TLDR
- Wealth Enhancement Advisory Services invested $1.83 million in GameStop stock during Q2
- GameStop beat earnings expectations at $0.25 per share versus $0.19 analyst estimates
- Revenue jumped 21.8% year-over-year to $972.20 million, beating forecasts
- GameStop stock rose 4.5% following split and warrant announcements
Wealth Enhancement Advisory Services LLC made a fresh investment in GameStop Corp during the second quarter. The firm purchased 77,749 shares valued at approximately $1.83 million, joining other institutional investors increasing their positions.
Several major investors adjusted their GameStop holdings in recent quarters. Fifth Third Bancorp raised its stake by 10.3% while State of Wyoming increased its position by 11.0%. SBI Securities Co. Ltd. made the largest percentage jump, boosting its holdings by 31.8%.
Institutional investors and hedge funds now own 29.21% of GameStop’s outstanding shares. This professional backing provides stability for the volatile meme stock.
Stock Split and Warrant Program Drive Trading Activity
GameStop shares jumped 4.5% after the company announced an 11-10 stock split scheduled for October 3rd. Shareholders will receive newly created shares after the closing bell on October 2nd.
The split makes shares more affordable for retail investors at lower price points. GameStop will also issue special warrants on October 3rd to qualifying shareholders.
Investors holding 10 GameStop shares or certain convertible notes receive one warrant. These warrants convert into GameStop stock at a predetermined price in 2026, giving shareholders future buying opportunities.
Retail trading chatter spiked across social media platforms following the warrant announcement. Message volume increased as traders anticipated price movements around the October 3rd record date.
Strong Earnings Beat Wall Street Expectations
GameStop delivered impressive second-quarter results that surprised analysts. The company reported earnings of $0.25 per share, beating Wall Street expectations of $0.19 per share.
Revenue reached $972.20 million, well above consensus estimates of $823.25 million. This represented a 21.8% increase compared to the same quarter last year, showing strong business momentum.
The company maintained healthy financial metrics with a return on equity of 7.72% and net margin of 9.41%. GameStop’s current ratio sits at 11.37 with a quick ratio of 10.79, indicating strong liquidity.
GameStop stock opened Monday at $26.40, trading within its 52-week range of $20.30 to $35.81. The stock carries a market cap of $11.82 billion and trades at a PE ratio of 36.16.
Despite positive earnings, analyst coverage remains limited. Wedbush dropped GameStop coverage while maintaining a “strong sell” rating with a $13.50 price target.
General Counsel Mark Haymond Robinson sold 11,055 shares in July at $24.18 per share, totaling $267,309.90. Company insiders own 8.58% of outstanding stock.
The warrant program and new Pokemon trading card launches have generated additional retail interest. GameStop’s brand strength in collectibles continues driving engagement among dedicated fan bases.
