GME Stock Edges Up 3% After-Hours As CEO Increases Stake In The Retailer
Synopsis
GameStop’s CEO Ryan Cohen disclosed an increased stake of 9.2% in the firm on Tuesday.
- According to a filing with the Securities and Exchange Commission, Cohen purchased an aggregate of 500,000 shares in multiple transactions on January 20.
- The purchase was made at prices ranging from $20.81 to $21.20.
- Earlier this month, Texas-based GameStop announced that its Board of Directors has granted Cohen a performance-based stock option.
Shares of GameStop jumped 3% after-hours on Tuesday after the company’s chairman and CEO disclosed an increased stake of 9.2% in the firm.
Ryan Cohen currently holds over 41.58 million shares of GameStop. According to a filing with the Securities and Exchange Commission, Cohen purchased an aggregate of 500,000 shares in multiple transactions at prices ranging from $20.81 to $21.20 or a weighted average price of $21.12 per share on January 20.
Cohen’s Latest Award
Earlier this month, Texas-based GameStop announced that its Board of Directors has granted Cohen a performance-based stock option. The award, consisting of stock options to purchase 171.5 million shares of the company's class A common stock at a price of $20.66 per share, would fully vest if the company’s market capitalization grows to $100 billion and the company achieved $10 billion in cumulative performance earnings before interest, taxes, depreciation and amortization, it said.
The award does not guarantee Cohen any pay unless the milestones are achieved. It is now subject to shareholder approval in a meeting expected to be held in either March or April 2026.
Cohen joined the company's Board in 2021. While in fiscal year 2021 the electronics retail company reported a net loss of $381.3 million, it reported net income of $421.8 million for the most recent trailing four fiscal quarters.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around GME jumped from ‘bearish’ to ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘normal’ levels.
A Stocktwits user termed the CEO’s share purchase on Tuesday a “buy signal.”
Another opined that the stock should touch $30 on the news.
GME stock has dropped 23% over the past 12 months.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.