Sharplink Gaming (NASDAQ:SBET) Stock Price Down 7.8% - Time to Sell?

Key Points

• Sharplink Gaming shares fell 7.8% to about $5.91, with trading volume down 82% from the average session. The stock has a $1.21 billion market capitalization and an exceptionally high beta of 10.45, indicating significant volatility.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating from 11 analysts and an average price target of $20.23, despite recent target reductions and one Sell rating.
• The company reported weak quarterly results, including an adjusted loss of $3.25 per share versus an expected loss of $0.62 and revenue below estimates. Insiders have also sold 38,676 shares worth approximately $286,589 over the past 90 days.

Sharplink Gaming Inc. (NASDAQ:SBET - Get Free Report) shares traded down 7.8% during trading on Friday . The stock traded as low as $6.05 and last traded at $5.9120. Approximately 1,402,141 shares traded hands during trading, a decline of 82% from the average session volume of 7,929,535 shares. The stock had previously closed at $6.41.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on SBET. HC Wainwright started coverage on shares of Sharplink Gaming in a research report on Tuesday, April 7th. They issued a "buy" rating and a $10.00 price objective for the company. Citizens Jmp decreased their price objective on Sharplink Gaming to $30.00 and set a "market outperform" rating on the stock in a research report on Thursday, July 9th. Wall Street Zen raised Sharplink Gaming from a "sell" rating to a "hold" rating in a research note on Sunday, July 12th. Citigroup restated a "market outperform" rating on shares of Sharplink Gaming in a research report on Thursday, July 9th. Finally, TD Cowen reaffirmed a "buy" rating on shares of Sharplink Gaming in a research note on Friday. Nine 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. Based on data from MarketBeat, Sharplink Gaming presently has a consensus rating of "Moderate Buy" and an average target price of $20.23.

Sharplink Gaming Price Performance

The business has a 50 day moving average of $5.63 and a 200 day moving average of $6.89. The firm has a market capitalization of $1.21 billion, a price-to-earnings ratio of -9.99 and a beta of 10.45.

Sharplink Gaming (NASDAQ:SBET - Get Free Report) last released its earnings results on Friday, May 8th. The company reported ($3.25) earnings per share 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 company had revenue of $12.06 million during the quarter, compared to analyst estimates of $14.60 million. During the same period in the previous year, the company posted ($1.84) EPS. As a group, equities analysts predict that Sharplink Gaming Inc. will post 0.11 EPS for the current year.

Insider Activity at Sharplink Gaming

In related news, Director Leslie Bernhard sold 12,892 shares of the business's stock in a transaction that occurred on 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 transaction, 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. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Obie Mckenzie sold 12,892 shares of the company's stock in a transaction that occurred on 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 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 worth $286,589 in the last ninety days. Company insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On Sharplink Gaming

A number of hedge funds and other institutional investors have recently made changes to their positions in SBET. JPMorgan Chase & Co. bought a new stake in shares of Sharplink Gaming in the 2nd quarter valued at $3,229,000. Qube Research & Technologies Ltd bought a new position in Sharplink Gaming during the second quarter worth about $151,000. NewEdge Advisors LLC bought a new position in Sharplink Gaming during the second quarter worth about $101,000. HUB Investment Partners LLC acquired a new position in Sharplink Gaming in the second quarter valued at about $298,000. Finally, Anatole Investment Management Ltd acquired a new position in Sharplink Gaming in the second quarter valued at about $6,332,000. 13.75% of the stock is owned by 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. 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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