Big Money: Top Video Game Stocks Being Pumped, and Dumped by Hedge Funds

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(List compiled by Becca Lipman. Data sourced from Finviz.)

The current summer weather may be breaking all sorts of heat records, yet the minds of consumer companies are keeping cool with thoughts of Christmas sales.

Toys "R" Us has already secured the exclusive rights to My Keepon, a plush yellow bouncing blob that reacts to movements, and placing their bets on it as their Christmas blockbuster item.


But for the more mature crowd, video games are the hot item for this holiday season.

Electronic Arts (ERTS) is optimistic. "We think it should be a very attractive season for Electronic Arts as we have quite a few blockbusters in the pipeline."(via Reuters)

These includes "Star Wars: The Old Republic," which has already amassed a slew of followers and pre-orders, "Battlefield 3," "Need for Speed" and "Sims Pet."

EA has also been expending their market through free online games on Facebook where users can pay for extras to enhance their gaming experience.

In August the giant videogame producer closed its purchase of PopCap , creator of Bejeweled,  for $650M in cash and $100M in stock. "PopCap is an appealing target for almost any game company," according to Dean Takahashi of GamesBeat, "it’s a rare company that draws all kinds of gamers — social, casual, mobile and hardcore."

With the growing holiday season hype, shifting gaming platforms, and given the increasing prevalence of mobile game markets, we decided to analyze the trends of video game stocks.

To help gauge the industry we list below  the video game publishers that have seen the most significant hedge fund buying and selling over the current quarter. See details below.

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Greatest Levels of Institutional Buying – Big Money is Bullish on the Following Names:

1. Glu Mobile, Inc. (GLUU): Multimedia & Graphics Software Industry. Market cap of $196.09M. Current price at $3.64. Net institutional shares purchased over the current quarter at 7.5M, equivalent to 18.7% of the company's 40.10M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.21). The stock has had a couple of great days, gaining 16.29% over the last week. The stock has performed poorly over the last month, losing 37.56%.

2. Changyou.com Limited (CYOU): Multimedia & Graphics Software Industry. Market cap of $2.27B. Current price at $43.43. Net institutional shares purchased over the current quarter at 1.1M, equivalent to 10.97% of the company's 10.03M share float. The stock has had a couple of great days, gaining 9.64% over the last week.

3. Majesco Entertainment Co. (COOL): Multimedia & Graphics Software Industry. Market cap of $82.99M. Current price at $2.03. Net institutional shares purchased over the current quarter at 2.2M, equivalent to 6.43% of the company's 34.21M share float. The stock has had a couple of great days, gaining 21.56% over the last week. The stock has performed poorly over the last month, losing 32.56%.

4. International Game Technology (IGT): Multimedia & Graphics Software Industry. Market cap of $4.76B. Current price at $15.94. Net institutional shares purchased over the current quarter at 10.1M, equivalent to 3.39% of the company's 298.29M share float. The stock has performed poorly over the last month, losing 11.79%.

Greatest Levels of Institutional Selling – Big Money is Bearish on the Following Names:

1. Zoo Entertainment, Inc. (ZOOG): Multimedia & Graphics Software Industry. Market cap of $9.84M. Current price at $1.58. Net institutional shares purchased over the current quarter at -326.6K, equivalent to -26.99% of the company's 1.21M share float. The stock has performed poorly over the last month, losing 24.76%.

2. THQ Inc. (THQI): Multimedia & Graphics Software Industry. Market cap of $131.19M. Current price at $1.92. Net institutional shares purchased over the current quarter at -6.8M, equivalent to -10.89% of the company's 62.43M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.3). The stock is a short squeeze candidate, with a short float at 18.06% (equivalent to 9.88 days of average volume). The stock has performed poorly over the last month, losing 42.69%.

3. Perfect World Co., Ltd. (PWRD): Multimedia & Graphics Software Industry. Market cap of $916.15M. Current price at $18.25. Net institutional shares purchased over the current quarter at -3.2M, equivalent to -8.34% of the company's 38.38M share float. The stock has had a couple of great days, gaining 14.13% over the last week.

4. Activision Blizzard, Inc. (ATVI): Multimedia & Graphics Software Industry. Market cap of $12.57B. Current price at $10.99. Net institutional shares purchased over the current quarter at -26.6M, equivalent to -6.34% of the company's 419.71M share float. The stock has gained 2.57% over the last year.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Investing Ideas , Stocks


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