Two quarters into the year, GameStop (NYSE:GME) stock is still disappointing investors. The original meme stock has a loyal following, but it just can’t seem to catch fire lately. For the past six months, shares have failed to garner any serious momentum and have only risen superficially. While GME stock remains in the green year-to-date (YTD), its current trajectory suggests that it won’t stay there for long. Many investors are probably coming to terms with the fact that the iconic GameStop squeeze of 2021 likely won’t repeat. At its core, GameStop is a retailer with an outdated business model.
InvestorPlace contributor Jeremy Flint recently urged investors to sell shares before GME stock falls even further:
“The company hasn’t turned a profit since 2018. Although Executive Chair Ryan Cohen came to the company with some admittedly admirable plans to turn the firm around, economic conditions simply won’t allow for a reversal in the short term. As a consumer discretionary stock, GameStop’s core products are the first cuts when households clamp down on spending. And, even for hardcore gaming adherents, there are too many alternative options.”
Flint isn’t the only one who sees GME as an unstable meme stock no one should touch. InvestorPlace’s Louis Navellier has made a similar case against GameStop. GME stock gets a “D” rating in Navellier’s Portfolio Grader, as does fellow unstable meme stock AMC Entertainment (NYSE:AMC).
As it turns out, institutional investors aren’t too optimistic about GameStop’s prospects, either.
Who Is Still Betting on GME Stock?
Given how poorly the company has performed, it’s unsurprising that hedge funds are cutting back on their GME stock positions or ditching them entirely. Data from WhaleWisdom suggests that institutional sentiment toward GameStop is declining. Both the number of funds holding GME stock and the number of 13F shares are down for the second quarter, as is percentage ownership. While new positions are up 13% compared to Q1, the number of increased positions has fallen by 15%. Meanwhile, closed positions have risen more than 40% since Q1.
With that in mind, let’s take a look at the top investors still maintaining positions in GME stock:
- RC Ventures: 36.84 million shares. Ryan Cohen’s firm is still the company’s top shareholder, adding 443,842 shares in Q2.
- Vanguard: 24.93 million shares. Vanguard sold 130,124 shares during Q2.
- BlackRock (NYSE:BLK): 21.68 million shares. BlackRock offloaded 441,089 shares of GME stock during Q2.
- State Street Corporation (NYSE:STT): 7.45 million shares. State Street sold 115,148 shares during Q2.
- Geode Capital Management: 3.77 million shares. Geode added 157,131 shares during Q2.
On the date of publication, Samuel O’Brient 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.
