Sharplink Gaming (NASDAQ:SBET) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Sharplink Gaming from a “hold” to a “sell,” even though the broader analyst consensus still sits at a “Moderate Buy” with an average target price of $22.11.
• The company’s latest earnings were weak: it reported EPS of -$3.25, missing expectations, and revenue of $12.06 million also fell short of estimates. Shares were trading near $5.29, close to their 52-week low of $5.06.
• There has also been notable insider selling, with directors Leslie Bernhard and Robert M. Gutkowski each selling 12,892 shares. In the past three months, insiders sold 38,676 shares total, while institutional investors own 13.75% of the stock.

Sharplink Gaming (NASDAQ:SBET - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

Other equities research analysts also recently issued reports about the stock. Canaccord Genuity Group restated a "buy" rating and issued a $16.00 target price on shares of Sharplink Gaming in a report on Tuesday, March 17th. Cantor Fitzgerald raised shares of Sharplink Gaming to a "strong-buy" rating in a research note on Thursday, April 9th. Alliance Global Partners reiterated a "buy" rating on shares of Sharplink Gaming in a report on Monday, May 11th. Citizens Jmp lowered their price objective on shares of Sharplink Gaming from $50.00 to $40.00 and set a "market outperform" rating for the company in a research note on Wednesday, March 11th. Finally, B. Riley Financial dropped their price objective on Sharplink Gaming from $19.00 to $10.00 and set a "buy" rating for the company in a report on Monday, February 23rd. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $22.11.

Sharplink Gaming Stock Performance

NASDAQ SBET opened at $5.29 on Friday. The business's 50-day moving average price is $6.54 and its 200 day moving average price is $7.79. Sharplink Gaming has a twelve month low of $5.06 and a twelve month high of $40.46. The company has a market capitalization of $1.04 billion, a PE ratio of -8.82 and a beta of 10.39.

Sharplink Gaming (NASDAQ:SBET - Get Free Report) last posted its quarterly earnings results on Friday, May 8th. The company reported ($3.25) EPS for the quarter, missing the consensus estimate of ($0.62) by ($2.63). Sharplink Gaming had a negative net margin of 3,604.61% and a negative return on equity of 38.53%. The business had revenue of $12.06 million during the quarter, compared to analysts' expectations of $14.60 million. During the same quarter last year, the firm earned ($1.84) EPS. Equities analysts predict that Sharplink Gaming will post 0.15 EPS for the current year.

Insider Activity at Sharplink Gaming

In other news, Director Leslie Bernhard sold 12,892 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $7.41, for a total value of $95,529.72. Following the completion of the sale, the director owned 24,998 shares in the company, valued at approximately $185,235.18. This trade represents a 34.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Robert M. Gutkowski sold 12,892 shares of the firm's stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $7.41, for a total value of $95,529.72. Following the sale, the director owned 24,998 shares in the company, valued at approximately $185,235.18. The trade was a 34.02% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 38,676 shares of company stock worth $286,589. Corporate insiders own 3.60% of the company's stock.

Institutional Trading of Sharplink Gaming

Several large investors have recently bought and sold shares of the company. Alyeska Investment Group L.P. lifted its position in shares of Sharplink Gaming by 70.8% during the fourth quarter. Alyeska Investment Group L.P. now owns 4,268,673 shares of the company's stock worth $38,162,000 after purchasing an additional 1,769,589 shares in the last quarter. Weiss Asset Management LP grew its holdings in Sharplink Gaming by 19.1% during 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. increased its stake in Sharplink Gaming by 165.9% during the 4th quarter. Invesco Ltd. now owns 2,734,052 shares of the company's stock worth $24,442,000 after buying an additional 1,706,011 shares during the period. Vanguard Group Inc. purchased a new stake in Sharplink Gaming during the 3rd quarter worth $46,447,000. Finally, Voloridge Investment Management LLC lifted its holdings in 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 buying an additional 2,101,252 shares in the last quarter. Institutional investors and hedge funds own 13.75% of the company's stock.

About Sharplink Gaming

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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