Reviewing The Case For Glu Mobile Inc. (GLUU) Going Higher


BlackRock Fund Advisors recently announced the acquisition of new stake in Glu Mobile Inc. (NASDAQ:GLUU). The institutional investor has increased its shareholding in the Communication Services company by 15.99% to 18.12 million shares with purchase of 2.5 million shares. This fresh investment now brings its stake to 10.87% valued currently at $171.01 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.21 million to 10.81 million shares. And SSgA Funds Management, Inc. has lifted its position by 13.42% or 0.53 million shares – to 4.5 million shares.

With over 5.08 million Glu Mobile Inc. (GLUU) shares trading Tuesday and a closing price of $8.11 on the day, the dollar volume was approximately $41.22 million. The shares have shown a negative weekly performance of -0.37% and its price on 09/01/20 gained nearly 2.14%. Currently, there are 156.58M common shares owned by the public and among those 144.44M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for GLUU have a consensus price objective of $11.09. The analysts have set the share’s price value over the next 12 months at a high of $13.00 and a low of $9.80 should the stock experience a downside. Incidentally, analysts’ outlook for the Glu Mobile Inc. stock is 1.90 for the next 12 months. The average price target is 27.59% above its last price level and an upside to the estimated low will see the stock gain 17.24% over that period. But an upside of 37.62% will see the stock hit the forecast high price target while mean target price for the stock is $11.00.

Insiders at the company have transacted a total of 92 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 49 of these insider trades were purchases, accounting for 2,718,874 shares. Insider sales of the common stock occurred on 43 occasions, with total insider shares sold totaling 2,724,099 shares.

The top 3 mutual fund holders in Glu Mobile Inc. are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and iShares Russell 2000 ETF. iShares Core S&P Small Cap ETF owns 8.21 million shares of the company’s stock, all valued at over $77.54 million. The company bought an additional 51636.0 shares recently to bring their total holdings to about 4.93% of the shares outstanding. Vanguard Total Stock Market Index sold 5590.0 shares to see its total holdings shrink to 3.99 million shares valued at over $37.68 million and representing 2.40% of the shares outstanding. iShares Russell 2000 ETF sold -0.12 million shares to bring its total holdings to over 2.67 million shares at a value of $25.19 million. iShares Russell 2000 ETF now owns shares totaling to 1.60% of the shares outstanding.

Shares of Glu Mobile Inc. (NASDAQ: GLUU) opened at $8.221, up $0.28 from a prior closing price of $7.94. However, the script later closed the day at $8.11, up 2.14%. The company’s stock has a 5-day price change of -0.37% and -15.17% over the past three months. GLUU shares are trading 34.05% year to date (YTD), with the 12-month market performance up to 89.93% higher. It has a 12-month low price of $3.98 and touched a high of $10.85 over the same period. Currently, 5.08 million shares have been traded, compared to an average intraday trading volume of 4.90 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.13%, -9.21%, and 8.11% respectively.

Institutional ownership of Glu Mobile Inc. (NASDAQ: GLUU) shares accounts for 76.60% of the company’s 156.58M shares outstanding. Mutual fund holders own 36.71%, while other institutional holders and individual stakeholders account for 39.80% and 22.99% respectively.

It has a market capitalization of $1.42B and a beta (3y monthly) value of 0.59. The earnings-per-share (ttm) stands at -$0.09. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.78% over the week and 4.83% over the month.

Analysts forecast that Glu Mobile Inc. (GLUU) will achieve an EPS of $0.07 for the current quarter, $0.11 for the next quarter and $0.44 for 2021. The lowest estimate earnings-per-share for the quarter is $0.05 while analysts give the company a high EPS estimate of $0.11. Comparatively, EPS for the current quarter was $0.07 a year ago. Earnings per share for the fiscal year are expected to increase by 160.40%, and 22.35% over the next financial year. EPS should grow at an annualized rate of 15.00% over the next five years, compared to -7.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate Glu Mobile Inc. (GLUU) as a “Strong Buy” at a consensus score of 1.90. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 1 of the 12 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the GLUU, a number of firms have released research notes about the stock. Goldman stated their Buy rating for the stock in a research note on September 01, 2020, with the firm’s price target at $9.80. UBS coverage for the Glu Mobile Inc. (GLUU) stock in a research note released on June 10, 2020 offered a Buy rating with a price target of $13. Morgan Stanley was of a view on May 11, 2020 that the stock is Equal-Weight, while The Benchmark Company gave the stock Buy rating on May 08, 2020, issuing a price target of $10- $11. The Benchmark Company on their part issued Buy rating on April 23, 2020.


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