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

GameStop Corp. (NYSE:GME) CEO Ryan Cohen purchased 1,000,000 shares of the stock in a transaction dated Thursday, September 10th. The stock was bought at an average cost of $20.38 per share, with a total value of $20,380,000.00. Following the transaction, the chief executive officer owned 39,347,842 shares in the company, valued at $801,909,019.96. The trade was a 2.61% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

GameStop Stock Up 2.7%

GME stock traded up $0.53 during trading on Thursday, hitting $20.42. 10,561,059 shares of the stock traded hands, compared to its average volume of 7,076,625. GameStop Corp. has a 1 year low of $17.79 and a 1 year high of $28.10. The firm’s 50 day moving average is $20.11 and its two-hundred day moving average is $22.01. The stock has a market cap of $9.16 billion, a price-to-earnings ratio of 13.43 and a beta of 1.72. The company has a debt-to-equity ratio of 0.71, a current ratio of 12.40 and a quick ratio of 11.91.

GameStop (NYSE:GME) last released its quarterly earnings data on Tuesday, September 8th. The company reported $0.27 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.27. The business had revenue of $790.20 million during the quarter, compared to analyst estimates of $756.85 million. GameStop had a net margin of 25.16% and a return on equity of 13.94%. GameStop’s revenue was down 18.7% compared to the same quarter last year. During the same period last year, the business earned $0.31 EPS.

Institutional Trading of GameStop

A number of hedge funds have recently bought and sold shares of GME. AQR Capital Management LLC lifted its holdings in GameStop by 312.2% in the first quarter. AQR Capital Management LLC now owns 29,438 shares of the company’s stock valued at $623,000 after acquiring an additional 22,297 shares during the period. Goldman Sachs Group Inc. grew its stake in shares of GameStop by 33.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 262,143 shares of the company’s stock valued at $5,851,000 after purchasing an additional 65,325 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of GameStop by 9.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,131,481 shares of the company’s stock valued at $25,255,000 after purchasing an additional 94,892 shares during the period. American Century Companies Inc. increased its position in shares of GameStop by 6.5% during the 2nd quarter. American Century Companies Inc. now owns 35,473 shares of the company’s stock valued at $865,000 after purchasing an additional 2,162 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its position 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 valued at $31,000 after purchasing an additional 886 shares during the last quarter. Hedge funds and other institutional investors own 29.21% of the company’s stock.

GameStop News Summary

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: GameStop reported adjusted Q2 EPS of $0.27 and revenue of $790.2 million, beating one cited consensus estimate of $0.19 EPS and approximately $756.8 million in revenue. Collectibles revenue surged 57%, providing evidence of growth in a potentially higher-margin business. GameStop beats second quarter estimates on collectibles
• Positive Sentiment: Director Lawrence Cheng bought 55,000 shares for approximately $1.03 million, increasing his direct holdings by 62.5%. Director James Grube separately purchased 10,255 shares for about $196,000, lifting his stake by 35%. The purchases are supporting retail-investor sentiment and may signal insider confidence in GME’s valuation or turnaround prospects. Lawrence Cheng GameStop stock purchase James Grube GameStop stock purchase
• Positive Sentiment: Trading activity has reflected bullish speculation: investors purchased about 245,499 GME call options, roughly 58% above typical daily volume. Some investors also believe the collectibles business could support a higher valuation than the shrinking legacy retail operation.
• Neutral Sentiment: Investors continue to monitor how Chairman Ryan Cohen may deploy GameStop’s substantial cash reserves. Reports about a possible eBay bid or withdrawal have fueled speculation, but no transaction was confirmed in the supplied coverage. GameStop’s month explained
• Negative Sentiment: Revenue declined 18.7% year over year to $790.2 million, while EPS fell from $0.31 to $0.27. Software and hardware sales weakened, raising concerns that collectibles growth may not yet offset deterioration in GameStop’s traditional gaming business.
• Negative Sentiment: Analyst coverage remains cautious, with GameStop generally rated “Hold”; one service recently downgraded the shares from “Buy” to “Hold.” Commentary also favors eBay as a cleaner and more profitable investment, limiting enthusiasm for GME.

Analyst Ratings Changes

A number of equities analysts recently weighed in on GME shares. Weiss Ratings restated a “hold (c)” rating on shares of GameStop in a report on Wednesday, July 29th. Wall Street Zen downgraded GameStop from a “buy” rating to a “hold” rating in a research note on Monday. One investment analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, GameStop currently has an average rating of “Hold”.

GameStop Company Profile

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.