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A GameStop store in Manhattan
Michael M. Santiago / Getty Images
GameStop
the wild stock race continued on Thursday. After cutting a third of its value on Wednesday, the stock fell 53% to $ 183.75 on Thursday.
The percentage gain of the stock (ticker: GME) was the biggest since February 24, when it jumped 104%. More than 50.4 million shares were traded on Thursday, according to Dow Jones Market Data. This represents 296% of the average volume of shares in five days and 147% of the average volume in 30 days. The closing gain is among the sixth largest percentage increases for
GameStop
in the registry.
GameStop’s shares remain tied to a mesh of technical factors, such as short interest, options activities and retail investor demand on Reddit – just like any Wall Street trader trading based on his comments. Data from the short sales analysis firm S3 Partners shows that 8.6 million GameStop shares were recently short sold, about 15.7% of the shares available for trading.
GameStop also won gains from other meme stocks
AMC Entertainment Holdings
(AMC), up 21% to $ 10.94, and
Koss
(KOSS), an increase of 57% to $ 25.80. GameStop’s stock at $ 183.75 is again above the highest analysts’ target price listed by FactSet, which is Jefferies analyst Stephanie Wissink, at $ 175. She increased her target by 1.066% after the earnings report. The next highest target is Joseph Feldman of the Telsey Advisory Group, who cut his target from $ 33 to $ 30 with the news.
GameStop reported somewhat disappointing earnings results after closing on Tuesday, although the news was accompanied by a trio of new hires of executives with experience in e-commerce. In a filing with the Securities and Exchange Commission, the company said it was considering whether to expand a previously announced $ 100 million stock offering in the market.
Separately in the process, the company revealed that it expects more directors than previously announced to retire from the board. The company said in January that Lizabeth Dunn, Raul Fernandez, James Symancyk and Kathy Vrabeck planned to leave, but the new document states that they must join Reginald Fils-Aimé, Paul Evans, William Simon and Carrie Teffner.
The departing board members appear to be Chewy alumni Ryan Cohen, Alan Attal and Jim Grube, as well as CEO George Sherman and activist board member Kurt Wolf. GameStop said earlier this month that Cohen is chairing a committee that aims to transform the retailer into another technology company. He is accompanied by Attal and Wolf on this team.
The company also appears to be selling more computer parts online, a deal that some analysts have asked the retailer to target more aggressively. Regardless, with its rating still well above historical ranges, the barrier is high to deliver what would be a historic turnaround.