Key Points
- CEO Ryan Cohen bought 700,000 GameStop shares at an average of $24.41, investing approximately $17.1 million and increasing his stake 1.71% to 41.65 million shares.
- The purchase extends Cohen’s recent buying streak, which includes more than 2.6 million additional shares acquired in September, signaling continued insider confidence in GameStop.
- GameStop’s financial results remain mixed: quarterly revenue fell 18.7% year over year to $790.2 million, while EPS of $0.27 met estimates; analysts maintain an overall “Hold” rating.
GameStop Corp. (NYSE:GME - Get Free Report) CEO Ryan Cohen bought 700,000 shares of the company's stock in a transaction dated Friday, October 2nd. The stock was purchased at an average cost of $24.41 per share, for a total transaction of $17,087,000.00. Following the completion of the transaction, the chief executive officer owned 41,648,522 shares of the company's stock, valued at $1,016,640,422.02. This represents a 1.71% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink.
Ryan Cohen also recently made the following trade(s):
- On Tuesday, September 29th, Ryan Cohen purchased 450,000 shares of GameStop stock. The stock was purchased at an average price of $23.48 per share, with a total value of $10,566,000.00.
- On Monday, September 21st, Ryan Cohen acquired 1,150,680 shares of GameStop stock. The stock was purchased at an average cost of $22.94 per share, with a total value of $26,396,599.20.
- On Thursday, September 10th, Ryan Cohen acquired 1,000,000 shares of GameStop stock. The shares were purchased at an average price of $20.38 per share, for a total transaction of $20,380,000.00.
GameStop Price Performance
Shares of NYSE:GME opened at $24.66 on Friday. The company's fifty day moving average is $20.49 and its two-hundred day moving average is $21.91. The company has a quick ratio of 8.07, a current ratio of 8.72 and a debt-to-equity ratio of 0.68. GameStop Corp. has a 12-month low of $17.79 and a 12-month high of $26.99. The company has a market cap of $12.44 billion, a P/E ratio of 16.23 and a beta of 1.63.
GameStop (NYSE:GME - Get Free Report) last released its earnings results on Tuesday, September 8th. The company reported $0.27 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.27. The company had revenue of $790.20 million during the quarter, compared to analyst estimates of $756.85 million. GameStop had a return on equity of 13.57% and a net margin of 25.16%.The company's revenue for the quarter was down 18.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.31 earnings per share.
Trending Headlines about GameStop
Here are the key news stories impacting GameStop this week:
- Positive Sentiment: CEO Ryan Cohen purchased 700,000 GME shares for approximately $17.1 million. The shares were acquired at an average price of $24.41, increasing his holdings by 1.71% to 41.65 million shares. The sizable open-market purchase signals continued confidence from GameStop’s top executive and is likely the primary catalyst behind the stock’s strength. SEC filing for Ryan Cohen’s GameStop purchase
- Positive Sentiment: Director Nat Turner also bought 10,462 shares worth approximately $254,540. The purchase, made at an average price of $24.33, adds to a growing pattern of insider buying and reinforces the perception that company insiders consider GME attractively valued despite its volatility. SEC filing for Nat Turner’s GameStop purchase
- Positive Sentiment: The latest purchases extend a broader insider-buying streak. Cohen has repeatedly added shares in recent weeks, while other directors have followed with purchases at progressively higher prices. This concentration of insider demand is building bullish attention around GameStop and may be supporting the stock’s momentum. Report on Ryan Cohen and GameStop director purchases
- Neutral Sentiment: GameStop’s financial picture remains mixed. Its latest quarterly revenue declined 18.7% year over year to $790.2 million, although earnings of $0.27 per share matched estimates and revenue exceeded consensus. Institutional ownership and trading above key moving averages provide some support, but these factors do not resolve the company’s longer-term growth challenge.
- Negative Sentiment: Analyst sentiment remains cautious. The average rating is “Hold,” and at least one rating service recently downgraded the shares. Continued revenue contraction or failure to convert insider confidence into sustainable operating growth could limit further gains.
Hedge Funds Weigh In On GameStop
A number of hedge funds have recently modified their holdings of GME. Dimensional Fund Advisors LP grew its position in shares of GameStop by 189.1% in the first quarter. Dimensional Fund Advisors LP now owns 3,909,284 shares of the company's stock valued at $90,046,000 after purchasing an additional 2,557,079 shares during the last quarter. Renaissance Technologies LLC increased its stake in GameStop by 376.2% during the first quarter. Renaissance Technologies LLC now owns 2,650,303 shares of the company's stock valued at $61,063,000 after acquiring an additional 2,093,755 shares during the period. WINTON GROUP Ltd acquired a new position in GameStop in the 2nd quarter valued at approximately $5,111,000. Pacer Advisors Inc. raised its holdings in GameStop by 19.3% in the 4th quarter. Pacer Advisors Inc. now owns 1,112,535 shares of the company's stock valued at $22,340,000 after acquiring an additional 180,356 shares in the last quarter. Finally, First Trust Advisors LP lifted its position in shares of GameStop by 412.7% in the 1st quarter. First Trust Advisors LP now owns 208,650 shares of the company's stock worth $4,807,000 after acquiring an additional 167,956 shares during the period. 29.21% of the stock is owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In
A number of brokerages have commented on GME. Wall Street Zen lowered GameStop from a "buy" rating to a "hold" rating in a research report on Monday, September 7th. 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 stock has an average rating of "Hold".
Check Out Our Latest Report on GME
GameStop Company Profile
(
Get Free Report)
GameStop Corp. is a multichannel retailer focused on video game products and related entertainment merchandise. The company sells new and pre-owned video game hardware, software, accessories and consumer electronics through its retail stores and e-commerce websites. Its product offerings include gaming consoles, controllers, headsets, games and other equipment for major platforms.
GameStop also sells collectibles, apparel, toys, trading cards and other products connected to video games and popular culture.
Further Reading
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