GameStop Stock Continues Destroying Short Positions
Monday morning saw another jump in GameStop's stock price. Do the day traders and “Robinhooders” know something the institutional giants don’t?
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GameStop Corp. (NYSE: GME | GME Price Prediction) has seen a meteoric rise over the past few weeks and short sellers have been absolutely devastated. This rally doesn’t seem to have any fundamental move behind it other than day traders and “Robinhooders” pouring into the stock, pushing it higher. Monday morning saw another jump in the stock price, so maybe these small guys know something the institutional giants don’t.
Note that shares of GameStop were halted just after the opening bell due to volatility.
In the premarket on Monday, the stock hit as high as $136.63, which compares to the most recent closing price of $65.01.
One of the biggest bears on this stock was Citron Research. However, the firm has since stopped commented on GameStop, citing the actions of “an angry mob,” which is a direct reference to the day-traders and so-called Robinhooders.
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Excluding Monday’s move, GameStop stock had outperformed the broad markets with a rise of about 245% year to date. In the past six months, the stock was up closer to 1,482%.
Here’s what analysts have said most recently on the stock:
- Telsey Advisory Group downgraded it to Underperform from Outperform on January 25, 2021.
- Standpoint Research downgraded it to a Hold rating from Buy on January 13, 2021.
- Benchmark reiterated a Sell rating with a $5 price target on December 9, 2020.
- Wedbush reiterated a Neutral rating with a $16 price target on December 4, 2020.
GameStop stock was last seen up more than 40% at $91.42, in a 52-week range of $2.57 to $101.01. The consensus price target is $11.01.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
