GameStop CEO Ryan Cohen Purchases 500,000 Shares, Increasing Stake to 9.3%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: stocktwits
- Share Acquisition: GameStop CEO Ryan Cohen purchased 500,000 shares on January 20 at a weighted average price of $21.6, bringing the total shares bought this week to 1 million and increasing his stake to 9.3%, reflecting his confidence in the company's future.
- Market Reaction: Following Cohen's announcement of the stock purchase, GameStop's shares rallied 2% in after-hours trading, indicating a positive investor response to his increased stake, which may enhance market optimism about the company's prospects.
- Incentive Structure: Cohen has been granted performance-based stock options for 171.5 million shares at a strike price of $20.66, which will fully vest only if the company achieves a market capitalization of $100 billion and $10 billion in cumulative earnings, aligning management incentives with shareholder interests.
- Investor Sentiment: While retail sentiment on Stocktwits remained 'bullish' over the past 24 hours, message volume surged from 'normal' to 'high', indicating heightened interest in Cohen's purchases, although some users expressed that the market may be growing bored with stock purchase news.
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.
