GameStop CEO Ryan Cohen Buys 500,000 Shares for Over $10.5 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 46m ago
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Source: Fool
- Insider Buying Signal: GameStop CEO Ryan Cohen recently purchased 500,000 shares at an average cost of approximately $21.12 per share, totaling over $10.5 million, indicating his confidence in the company's future and potentially attracting renewed investor interest in this famous meme stock.
- Business Transformation Efforts: Since taking over, Cohen has explored various strategies to revitalize the business, including venturing into collectibles and purchasing Bitcoin; despite a 21% stock price drop over the past year, the collectibles segment has seen a remarkable 55% revenue growth during this period, highlighting new growth potential.
- Improved Financial Health: In the first ten months of 2025, GameStop significantly increased its operating cash flow, achieving a diluted earnings per share of $0.67, a substantial improvement from the same period last year, indicating successful cost-cutting and asset divestiture efforts.
- Market Outlook Analysis: While the hardware business shows no significant decline, the software segment continues to struggle; analysts project nearly $1 in EPS and total revenue of $4.16 billion for 2026, reflecting potential future growth, but with a current P/E ratio close to 22, careful evaluation of investment value is still necessary.
Analyst Views on GME
About GME
GameStop Corp. offers games and entertainment products through its stores and ecommerce platforms. The Company operates in four geographic segments: United States, Canada, Australia and Europe. Each segment consists primarily of retail operations, with the significant majority focused on games, entertainment products and technology. The Company has a total of approximately 3,203 stores across all of its segments: 2,325 in the United States, 193 in Canada, 374 in Australia, and 311 in Europe. Its stores and ecommerce sites operate primarily under the names GameStop, EB Games and Micromania. Its Australia and Europe segments also include 38 pop culture-themed stores selling collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers in international markets operating under the Zing Pop Culture brand. Its retail stores are generally located in strip centers, shopping malls and pedestrian areas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
