Gamestop (GME.US) shares gained nearly 12% ahead of the US stock market open. The company joins a group of US companies that have recently announced planned stock splits, including Tesla, Amazon, Alphabet, Costco and Shopify.
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Gamestop shares have recently risen for a record 10 sessions in a row;
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The company became a target for retail investors in 2021, who bought shares in structured deals in a bid to unlock company's 'value' and liquidate hedge fund short positions
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The announced split will be the first in 15 years; the split will be in the form of a dividend;
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GME's board has asked shareholders for approval to increase the number of shares to 1 billion from the current 300 million;
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The ratio of the split is not yet known, to be determined at the next shareholders' meeting. In 2007, the company split the shares in a 2:1 ratio;
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The documents have not yet been filed with the SEC;
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The company is planning a new incentive plan to ultimately support future share issuances and will seek shareholder approval;
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GME.US shares have recently outperformed the S&P500 index rising nearly 12% over the past 3 months;
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The share split will have no direct impact on the value of Gamestop's shareholding. In practice, shareholders will receive X new shares per share, depending on which split ratio the company determines.
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Create account Try a demo Download mobile app Download mobile appGamestop shares (GME.US), W1 interval. Gamestop stock has been in a downtrend since late January 2021. Each time a dynamic attempt to enter new peaks ended with a sell-off of the shares. Finally, in mid-March 2022, the upward gap from the beginning of January 2021 at around 64 USD was covered. The price has since clearly rebounded from the declines. The price has overcome the 23.6 Fibonacci upward wave resistance. The key move may take place in the event of a sustained overcoming of the resistance near 38.2 retracement of the upward wave, which coincides with the level from the local peaks of the autumn of 2021, growth may then accelerate. However, the stock is still in a downtrend. Source: xStation5
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