Stock split gamestop?
GameStop stock (symbol: GME) underwent a total of 2 stock splits. The most recent stock split occured on July 22nd, 2022. One GME share bought prior to March 19th, 2007 would equal to 8 GME shares today.
(NYSE: GME) (“GameStop” or the “Company”) today announced that its Board of Directors has approved and declared a four-for-one split of the Company's Class A common stock in the form of a stock dividend.
Gill uploaded one final spreadsheet to Reddit in April 2021 valuing his GameStop stock at $34,473,248.01. At its peak, Reuters valued Gill's GameStop stock at $48 million. Those who have followed the saga are split on whether Gill ever sold any of the stock or if he's still holding onto most of it.
Examples of a stock split
In 2022, Alphabet — the parent company of Google — had a 20-for-1 stock split. This is one of the biggest splits in recent history. Amazon also had a 20-for-1 stock split in 2022 and GameStop had a 4-for-1 stock split. Tesla had a 3-for-1 stock split last year as well.
What Does a 4-for-1 Stock Split Mean? Just as a 2:1 stock split cuts a company's shares in half, a 4-for-1 stock split divides each share into quarters. In this case, the post-split company will have four times as many outstanding shares, each worth a quarter of the original, as will the company's investors.
GameStop first announced plans to split its stock in March of this year, and shareholders approved the move at the company's annual meeting in June. Before today's stock split, GameStop's share price had fallen 75% year-to-date and was trading at $158.75 per share.
The 1-for-100 reverse stock split will automatically combine and convert one hundred current shares of the Company's Common Stock into one issued and outstanding share of Common Stock.
Ryan Cohen's RC Ventures remains the largest shareholder of the company. Other significant shareholders of GME stock include BlackRock (BLK) and Vanguard.
GameStop (GME) Ownership Overview
The ownership structure of GameStop (GME) stock is a mix of institutional, retail and individual investors. Approximately 27.82% of the company's stock is owned by Institutional Investors, 18.07% is owned by Insiders and 54.12% is owned by Public Companies and Individual Investors.
Splits are often a bullish sign since valuations get so high that the stock may be out of reach for smaller investors trying to stay diversified. Investors who own a stock that splits may not make a lot of money immediately, but they shouldn't sell the stock since the split is likely a positive sign.
What stocks will split in 2024?
When do Walmart shares split? WMT shares will split 3-for-1 after the market closes on Friday, February 23, 2024, for those who are shareholders of record at the close of business on Thursday, February 22, 2024. WMT shares will begin trading at their split-adjusted price on Monday, February 26, 2024.
If this company pays stock dividends, the dividend amount is also reduced due to the split. So, technically, there's no real advantage of buying shares either before or after the split.
The value of the company doesn't increase when a split occurs, therefore the value of your stocks, your shares, doesn't change, either. Buying and selling stocks is now easier than ever, and for many investors, these stock splits might be an entry point for companies they have long admired.
The most common split ratios are 2-for-1 or 3-for-1, which means every single share before the split will turn into multiple shares after the split. A company elects to perform a stock split to intentionally lower the price of a single share, making the company's stock more affordable without losing value.
One famous stock split took place in 2014, when Apple executed a 7-for-1 split so that more small investors would be able to purchase its shares. This meant that an investor who owned 100 shares of Apple stock before the split owned 700 shares afterwards.
At its height, on January 28, the short squeeze caused the retailer's stock price to reach a pre-market value of over US$500 per share ($125 split-adjusted), nearly 30 times the $17.25 valuation at the beginning of the month.
GameStop's Highest Stock Price Was $483
The height of GameStop's stock price came on January 28, 2021. In the middle of the day on that Wednesday, the stock was momentarily worth as much as $483 per share (via New York Times), which is the intraday high for GameStop.
Disadvantages of a Stock Split
A company cannot rely on a stock split to increase its value or market cap. A stock split divides the existing shares, thus keeping the market cap the same as before. Not to forget, a company must invest some amount to conduct a stock split.
Apple (AAPL) has split five times. The first split happened in June of 1987. It was a two-for-one split, which means that each shareholder who owned one share of AAPL pre-split subsequently owned two shares. So, a 1,000 share position before the split turned into a 2,000 share position after the split.
Cohen, the co-founder of Chewy , bought shares in GameStop in 2020 and joined the board in 2021 as GameStop became one of the key stocks in the WallStreetBets meme trading phenomenon. Cohen's e-commerce experience fueled hopes that he could help modernize the brick-and-mortar video game retailer.
Does Vanguard own GameStop?
Upon digging deeper into institutional ownership, Vanguard stands out as the top shareholder of GameStop stock, holding a stake of approximately 8.03%. Following closely is Vanguard Index Funds, with a notable ownership stake of 7.58% in the company.
GameStop's ownership is divided among retail investors (59.3%), institutions (28.2%), and insiders (12.3%). CEO Ryan Cohen owns the lion's share of the insider shares.
Basically, a group of hedge fund managers were looking to short GameStop, betting on the company to fail. Instead, these day traders pump up the value of the stock, causing Wall Street to take a massive loss.
Short interest in GameStop has remained elevated even in the aftermath of its early 2021 short squeeze; short interest has surpassed 20% for significant stretches in 2022 and 2023.
Profitability and Growth
A company with high profit margins is also typically a safer investment than one with low profit margins. GameStop has been profitable 5 times over the past 10 years.