TLDR
- GameStop Chairman Ryan Cohen purchased 500,000 shares at a weighted average of $21.12 per share on January 20
- The transaction valued at $10.56 million raised Cohen’s ownership to 9.2% of the company
- Shares jumped 4% in after-hours trading following news of the purchase
- Cohen’s total investment in GameStop now stands at approximately $117.4 million
- The chairman received a performance-based stock option for 171.5 million shares earlier this month
GameStop stock gained 4% in after-hours trading Tuesday after Chairman Ryan Cohen added to his position. The purchase shows ongoing commitment from the company’s leader.
Cohen bought 500,000 shares in open market transactions on January 20. Purchase prices ranged from $20.81 to $21.20 per share. The weighted average came to $21.12.
The total buy amounted to roughly $10.56 million. A Securities and Exchange Commission filing revealed the transaction details.
The chairman now owns 41,582,626 GameStop shares. This equals about 9.2% of the company’s outstanding shares. The position includes 37,847,842 directly owned shares plus 3,734,784 shares from warrants.
Cohen has poured approximately $117.4 million of personal capital into GameStop throughout his involvement. The SEC filing documents his growing investment over time.
Building a Position
Cohen initially entered GameStop in August 2020 with a 9% stake. The timing coincided with the meme stock explosion. He joined the board in 2021 and became Chairman that June.
GameStop elevated him to President and CEO in September 2023. Cohen holds both positions without receiving compensation. His skin in the game comes from share ownership rather than salary.
The company’s valuation tells a growth story. GameStop carried a market cap around $1.3 billion when Cohen joined the board. Current market capitalization stands near $9.45 billion.
This marks a jump of over 600%. The stock touched a $34 billion peak during the 2021 meme frenzy. Shares have dropped 23.2% over the past year despite the progress.
Recent Developments
GameStop generated $421.8 million in net income across the most recent four fiscal quarters. The profitability demonstrates progress in the company’s turnaround efforts.
The board granted Cohen a substantial performance-based stock option in January. The package includes 171.5 million shares priced at $20.66 each.
The option’s potential value reaches $35 billion. Full vesting requires GameStop to hit a $100 billion market cap and $10 billion in cumulative EBITDA.
Cohen’s purchase price near current levels indicates he sees value right now. He didn’t wait for shares to pull back before buying.
The retail gaming sector presents ongoing headwinds. Physical game sales continue declining as consumers shift to digital downloads. Cohen has been steering GameStop through this transition.
Market reaction to the purchase was swift and positive. The after-hours rally reflects investor confidence in Cohen’s direction. Large insider purchases typically signal bullish sentiment.
Ownership Structure
Cohen’s stake combines multiple components. Direct share ownership forms the foundation. Warrants from a previous dividend distribution add to the total.
His latest buy came at prices reflecting recent trading activity. The purchase window spanned multiple transactions throughout the trading day.
GameStop continues working to sustain its recent profitability. The company has proven it can generate earnings under Cohen’s leadership. Maintaining this performance remains the focus going forward.
The filing shows Cohen’s conviction in GameStop’s prospects. Executives who invest their own money alongside shareholders send a powerful message about future expectations.
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