• GameStop stock falls 0.16% on Thursday to close at $166.58.
  • GME stock rallies sharply in after hours after a stock split is announced.
  • GME shares broke above $200 in Thursday afterhours session.

GameStop stock (GME) looked to be going the way of other meme names such as AMC Entertainment on Thursday as it gave up some more ground. While the move was small, the stock did close lower on the day, and so the recent rally looked to be running out of steam. This marked the third down day in a row for GME stock.

GameStop Stock News: Split me baby one more time

However, GameStop has turned things around and then some in the Thursday afterhours market. This is because the company announced it was going to seek approval for a stock split at the next shareholders meeting. Management seeks to increase its share count from 300 million to 1 billion shares. The company last did a 2-for-1 share split in 2007. Stock splits are proving popular lately with Tesla (TSLA) the latest to hitch onto the stock splitting bandwagon following Amazon (AMZN) and Google (GOOGL). All of these companies have seen a positive correlation between the stock split and stock performance. Retail traders, therefore, like the news and have seen fit to gorge themselves on GME stock in afterhours trading. 

A nice trade by GameStop CEO Ryan Cohen as he only announced last week on March 22 that he had bought 100,000 shares at an average price of $101.76. GME spiked above $200 in after-hours, so he has nearly doubled his money in a week! We have said before that insider buys are more powerful to track than insider sells. The share split proposal needs to be ratified at the next GameStop shareholder meeting, but a date and venue for this meeting has yet to be set. 

GameStop Stock Forecast

Tuesday’s high was $199.41, which was brief as the stock slid sharply lower thereafter. Stabilizing above this level is the big test for GME stock then. Doing so and the big double top at $250 will be the next test. Failure will see a test of support at $160. 

GME chart, daily

This article was originally published by Fxstreet.com.Read the original article here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here