Shares of GameStop (NYSE:GME) stock are up by over 15% today, bringing its one-month return to about 25% as traders on social media speculate that a short squeeze event like the one that occurred in early 2021 could happen again. According to Vanda Research, individual investors acquired $1.92 million of shares on a net basis yesterday, the highest figure since Aug. 6.
As of Nov. 15, GME stock carried a high short interest as a percentage of float of 22.81%. That’s equivalent to 60.67 million shares sold short and would take 18.1 days to fully cover. Generally, a short interest above 10% is considered high, while a short interest above 20% is very high.
On top of that, a major catalyst is on the way, as the video game retailer is set to report its third-quarter earnings on Wednesday, Dec. 6, after the market close.
Options trading for the meme stock has also swelled in recent days. Volume for GameStop’s Dec. 8 $20 call option has taken off, with most of it as a result of new trades consisting of small blocks. That’s a sign that retail traders are at play and that they expect a positive earnings report.
For the third quarter, analysts expect revenue of $1.182 billion, down by 0.35% year-over-year, and a GAAP EPS loss of nine cents.
5 Investors Betting Big on GME Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, 233 13F filers disclosed a stake in GME, a decline of 12 filers from the prior quarter. None of these filers own GME in their top 10 positions. In total, the filers own 85.28 million shares, up by 1.95% from 83.64 million shares. Hedge funds took a different stance, as they decreased their aggregate ownership by 10.51% to 8.15 million shares.
With that in mind, let’s take a look at GameStop’s top shareholders:
- RC Ventures, an investment vehicle owned by CEO Ryan Cohen, owns 36.84 million shares. RC’s stake is accurate as of Q2.
- Vanguard: 25.28 million shares. Vanguard acquired 345,488 shares during Q3.
- BlackRock (NYSE:BLK): 22.66 million shares. BlackRock acquired 979,211 shares during Q3.
- State Street (NYSE:STT): 7.71 million shares. State Street acquired 264,580 shares during Q3.
- Geode Capital Management: 3.99 million shares. Geode acquired 221,707 shares during Q3.
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.
