GameStop will pay a three-share dividend to investors on July 21, and the stock will trade on a split-adjusted basis the following day.
GameStop ( GME ) – Get GameStop Corporation Report shares soared Thursday after the money-losing video game retailer unveiled a four-for-one stock split plan.
The company, a favorite of retail investors and one of the original “modal stocks” that led the trading frenzy last year, said shareholders will receive three dividends per share at the end of trading on July 21, with a split adjustment to be made the day after trading begins.
The split follows a similar move by Google parent Alphabet ( GOOGL ) – reported earlier this year by Alphabet Inc. and scheduled for release later this month – that will leave investors with one Google stock and another 19 dividend-paying shares, all at All for about $120 each. Amazon.com Inc. reported completing its own 20-to-1 stock split last month, while Tesla Inc. reported that shareholders will vote early on a 3-to-1 stock split in August.
However, short interest in GameStop remains high, with data from S3 Partners showing bets of just over $2.2 billion on the group, a figure that represents about 16.02 million shares, or 25.2 percent of the stock’s outstanding shares.
GameStop, which is looking to shift from a reliance on physical sales to a bigger, more dynamic online presence, said revenue for the three months ended April rose 8.1 percent from last year to $1.38 billion, with about half of that total coming from its digital channels.
Still, the group posted a loss of $2.08 per share and declined to answer analysts’ questions on its regular post-earnings call – as it has for several quarters.
GameStop shares rose 9 percent in pre-market trading, indicating an opening price of $128.00 per share, a move that would bring the stock’s year-to-date decline to about 13.8 percent.
Translated with www.DeepL.com/Translator (free version)