Skip to main content

Market Overview

GameStop Short Selling Reduces By Over Half: Report

Share:
GameStop Short Selling Reduces By Over Half: Report

Short selling activity in the shares of GameStop Corp (NYSE: GME) is slowing down as traders move to cover their bets, according to analytics company S3 Partners, Reuters reported Monday.

What Happened: The video game retailer’s 27.13 million shares were shorted in the week, which is 35 million lower than the number of shares shorted in the preceding week, as per Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners. 

See also: How‌ ‌to‌ ‌Buy‌ ‌GameStop‌ ‌(GME)‌ ‌Stock‌

Short interest in GameStop was $8.82 billion as of Friday, as per S3.

Why It Matters: As of early Monday, short-sellers incurred mark-to-market losses of $13.38 billion in GameStop on a year-to-date basis, according to S3.

Early Monday’s weakness in GameStop allowed short sellers to recoup some of their losses. Even so, the shares of the retailer have rallied 400% in the last week, thanks to Reddit investors.

The investors have also targeted other heavily shorted stocks such as AMC Entertainment Holdings Inc (NYSE: AMC), Nokia Oyj (NYSE: NOK), and Express, Inc (NYSE: EXPR).

See Also: GameStop's Power Surge: Will WallStreetBets Or The Short Sellers Come Out On Top?

“Fundamental and momentum shorts have incurred very large mark-to-market losses and they have been squeezed out of their positions,” said Dusaniwsky.

The analyst said that, over the last couple of days, he has seen some “serious short covering.”

On the last count in late January, Dusaniwsky said short-sellers had endured mark-to-market losses of more than $5 billion.

Price Action: GameStop shares fell 15.77% in the after-hours session to $189.52 on Monday. The shares closed the regular session 30.77% lower at $225.

Read Next: Citron Research No Longer Publishing Short Reports, Switches Focus To Multibaggers

Photo by Keith C on Flickr

 

Related Articles (GME)

View Comments and Join the Discussion!

Posted-In: Citron Research Reddit ReutersNews Penny Stocks Short Sellers Small Cap Media Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com