GameStop Plans 4-For-1 Split
The meme stock saga continues.
The meme stock saga continues.
GameStop’s stock split is finally happening.
The company announced plans to split its stock four-for-one later this month, sending shares higher after the market closed on Wednesday. Shareholders of record at the close of business on July 18 will receive three additional shares for every share owned via a stock dividend. The additional shares will be distributed on July 21, and GameStop (ticker: GME) stock will begin trading on a split-adjusted basis on July 22.
GameStop stockholders in June voted in favour of expanding the company’s share authorisation to one billion from 300 million in order to facilitate a split. The company said in March that the higher authorisation would allow it to implement a split and “provide flexibility for future corporate needs.”
Shares of GameStop rose 5% to US$123.25 in after-hours trading even though stock splits don’t make a company more valuable, given that they are akin to cutting a pie into smaller slices. If GameStop split at its recent after-hours levels, it would trade at $30.81.
That is around the US$30 pre-split price target Wedbush analyst Michael Pachter assigns the stock, which he rates at Underperform. “Makes it more affordable for unsuspecting rubes who haven’t yet lost all of their money,” Pachter told Barron’s via email when asked about the split.
The stock has traded as high as $255.69 in the past 12 months, but it is still up significantly from its 2020 levels. Even the potential post-split number is well above where GameStop shares were trading before Chewy co-founder Ryan Cohen announced a stake and launched a campaign that kicked off the company’s meme-fueled run in January 2021. GameStop stock has fallen 20% in 2022, compared with a 19% drop for the S&P 500 index.
Cohen became the chairman of GameStop’s board a year ago. The company has added executives and employees with technology, e-commerce, and blockchain backgrounds to help turn things around as the business battles the shift to sales of videogames online rather than in stores.
Following the board and management shake-up, the company invested in fulfilment and customer-care efforts, as well as expanding its offerings to include more computer supplies and TVs. It is also launching a marketplace for nonfungible tokens. Experts, like Pachter, are sceptical such blockchain efforts will benefit the stock.
Reprinted by permission of Barron’s. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: July 7, 2022.
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
The actor nabbed a roughly 436sqm spread in a Jean Nouvel-designed tower in the city’s Chelsea neighbourhood.
Actor Hugh Jackman has paid approx. $30.37 million for a penthouse in New York’s Chelsea neighborhood, according to public records and a person familiar with the transaction.
Records show the condo unit last traded in 2012 for US$19.4 million. The penthouse had been on and off the market since October 2021 and was initially priced at US$25 million.
The sellers are Daniel Fischel and Sylvia Neil. Mr. Fischel is president of Chicago-based global economic consulting company Compass Lexecon and a former dean of the University of Chicago Law School. Ms. Neil was an associate dean at the school. A call to Mr. Fischel’s office wasn’t immediately returned.
The roughly 435sqm, four-bedroom unit is located in a condominium designed by the architect Jean Nouvel, according to the listing with Noble Black of Douglas Elliman. The penthouse has roughly 14-foot-high floor-to-ceiling windows and about 343sqm of outdoor space, including a large roof terrace divided into dining and lounging areas. The apartment has views of the Hudson River as well as the downtown and Midtown skylines, according to the listing.
Amenities at the 57-unit building include a lap pool, fitness center and screening room.
A spokesperson for Mr. Jackman couldn’t immediately be reached for comment.
The purchase comes as Mr. Jackman and his wife, Deborra-Lee Furness, recently listed their apartment at a Richard Meier-designed tower on nearby Perry Street for $38.9 million. That unit is listed by Deborah Grubman, David Adler and Paul Albano of the Corcoran Group.
Mr. Jackman has starred in films such as “The Wolverine,” “X-Men” and “The Greatest Showman.” He is currently starring in “The Music Man” on Broadway.
Reprinted by permission of Mansion Global. Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: August 9, 2022.