Insider Buying: GameStop (NYSE:GME) CEO Purchases $26,396,599.20 in Stock

GameStop Corp. (NYSE:GME) CEO Ryan Cohen purchased 1,150,680 shares of GameStop stock in a transaction on Monday, September 21st. The shares were acquired at an average cost of $22.94 per share, with a total value of $26,396,599.20. Following the completion of the transaction, the chief executive officer directly owned 40,498,522 shares in the company, valued at $929,036,094.68. The trade was a 2.92% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Ryan Cohen also recently made the following trade(s):

• On Thursday, September 10th, Ryan Cohen acquired 1,000,000 shares of GameStop stock. The shares were acquired at an average price of $20.38 per share, with a total value of $20,380,000.00.

GameStop Stock Up 0.7%

GME stock opened at $24.21 on Thursday. The firm’s fifty day simple moving average is $20.12 and its 200-day simple moving average is $21.90. The company has a market capitalization of $12.21 billion, a P/E ratio of 15.93 and a beta of 1.72. The company has a debt-to-equity ratio of 0.68, a current ratio of 8.72 and a quick ratio of 8.07. GameStop Corp. has a 12 month low of $17.79 and a 12 month high of $28.10.

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

Analyst Ratings Changes

GME has been the topic of a number of recent research reports. Weiss Ratings restated a “hold (c)” rating on shares of GameStop in a research note on Wednesday, July 29th. Wall Street Zen downgraded GameStop from a “buy” rating to a “hold” rating in a report on Monday, September 7th. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the stock has an average rating of “Hold”.

GameStop News Roundup

Here are the key news stories impacting GameStop this week:

• Positive Sentiment: Ryan Cohen purchased 1,150,680 GameStop shares at prices between $22.76 and $23.02, increasing his stake by roughly 2.9%. His substantial personal investment is being interpreted as a signal that management views GME as undervalued and sees further turnaround potential. GameStop CEO buys $26.4 million of shares
• Positive Sentiment: Director Alain Attal bought 17,500 shares for approximately $402,000, following another purchase earlier in September. Multiple insiders buying shares in the open market can support investor confidence in the company’s valuation and outlook. GameStop director insider purchase
• Positive Sentiment: Reports say GameStop continues to pursue a possible eBay transaction, while Cohen’s latest investment reinforces expectations that he may pursue a major strategic move. Any deal could expand GameStop’s marketplace opportunities, although no acquisition has been confirmed. GameStop still wants eBay
• Neutral Sentiment: Trading activity increased as the insider purchases drew attention from retail investors. The move appears driven primarily by sentiment and expectations rather than a new earnings release or operating update.
• Negative Sentiment: GameStop’s fundamental turnaround remains unproven. Recent quarterly revenue declined 18.7% year over year, and the company faces uncertainty around any eBay-related strategy, including transaction timing, financing and execution risks. Analysts remain broadly cautious, with a consensus “Hold” rating.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. WINTON GROUP Ltd purchased a new stake in shares of GameStop during the 2nd quarter worth about $5,111,000. Sterling Investment Advisors Ltd. increased its stake in shares of GameStop by 33.8% in the 2nd quarter. Sterling Investment Advisors Ltd. now owns 18,316 shares of the company’s stock valued at $404,000 after purchasing an additional 4,627 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in GameStop in the 2nd quarter worth about $1,866,000. AlphaGrep UK Ltd acquired a new position in GameStop in the 2nd quarter worth about $708,000. Finally, Public Employees Retirement System of Ohio acquired a new position in GameStop in the 2nd quarter worth about $2,578,000. Hedge funds and other institutional investors own 29.21% of the company’s stock.

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.