Insider Buying: GameStop (NYSE:GME) CEO Buys 1,150,680 Shares

Key Points

• GameStop CEO Ryan Cohen bought 1,150,680 shares at an average price of $22.94, investing approximately $26.4 million and increasing his direct ownership to 40.5 million shares.
• Cohen also purchased 1 million GameStop shares earlier in September, bringing his recent stock purchases to roughly $46.8 million.
• GameStop shares traded near $22.82, while analysts maintained a consensus “Hold” rating. The company met quarterly earnings expectations and exceeded revenue estimates, though sales declined 18.7% year over year.

GameStop Corp. (NYSE:GME - Get Free Report) CEO Ryan Cohen purchased 1,150,680 shares of the business's stock in a transaction dated Monday, September 21st. The shares were bought at an average price of $22.94 per share, with a total value of $26,396,599.20. Following the purchase, the chief executive officer directly owned 40,498,522 shares of the company's stock, valued at approximately $929,036,094.68. The trade was a 2.92% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

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

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

GameStop Stock Performance

GME traded up $0.18 during trading on Monday, hitting $22.82. The stock had a trading volume of 9,507,797 shares, compared to its average volume of 7,121,107. The firm has a market capitalization of $11.51 billion, a P/E ratio of 15.01 and a beta of 1.72. The company has a debt-to-equity ratio of 0.68, a quick ratio of 8.07 and a current ratio of 8.72. GameStop Corp. has a twelve month low of $17.79 and a twelve month high of $28.10. The company's 50-day moving average price is $20.03 and its 200 day moving average price is $21.90.

GameStop (NYSE:GME - Get Free Report) last issued its earnings results on Tuesday, September 8th. The company reported $0.27 earnings per share for the quarter, meeting the consensus estimate of $0.27. The business had revenue of $790.20 million for the quarter, compared to the consensus estimate of $756.85 million. GameStop had a net margin of 25.16% and a return on equity of 13.57%. The business's quarterly revenue was down 18.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.31 earnings per share.

Wall Street Analyst Weigh In

GME has been the subject of several recent analyst reports. Wall Street Zen cut GameStop from a "buy" rating to a "hold" rating in a report on Monday, September 7th. Weiss Ratings reiterated a "hold (c)" rating on shares of GameStop in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the stock has a consensus rating of "Hold".

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. WINTON GROUP Ltd purchased a new stake in shares of GameStop during the 2nd quarter worth approximately $5,111,000. Sterling Investment Advisors Ltd. increased its stake in 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 purchased a new position in GameStop in the 2nd quarter valued at approximately $1,866,000. AlphaGrep UK Ltd acquired a new position in GameStop during the second quarter worth $708,000. Finally, Public Employees Retirement System of Ohio acquired a new position in GameStop during the second quarter worth $2,578,000. 29.21% of the stock is owned by hedge funds and other institutional investors.

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.

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