GameStop (NYSE:GME) CEO Purchases 1,000,000 Shares of Stock

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

GameStop Trading Up 2.7%

GME traded up $0.53 during midday trading on Thursday, reaching $20.42. 10,561,059 shares of the company’s stock traded hands, compared to its average volume of 7,076,625. GameStop Corp. has a 52 week low of $17.79 and a 52 week high of $28.10. The company has a debt-to-equity ratio of 0.71, a current ratio of 12.40 and a quick ratio of 11.91. The firm has a fifty day moving average of $20.11 and a two-hundred day moving average of $22.01. The stock has a market capitalization of $9.16 billion, a price-to-earnings ratio of 13.43 and a beta of 1.72.

GameStop (NYSE:GME) last issued its quarterly earnings data 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 13.94% and a net margin of 25.16%.The firm had revenue of $790.20 million for the quarter, compared to analyst estimates of $756.85 million. During the same period last year, the company earned $0.31 EPS. The business’s quarterly revenue was down 18.7% compared to the same quarter last year.

Key Headlines Impacting GameStop

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.

Institutional Trading of GameStop

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Renaissance Technologies LLC boosted its position in shares of GameStop by 376.2% in the 1st quarter. Renaissance Technologies LLC now owns 2,650,303 shares of the company’s stock worth $61,063,000 after purchasing an additional 2,093,755 shares in the last quarter. Delta Global Management LP bought a new position in GameStop during the 1st quarter valued at approximately $3,448,000. Quantinno Capital Management LP raised its stake in GameStop by 377.8% during the first quarter. Quantinno Capital Management LP now owns 138,846 shares of the company’s stock valued at $3,199,000 after buying an additional 109,788 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in GameStop by 189.1% during the first quarter. Dimensional Fund Advisors LP now owns 3,909,284 shares of the company’s stock valued at $90,046,000 after buying an additional 2,557,079 shares during the last quarter. Finally, California State Teachers Retirement System boosted its holdings in GameStop by 22.5% in the first quarter. California State Teachers Retirement System now owns 493,286 shares of the company’s stock worth $11,365,000 after acquiring an additional 90,474 shares in the last quarter. 29.21% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

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