Sharplink Gaming (NASDAQ:SBET) Shares Gap Up - Still a Buy?

Key Points

• Sharplink Gaming shares opened higher, rising from a prior close of $7.08 to $7.55 before trading at approximately $7.37 on heavy volume.
• Analysts maintain a generally positive view, with nine Buy ratings, one Hold, and one Sell; the stock has a “Moderate Buy” consensus and an average price target of $19.01, though some firms recently lowered their targets.
• The company reported a significant quarterly loss of $1.88 per share versus expectations for $0.01 in earnings, while revenue also missed estimates. Sharplink’s negative net margin and high P/E ratio highlight substantial financial and valuation risks.

Sharplink Gaming Inc. (NASDAQ:SBET - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $7.08, but opened at $7.55. Sharplink Gaming shares last traded at $7.3660, with a volume of 3,414,093 shares changing hands.

Analysts Set New Price Targets

A number of brokerages have commented on SBET. Citigroup reaffirmed a "market outperform" rating on shares of Sharplink Gaming in a report on Thursday, August 13th. Alliance Global Partners restated a "buy" rating on shares of Sharplink Gaming in a report on Monday, May 11th. Citizens Jmp lowered 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. Canaccord Genuity Group decreased their price target on shares of Sharplink Gaming from $16.00 to $8.00 and set a "buy" rating for the company in a research note on Tuesday. Finally, Weiss Ratings raised Sharplink Gaming from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday, July 6th. Nine analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Sharplink Gaming presently has an average rating of "Moderate Buy" and a consensus target price of $19.01.

Sharplink Gaming Price Performance

The stock has a market cap of $1.60 billion, a P/E ratio of 146.90 and a beta of 10.48. The firm's fifty day moving average price is $5.78 and its two-hundred day moving average price is $6.51.

Sharplink Gaming (NASDAQ:SBET - Get Free Report) last announced its earnings results on Saturday, August 8th. The company reported ($1.88) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by ($1.89). 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 net margin of 3,406.29% and a negative return on equity of 33.40%. On average, research analysts expect that Sharplink Gaming Inc. will post 0.09 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Ausdal Financial Partners Inc. lifted its holdings in Sharplink Gaming by 16.1% in the fourth quarter. Ausdal Financial Partners Inc. now owns 11,606 shares of the company's stock worth $104,000 after buying an additional 1,606 shares during the period. The Manufacturers Life Insurance Company grew its stake in Sharplink Gaming by 4.2% in the fourth quarter. The Manufacturers Life Insurance Company now owns 45,305 shares of the company's stock worth $405,000 after purchasing an additional 1,838 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in Sharplink Gaming in the third quarter worth $49,000. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in Sharplink Gaming by 23.3% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 15,600 shares of the company's stock worth $139,000 after purchasing an additional 2,946 shares in the last quarter. Finally, Arete Wealth Advisors LLC raised its holdings in Sharplink Gaming by 6.9% in the fourth quarter. Arete Wealth Advisors LLC now owns 55,249 shares of the company's stock worth $494,000 after purchasing an additional 3,585 shares in the last quarter. Hedge funds and other 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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