GameStop Corp. (NYSE: GME) jumped on the bandwagon of Wall Street biggies like Amazon.com, Inc. (AMZN), Alphabet, Inc. (GOOGL), Tesla (TSLA), and Apple, Inc. (AAPL), who made their stocks more accessible to mass investors through stock splits.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Per a filing with the Securities and Exchange Commission, the videogame retailer has submitted a proposal for a planned stock split in the form of a stock dividend. Following the news, shares of the meme stock jumped 16.8% in the extended trading session on Thursday.
Details of the Plan
GameStop unveiled that it will put forward the proposal to increase its share count to 1 billion from 300 million for shareholder approval at its next annual meeting. The filing stated that the increase in shares would “provide flexibility for future corporate needs.”
Notably, this will be the second stock split in the company’s history. Prior to this, the company split its stock 2-for-1 in March 2007.
The company will also ask shareholders to approve a new incentive plan, which is expected to “support future compensatory equity issuances.”
Official Comments
GameStop said, “The Company’s definitive proxy statement relating to the Annual Meeting will include additional details regarding the Charter Amendment and the 2022 Equity Plan, as well as the record date, date and location of the annual meeting.”
Wall Street’s Take
Recently, Wedbush analyst Michael Pachter reiterated a Sell rating on GameStop and a price target of $30. This indicates 81.99% downside potential from Thursday’s closing price of $166.58 per share.
The rest of the Street is bearish on the stock, with a Moderate Sell consensus rating based on one Hold and one Sell. The average GameStop price target of $65 implies 60.98% downside potential to current levels. Shares have decreased 13% over the past year.
Estimated Monthly Visits
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), offers insight into GameStop’s performance.
According to the tool, the GME website recorded a 36.87% and 30.56% decrease in global estimated visits in January and February, respectively. Also, year-to-date website growth has declined by 40.61%.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
Related News:
Cushman & Wakefield in Limelight for its Services
Tesla Doubling Down on Deals for Nickel Supplies
Mighty Micron Manages Quarterly Earnings Mastery
