GMBL Stock: Opportunities and Risks for Investors

Esports Entertainment Group (GMBL Stock) is a company traded on the NASDAQ exchange. As of today, its GMBL stock price is 0.09 with a market capitalization of 19.22 million. The stock price has seen a significant decline in recent months, with a year-to-date price change of 20.95% and a 1-year price change of -97.14%.

GMBL Stock Dividend Announcement

Esports Entertainment Group, Inc. (NASDAQ: GMBL) has recently announced that its Board of Directors has declared a monthly cash dividend for its 10.0% Series A Cumulative Redeemable Convertible Preferred Stock for February 2023. The dividend per share is $0.08 and the record date is February 15, 2023, with the payment date set for February 28, 2023. This news is likely to be welcomed by investors who hold this type of preferred stock and are looking for income from their investments. However, it is important to note that this dividend only applies to the 10.0% Series A Cumulative Redeemable Convertible Preferred Stock and not to the company’s common stock.

Financial Performance

GMBL Stock Growth in Revenue

The company’s financial performance has been mixed. On one hand, the company has seen significant growth in revenue, which was reported at 58.35 million for the fiscal year 2022. Additionally, the company reported a net income of 102.92 million for the same period. However, the company’s operating expenses have also been high, with a cost of revenue of 24.16 million and selling, general and administrative expenses of 77.05 million.

GMBL Balance Sheet Concerns

The company’s balance sheet also presents some concerns. The company’s current ratio (TTM) is 0.16, which is considered low and may indicate difficulty in meeting short-term obligations. Additionally, the company’s cash ratio (TTM) of 0.05 is very low and may also be a cause for concern. The company’s negative cash conversion cycle (TTM) of -197.92 also suggests that it is not effectively managing its cash flows.

GMBL Stock Valuation Metrics

The company’s stock valuation metrics are also not particularly favorable. Its price-to-earnings (P/E) ratio of -0.02 is negative, which may indicate that the company is not generating earnings. Its price-to-book value ratio (TTM) of -0.25 is also negative, which may indicate that the company’s book value is lower than its current stock price. The company’s dividend yield (TTM) is also None, which may not be attractive to investors seeking income from their investments.

GMBL Major Shareholders

GMBL Insider Ownership

As of September 29, 2022, the major holders of Esports Entertainment Group, Inc. (GMBL) include insider owners, institutional investors, and mutual funds. Insider ownership of the company’s shares stands at 2.27% while institutional ownership stands at 5.67%. The float held by institutions is 5.80%. A total of 45 institutions hold shares in the company.

GMBL Institutional Ownership

The top institutional holders of GMBL shares include Sabby Management, LLC, Walleye Capital LLC, GSA Capital Partners LLP, Warberg Asset Management LLC, and The Vanguard Group, Inc. These institutions hold significant portions of the company’s shares, with Sabby Management holding the largest percentage at 18.54%.

GMBL Mutual Fund Holdings

In terms of mutual fund holdings, the top mutual fund holders of GMBL shares include the Vanguard Extended Market Index Fund, the Fidelity Extended Market Index Fund, the Fidelity Series Total Market Index Fund, the Fidelity Total Market Index Fund, and the Fidelity NASDAQ Composite Index Fund. The Vanguard Extended Market Index Fund holds the largest portion of GMBL shares among the mutual funds, with a 5.44% stake.

This information provides valuable insight into the ownership structure of Esports Entertainment Group, Inc. and may help potential investors make informed decisions about the company’s stock.

GMBL Overview of Esports Entertainment Group’s Business

Esports Entertainment Group (GMBL) is a full-stack esports and online betting company offering a comprehensive range of services and unique technological infrastructure for businesses to engage the esports and gaming communities worldwide. With partnerships with top names in the NFL, NHL, NBA, FIFA, and exclusive access to a large portion of the North American casino industry, EEG is well-positioned in the industry. Its subsidiary, Esports Gaming League (EGL), hosts a community of over 425,000 gamers and provides turn-key esports event design, tournament operations, and more. With nearly 20 years of experience, EEG is a leader in the industry.

GMBL Summary of Opportunities and Challenges

In conclusion, while Esports Entertainment Group, Inc. has seen growth in its revenue, its high operating expenses and weak balance sheet may be cause for concern for potential investors. Additionally, the company’s negative P/E ratio and low price-to-book value ratio may also be red flags for potential investors. As with any investment, it is important to thoroughly research and consider all factors before making a decision.

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