Top 5 Power Players Investing Heavily in GameStop (GME) Stock in Q1

n May, GameStop (NYSE: GME) saw a significant surge in its stock price, largely driven by the reappearance of Roaring Kitty, a key figure in the 2021 meme stock phenomenon. Earlier this month, GME hit a new 52-week high of $64.83, but it has since fallen to the low $20 range, marking a decline of over 65%.

Capitalizing on the increased stock price, GameStop announced an at-the-market (ATM) offering on May 17. By May 24, the company had completed the offering, issuing and selling 45 million shares, which generated gross proceeds of $933.4 million. These funds will be used for general corporate purposes.

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"GameStop can take advantage of its share surge as long as the price remains elevated and they continue to have an at-the-market on file," said Art Hogan, Chief Market Strategist at B. Riley Wealth. However, Hogan noted that the company still has a considerable way to go before its intrinsic value is reflected in its stock price.

The video game retailer also released its preliminary first-quarter earnings report, projecting revenue between $872 million and $892 million, down from $1.237 billion the previous year. This represents a significant 29% decline from the midpoint of the forecast.

5 Investors Betting Big on GME Stock in Q1

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Institutional ownership is crucial as it provides liquidity and support for stocks. However, GME stock is not particularly favored among institutional investors. In Q1, 237 institutional investors disclosed a stake in the company, a decrease of 20 from Q4. The total number of shares owned by these investors fell by 2.19% to 87.12 million.

Hedge funds, a segment of institutional investors, were even more pessimistic. Only 37 hedge funds reported a stake in Q1, down from 48 in the previous quarter. Hedge fund exposure to GME dropped by 19% to 8.73 million shares.

Here are GameStop’s top five shareholders:

1. RC Ventures, owned by CEO Ryan Cohen: 36.84 million shares (as of May 22).
2. Vanguard: 25.35 million shares, having sold 95,242 shares during Q1.
3. BlackRock (NYSE: BLK): 22.61 million shares, acquiring 74,870 shares in Q1.
4. State Street (NYSE: STT): 8.28 million shares, adding 305,631 shares in Q1.
5. Geode Capital Management: 4.32 million shares, adding 183,062 shares in Q1.