Sharplink Gaming (NASDAQ:SBET) Posts Quarterly Earnings Results

Key Points

• Sharplink Gaming missed quarterly expectations: It reported an EPS loss of $1.88 versus the $0.02 consensus estimate, while revenue of $11.53 million came in below expectations of $12.26 million. The company also posted a negative 3,604.61% net margin.
• Analysts remain broadly positive but lowered targets: Nine analysts rate the stock Buy, one rates it Hold, and one rates it Sell, resulting in a “Moderate Buy” consensus and an average price target of $19.90. TD Cowen retained its Buy rating but cut its target to $13 from $16.
• Shares remain highly volatile and insiders have been selling: SBET traded at $6.43, compared with a 52-week range of $4.46 to $28.26, and has a beta of 10.48. Directors sold shares in May, with insiders selling 38,676 shares worth about $286,589 over the past 90 days.

Sharplink Gaming (NASDAQ:SBET - Get Free Report) announced its quarterly earnings data on Friday. The company reported ($1.88) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.02 by ($1.90), FiscalAI reports. The company had revenue of $11.53 million for the quarter, compared to the consensus estimate of $12.26 million. Sharplink Gaming had a negative return on equity of 38.53% and a negative net margin of 3,604.61%.

Sharplink Gaming Price Performance

SBET stock traded up $0.14 during midday trading on Friday, reaching $6.43. 4,926,644 shares of the company were exchanged, compared to its average volume of 8,111,213. Sharplink Gaming has a one year low of $4.46 and a one year high of $28.26. The firm has a market capitalization of $1.30 billion, a price-to-earnings ratio of -10.72 and a beta of 10.48. The business has a 50-day moving average price of $5.65 and a two-hundred day moving average price of $6.73.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. TD Cowen restated a "buy" rating and set a $13.00 target price (down from $16.00) on shares of Sharplink Gaming in a report on Friday, July 31st. Wall Street Zen raised shares of Sharplink Gaming from a "sell" rating to a "hold" rating in a research report on Sunday, July 12th. Weiss Ratings raised shares of Sharplink Gaming from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, July 6th. Citizens Jmp cut their target price on shares of Sharplink Gaming to $30.00 and set a "market outperform" rating for the company in a research note on Thursday, July 9th. Finally, Citigroup reissued a "market outperform" rating on shares of Sharplink Gaming in a research report on Thursday, July 9th. Nine investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $19.90.

Insider Activity

In other news, Director Obie Mckenzie 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 transaction 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 position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Robert M. Gutkowski sold 12,892 shares of Sharplink Gaming stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $7.41, for a total transaction of $95,529.72. Following the sale, the director directly owned 24,998 shares of the company's stock, valued at $185,235.18. The trade was a 34.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 38,676 shares of company stock valued at $286,589 over the last ninety days. 3.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sharplink Gaming

A number of institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. bought a new stake in Sharplink Gaming in the 3rd quarter valued at $46,447,000. Alyeska Investment Group L.P. bought a new position in Sharplink Gaming during the 3rd quarter worth $42,509,000. Voloridge Investment Management LLC increased its position in Sharplink Gaming by 344.4% during 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 during the period. Tidal Investments LLC bought a new position in Sharplink Gaming during the 3rd quarter worth $30,283,000. Finally, Weiss Asset Management LP lifted its holdings in shares of Sharplink Gaming by 220.0% during the fourth quarter. Weiss Asset Management LP now owns 2,554,301 shares of the company's stock worth $22,835,000 after buying an additional 1,755,973 shares in the last quarter. Institutional investors 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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