Develop reported GLUU recently outlined a plan to eliminate 107 positions across the company, along with closing one or two of its studios. GLUU also may rehire employees in India or San Francisco to conclude 2017 with a similar headcount, according to a company filing with the U.S. Securities and Exchange Commission (SEC).
In addition, Develop noted GLUU could face $3.5 million in taxes if it closes its studio in Bellevue, Washington. This total may increase to $5.4 million if GLUU decides to close both its Bellevue studio and its studio in Long Beach, California.
GLUU shares closed at a price of $2.24 on Jan. 10. The shares feature a one-year price high of $4.00 and a one-year price low of $1.73.
GLUU Earns a Consensus Hold Rating
Many brokerage firms appear split on GLUU shares, which is reflected in recent ratings of the company's stock.
The Cerbat Gem indicated that GLUU currently features a consensus Hold rating among brokerages that are covering the business's stock. Also, GLUU shares boast a one-year price target of $2.79 among these brokerages.
Furthermore, The Cerbat Gem pointed out that numerous equities research analysts recently commented on GLUU shares, including:
- Canaccord Genuity: Verified its Hold grade on Nov. 1.
- Piper Jaffray: Restated its Overweight rating on Nov. 7.
- Roth Capital: Issued a $2.00 price objective for GLUU shares on Nov. 21.
- Mizuho: Provided a Neutral recommendation on Dec. 22.
GLUU recorded total revenue of $51.4 million in the third quarter of 2016, down from $63.3 million one year earlier. However, GLUU Chief Financial Officer Eric Ludwig said in a press release that he believes the company is positioned for long-term earnings growth. "Our core catalog titles continued to be the primary drivers of our third quarter bookings. … [We] are confident that Glu can execute its long-term growth strategy, particularly given our strong balance sheet," he stated.