Motorsport Games Inc. Sees 56.9% Surge in Short Interest

Motorsport Games Inc. (NASDAQ:MSGM) experienced a notable rise in short interest in January 2024, reflecting increased bearish sentiment among investors. As of January 15, the total short interest reached 38,807 shares, marking a dramatic increase of 56.9% from the previous month’s total of 24,735 shares. This surge indicates a growing number of investors are betting against the stock.

The current short-interest ratio stands at 0.3 days, based on an average daily trading volume of 128,986 shares. This suggests that 0.8% of the company’s shares are currently sold short, which may signal investor caution regarding the firm’s future performance.

Current Stock Performance and Financial Overview

On January 15, shares of Motorsport Games traded down by 0.4%, closing at $4.11. A total of 24,270 shares exchanged hands, which is below the average trading volume of 107,251. The company’s stock has demonstrated volatility, with a fifty-two week low of $0.73 and a high of $5.41. Its market capitalization is approximately $23.73 million, with a price-to-earnings ratio of 10.26 and a beta of 1.76, indicating a higher-than-average volatility compared to the market.

In its latest quarterly earnings report released on November 6, 2023, Motorsport Games reported earnings of $0.14 per share. The company achieved a net margin of 34.24% and a return on equity of 86.01%, alongside revenues totaling $3.10 million for the quarter.

Investments and Shareholder Activity

Institutional interest in the company has also seen movement. Dimensional Fund Advisors LP acquired a new stake in Motorsport Games during the third quarter, as noted in its recent Form 13F filing with the Securities and Exchange Commission (SEC). This investment included 16,814 shares, valued at approximately $46,000. Following this acquisition, Dimensional Fund Advisors LP now holds 0.29% of Motorsport Games. Overall, institutional investors and hedge funds collectively own 1.66% of the company’s stock.

Motorsport Games, headquartered in Miami, Florida, operates as a publicly traded developer and publisher of interactive motorsport entertainment. The company focuses on delivering officially licensed racing simulation titles and managing esports competitions, leveraging its licenses from major motorsport organizations such as NASCAR and the Fédération Internationale de l’Automobile (FIA).

This increase in short interest, along with recent investment activities, highlights the evolving landscape for Motorsport Games as it navigates its way through the competitive gaming market. Investors and analysts will be watching closely as the company continues to develop its portfolio and respond to market demands.