Traders Purchase Large Volume of Call Options on Sharplink Gaming (NASDAQ:SBET)

Key Points

• Unusual options activity: Traders bought 43,268 call options on Sharplink Gaming, about 72% above the stock’s average daily call volume.
• Stock moved higher: SBET shares rose 9.6% on Monday to $6.21, though the stock remains well below its 12-month high of $34.29.
• Mixed company signals: Analysts currently have a Moderate Buy consensus on Sharplink, but the company recently missed earnings estimates and insiders have been selling shares.

Sharplink Gaming Inc. (NASDAQ:SBET - Get Free Report) saw some unusual options trading activity on Monday. Investors bought 43,268 call options on the company. This is an increase of approximately 72% compared to the average daily volume of 25,161 call options.

Sharplink Gaming Stock Up 9.6%

Shares of SBET traded up $0.55 during midday trading on Monday, reaching $6.21. 6,032,841 shares of the stock were exchanged, compared to its average volume of 7,926,311. Sharplink Gaming has a twelve month low of $4.46 and a twelve month high of $34.29. The company has a market cap of $1.26 billion, a P/E ratio of -10.37 and a beta of 10.45. The stock's 50 day simple moving average is $5.74 and its 200 day simple moving average is $7.11.

Sharplink Gaming (NASDAQ:SBET - Get Free Report) last issued its quarterly earnings data 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). The business had revenue of $12.06 million during the quarter, compared to analyst estimates of $14.60 million. Sharplink Gaming had a negative return on equity of 38.53% and a negative net margin of 3,604.61%.During the same quarter last year, the firm earned ($1.84) EPS. As a group, analysts predict that Sharplink Gaming will post 0.11 earnings per share for the current year.

Analyst Upgrades and Downgrades

SBET has been the subject of a number of recent analyst reports. Alliance Global Partners reaffirmed a "buy" rating on shares of Sharplink Gaming in a research report on Monday, May 11th. Citigroup reissued a "market outperform" rating on shares of Sharplink Gaming in a report on Thursday, July 9th. Cantor Fitzgerald decreased their price objective on shares of Sharplink Gaming from $10.50 to $8.10 and set an "overweight" rating on the stock in a report on Wednesday, July 1st. Citizens Jmp dropped their price objective on shares of Sharplink Gaming to $30.00 and set a "market outperform" rating on the stock in a research report on Thursday, July 9th. Finally, Weiss Ratings raised shares of Sharplink Gaming from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, July 6th. Nine equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Sharplink Gaming presently has a consensus rating of "Moderate Buy" and a consensus price target of $20.23.

Insider Transactions at Sharplink Gaming

In other news, Director Obie Mckenzie sold 12,892 shares of the business'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 transaction, the director directly owned 24,998 shares in the company, valued at $185,235.18. The trade was a 34.02% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Robert M. Gutkowski sold 12,892 shares of the company'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 directly 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 SEC filing for this sale provides additional information. Insiders have sold 38,676 shares of company stock worth $286,589 in the last ninety days. Insiders own 3.60% of the company's stock.

Institutional Investors Weigh In On Sharplink Gaming

Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. purchased a new position in shares of Sharplink Gaming in the 3rd quarter worth about $46,447,000. Alyeska Investment Group L.P. purchased a new stake in Sharplink Gaming in the 3rd quarter worth approximately $42,509,000. 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 during the period. Renaissance Technologies LLC bought a new stake in shares of Sharplink Gaming in the 1st quarter worth approximately $11,691,000. Finally, Tidal Investments LLC bought a new stake in shares of Sharplink Gaming in the 3rd quarter worth approximately $30,283,000. Institutional investors own 13.75% of the company's stock.

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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