GameStop (NYSE:GME) CEO Ryan Cohen Acquires 1,000,000 Shares of Stock

GameStop Corp. (NYSE:GME) CEO Ryan Cohen purchased 1,000,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The shares were acquired at an average cost of $20.38 per share, for a total transaction of $20,380,000.00. Following the purchase, the chief executive officer owned 39,347,842 shares of the company’s stock, valued at $801,909,019.96. This represents a 2.61% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

GameStop Stock Performance

Shares of NYSE:GME opened at $20.42 on Friday. GameStop Corp. has a 52 week low of $17.79 and a 52 week high of $28.10. The stock has a market capitalization of $9.16 billion, a P/E ratio of 13.43 and a beta of 1.72. The firm has a fifty day simple moving average of $20.06 and a two-hundred day simple moving average of $21.99. The company has a quick ratio of 11.91, a current ratio of 8.72 and a debt-to-equity ratio of 0.68.

GameStop (NYSE:GME) last posted its earnings results on Tuesday, September 8th. The company reported $0.27 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.27. GameStop had a net margin of 25.16% and a return on equity of 13.57%. The firm had revenue of $790.20 million for the quarter, compared to the consensus estimate of $756.85 million. During the same period in the previous year, the firm posted $0.31 EPS. The business’s quarterly revenue was down 18.7% on a year-over-year basis.

Wall Street Analyst Weigh In

GME has been the subject of several analyst reports. Wall Street Zen lowered GameStop from a “buy” rating to a “hold” rating in a research note on Monday. Weiss Ratings reissued a “hold (c)” rating on shares of GameStop in a research report on Wednesday, July 29th. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the company currently has a consensus rating of “Hold”.

Key GameStop News

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: CEO Ryan Cohen purchased 1 million GME shares for approximately $20.4 million, increasing his ownership by 2.61%. Director Alain Attal also bought 5,000 shares for $100,000, while Director James Grube purchased 10,255 shares for roughly $196,000. The purchases may reinforce investor confidence in GameStop’s valuation and strategy. Ryan Cohen GameStop stock purchase filing James Grube GameStop stock purchase
• Positive Sentiment: Director Lawrence Cheng recently bought 55,000 shares for about $1.03 million, increasing his direct stake by 62.5%. The cluster of insider buying following earnings is supporting the bullish case among retail investors. Lawrence Cheng GameStop stock purchase
• Positive Sentiment: GameStop reported adjusted EPS of $0.27, matching consensus, while revenue of $790.2 million exceeded estimates near $756.8 million. Collectibles revenue jumped 57%, providing evidence that the company’s merchandise strategy may be gaining traction. GameStop second-quarter earnings beat
• Neutral Sentiment: Unusually high call-option activity and speculation about how Ryan Cohen may deploy GameStop’s large cash balance are adding to trading momentum, but they do not establish a fundamental change in the business. Reports that GameStop may reconsider an eBay bid also remain unconfirmed. GameStop eBay speculation and earnings
• Negative Sentiment: Revenue declined 18.7% year over year and EPS fell from $0.31 to $0.27, with software and hardware sales weakening. Analysts continue to question whether collectibles growth can offset contraction in GameStop’s traditional gaming operations; one report favors eBay as the cleaner, more profitable investment. GameStop comeback case and eBay comparison

Institutional Trading of GameStop

Several institutional investors have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. grew its stake in shares of GameStop by 308.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 969 shares of the company’s stock valued at $26,000 after buying an additional 732 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of GameStop by 226.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,277 shares of the company’s stock worth $31,000 after acquiring an additional 886 shares during the last quarter. Advisory Services Network LLC bought a new stake in shares of GameStop during the 3rd quarter worth approximately $39,000. Los Angeles Capital Management LLC purchased a new position in GameStop during the 4th quarter valued at $39,000. Finally, Rockefeller Capital Management L.P. boosted its holdings in GameStop by 805.6% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,264 shares of the company’s stock valued at $45,000 after acquiring an additional 2,014 shares during the period. Institutional investors own 29.21% of the company’s stock.

About GameStop

GameStop Corp. is a multichannel retailer specializing in video games, gaming hardware, accessories and related entertainment products. Its offerings include new and pre-owned consoles and games, controllers, headsets, collectibles, apparel, toys and trading cards. The company sells through its retail stores, e-commerce websites and other digital channels.

Founded in 1984 as Babbage’s, the company expanded through acquisitions and adopted the GameStop name in 2000. It has historically operated stores in the United States, Canada, Australia and several European markets, although its international footprint has changed over time as the company has closed or sold certain operations.