Insider Buying: GameStop (NYSE:GME) CEO Purchases $17,087,000.00 in Stock

GameStop Corp. (NYSE:GME) 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 acquisition, the chief executive officer owned 41,648,522 shares in the company, valued at $1,016,640,422.02. This trade represents a 1.71% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

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

• On Tuesday, September 29th, Ryan Cohen purchased 450,000 shares of GameStop stock. The shares were acquired at an average price of $23.48 per share, with a total value of $10,566,000.00.
• On Monday, September 21st, Ryan Cohen purchased 1,150,680 shares of GameStop stock. The shares were acquired at an average cost of $22.94 per share, for a total transaction of $26,396,599.20.
• On Thursday, September 10th, Ryan Cohen acquired 1,000,000 shares of GameStop stock. The stock was acquired at an average price of $20.38 per share, for a total transaction of $20,380,000.00.

GameStop Stock Performance

GME opened at $24.66 on Monday. GameStop Corp. has a 12-month low of $17.79 and a 12-month high of $26.99. The stock has a market cap of $12.44 billion, a price-to-earnings ratio of 16.23 and a beta of 1.63. The business has a 50 day moving average of $20.49 and a 200-day moving average of $21.90. 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 (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 return on equity of 13.57% and a net margin of 25.16%.The business had revenue of $790.20 million for the quarter, compared to analyst estimates of $756.85 million. During the same period in the previous year, the firm earned $0.31 EPS. The firm’s revenue was down 18.7% compared to the same quarter last year.

Key Stories Impacting 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.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on GME. Weiss Ratings reissued a “hold (c)” rating on shares of GameStop in a research report on Wednesday, July 29th. Wall Street Zen downgraded shares of GameStop from a “buy” rating to a “hold” rating in a report on Monday, September 7th. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat, GameStop currently has an average rating of “Hold”.

Institutional Trading of GameStop

Several institutional investors have recently added to or reduced their stakes in GME. Dimensional Fund Advisors LP lifted its holdings in shares of GameStop by 189.1% during the first quarter. Dimensional Fund Advisors LP now owns 3,909,284 shares of the company’s stock worth $90,046,000 after buying an additional 2,557,079 shares in the last quarter. Renaissance Technologies LLC increased its position in GameStop by 376.2% during the first quarter. Renaissance Technologies LLC now owns 2,650,303 shares of the company’s stock worth $61,063,000 after acquiring an additional 2,093,755 shares during the period. WINTON GROUP Ltd bought a new position in GameStop during the second quarter worth about $5,111,000. Pacer Advisors Inc. raised its stake in GameStop by 19.3% in the 4th quarter. Pacer Advisors Inc. now owns 1,112,535 shares of the company’s stock worth $22,340,000 after purchasing an additional 180,356 shares in the last quarter. Finally, First Trust Advisors LP raised its stake in 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 purchasing an additional 167,956 shares in the last quarter. 29.21% of the stock is currently owned by institutional investors.

GameStop Company Profile

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.