Shares of GameStop (NYSE:GME) stock are up by more than 35% this year on the heels of increased profitability and efficiency. During the fourth quarter of 2022, the video game retailer reported net income of $48.2 million, compared to a net loss of $147.5 million a year ago. Sales of $2.226 billion showed a slight decline compared to sales of $2.254 billion year-over-year.
“In addition, the Company ended the year with a healthy inventory position, negligible debt and significant cash on hand,” said CEO Matt Furlong in a letter to shareholders. “This was the upshot of us doubling down on efficiency. We now have a foundation for pursuing consistent profitability, pragmatic growth and long-term value creation.”
Meanwhile, GameStop will hold its annual meeting of stockholders on June 15. Shareholders of record as of April 21 will be eligible to vote on five proposals, such as electing six directors. One of these directors is Ryan Cohen, who is currently the chairman of the company. Cohen is also a top five shareholder of GME, with ownership of 9.1 million shares as of Q1 2022.
GameStop is currently laser-focused on cutting costs, improving terms with its suppliers, and penetrating higher-margin markets, like collectibles and toys. The company ended the fourth quarter with a cash, cash equivalents and marketable securities balance of $1.391 billion.
5 Investors Betting Big on GME Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q1, 241 13F filers disclosed a stake in GME stock, a decline of three filers from the prior quarter. In total, these filers own 85.32 million shares of GME, compared to 85.17 million shares as of Q1. Hedge funds seemed to favor GME, however, as they increased their stake by 22.56% during the quarter.
The institutional put/call ratio as of Q1 sits at 0.71, down from 1.18. That’s equivalent to 13.46 million puts and 19.03 million calls, implying a bullish options stance. With that in mind, let’s take a look at GameStop’s largest shareholders:
- Vanguard Group: 36.4 million shares. Vanguard acquired 400,000 shares during Q1.
- BlackRock (NYSE:BLK): 22.12 million shares. BlackRock acquired 145,855 shares during Q1.
- RC Ventures: 9.1 million shares. RC’s stake is accurate as of Q1 of 2022.
- State Street (NYSE:STT): 7.56 million shares. State Street acquired 311,487 shares during Q1.
- Geode Capital Management: 3.61 million shares. Geode acquired 121,916 shares during Q1.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.