Sharplink Gaming (NASDAQ:SBET) Shares Gap Down - Should You Sell?

Key Points

• Sharplink Gaming's stock experienced a significant gap down from $17.33 to $16.22 prior to trading, closing at $16.60 with high volume.
• Alliance Global Partners initiated coverage on Sharplink Gaming with a buy rating and a price target of $48.00, contributing to the stock's consensus rating of "Buy."
• Insiders sold over 55,000 shares worth more than $1 million in the last three months, indicating potential concerns among company leadership.

Shares of Sharplink Gaming Inc. (NASDAQ:SBET - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $17.33, but opened at $16.22. Sharplink Gaming shares last traded at $16.60, with a volume of 7,467,897 shares trading hands.

Analyst Upgrades and Downgrades

Separately, Alliance Global Partners started coverage on shares of Sharplink Gaming in a research note on Tuesday, August 26th. They set a "buy" rating and a $48.00 price target for the company. One analyst has rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $48.00.

Sharplink Gaming Trading Up 2.1%

The company's fifty day simple moving average is $20.59 and its 200 day simple moving average is $14.77.

Sharplink Gaming (NASDAQ:SBET - Get Free Report) last released its quarterly earnings data on Thursday, August 14th. The company reported ($0.64) EPS for the quarter. Sharplink Gaming had a negative net margin of 3,377.39% and a negative return on equity of 15.93%. The business had revenue of $0.70 million for the quarter.

Insider Transactions at Sharplink Gaming

In other news, Director Leslie Bernhard sold 18,334 shares of the stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $19.17, for a total value of $351,462.78. Following the sale, the director directly owned 24,998 shares of the company's stock, valued at approximately $479,211.66. This represents a 42.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Robert M. Gutkowski sold 18,334 shares of the stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $19.17, for a total transaction of $351,462.78. Following the completion of the sale, the director directly owned 24,998 shares in the company, valued at approximately $479,211.66. The trade was a 42.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 55,002 shares of company stock valued at $1,054,388. 3.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Sharplink Gaming

A number of institutional investors and hedge funds have recently modified their holdings of the company. Marshall Wace LLP purchased a new stake in shares of Sharplink Gaming in the second quarter worth about $26,852,000. Anatole Investment Management Ltd bought a new position in shares of Sharplink Gaming in the second quarter worth approximately $6,332,000. JPMorgan Chase & Co. bought a new position in shares of Sharplink Gaming in the second quarter worth approximately $3,229,000. Thames Capital Management LLC bought a new position in shares of Sharplink Gaming in the second quarter worth approximately $1,566,000. Finally, XTX Topco Ltd increased its position in shares of Sharplink Gaming by 509.9% in the second quarter. XTX Topco Ltd now owns 110,270 shares of the company's stock worth $1,095,000 after purchasing an additional 92,189 shares during the last quarter. 13.75% of the stock is owned by hedge funds and other institutional investors.

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.