8.00 and set a "buy" rating on the stock in a report on Tuesday, August 18th. Citigroup reiterated a "market outperform" rating on shares of Sharplink Gaming in a research note on Thursday, August 13th. B. Riley Financial restated a "buy" rating and issued a $14.00 price objective (up from $12.00) on shares of Sharplink Gaming in a research note on Tuesday, September 22nd. Citizens Jmp reduced their price target on shares of Sharplink Gaming to $30.00 and set a "market outperform" rating for the company in a research report on Thursday, July 9th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Sharplink Gaming in a research note on Friday, October 2nd. Nine analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $17.00.

Sharplink Gaming Price Performance

The company has a market cap of $1.84 billion, a price-to-earnings ratio of 169.70 and a beta of 10.60. The firm has a fifty day simple moving average of $8.46 and a 200 day simple moving average of $7.00.

Sharplink Gaming (NASDAQ:SBET - Get Free Report) last issued its earnings results on Saturday, August 8th. The company reported ($1.88) earnings per share for the quarter, missing the consensus estimate of $0.01 by ($1.89). Sharplink Gaming had a negative net margin of 3,406.29% and a negative return on equity of 33.40%. The business had revenue of $11.53 million for the quarter, compared to analyst estimates of $12.26 million. Analysts expect that Sharplink Gaming Inc. will post 0.12 earnings per share for the current year.

Insider Activity at Sharplink Gaming

In related news, Director Joseph Lubin sold 5,676,952 shares of the stock in a transaction on Thursday, October 8th. The stock was sold at an average price of $8.39, for a total value of $47,629,627.28. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 3.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. GAMMA Investing LLC increased its position in shares of Sharplink Gaming by 355.7% during the third quarter. GAMMA Investing LLC now owns 6,116 shares of the company's stock valued at $57,000 after buying an additional 4,774 shares during the period. Independent Financial Group LLC bought a new stake in Sharplink Gaming in the 1st quarter worth $65,000. Koshinski Asset Management Inc. purchased a new stake in Sharplink Gaming in the first quarter worth $71,000. Galvin Gaustad & Stein LLC purchased a new position in shares of Sharplink Gaming during the third quarter valued at about $102,000. Finally, SummitTX Capital L.P. purchased a new position in shares of Sharplink Gaming in the 1st quarter valued at approximately $73,000. Institutional investors own 13.75% of the company's stock.

About Sharplink Gaming

SharpLink Gaming Ltd. is a technology and performance-marketing company serving the online sports betting and iGaming industries. The company provides customer-acquisition solutions designed to connect sports fans and gaming audiences with licensed betting and gaming operators through digital marketing, affiliate partnerships and related technology.

SharpLink's activities have historically focused on the United States and other regulated online gaming markets, where it has supported operators with player acquisition, engagement and retention initiatives.

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