GameStop shares jumped 4.75% in after-hours trading Wednesday after Chairman Ryan Cohen revealed his latest purchase. The video game retailer also gained 2.8% during the regular session.
Cohen acquired 500,000 shares on January 21 at an average price of $21.60 per share. He used personal funds for the open market transaction according to the Schedule 13D filing with the Securities and Exchange Commission.
This marked Cohen’s second consecutive day of buying. Just 24 hours earlier, he purchased another 500,000 shares at $21.12 each.
The back-to-back purchases increased Cohen’s total holdings to approximately 42.1 million shares. That equals roughly 9.3% of GameStop’s outstanding stock.
His position includes 38.3 million shares owned directly. Another 3.7 million shares come through warrants he received via dividend distribution.
Cohen’s directly owned shares represent an investment of about $128.2 million. This excludes any brokerage commissions paid on the transactions.
The chairman maintains complete voting and dispositive control over all his shares. The regulatory filing confirmed this sole authority.
Cohen didn’t hold back in his SEC filing. He stated that public company CEOs should purchase shares using their own money.
His reasoning centers on aligning executive interests with shareholders. He went as far as saying leaders who don’t invest personally “should be terminated.”
The comments provide insight into Cohen’s management philosophy. He serves as both chairman and CEO of GameStop.
Director Alain Attal joined the buying action on January 21. He purchased 12,000 shares at a weighted average price of $21.63.
Attal’s transaction totaled $259,576. The share prices ranged from $21.56 to $21.65.
After the purchase, Attal owns 596,464 shares directly. The timing matched Cohen’s latest acquisition.
GameStop closed at $21.69 with a market cap of $9.73 billion. The company sports a P/E ratio of 26.24.
The retailer’s balance sheet shows more cash than debt. Its current ratio of 10.39 indicates liquid assets greatly exceed short-term obligations.
Trading volume averages nearly 6 million shares daily. Year-to-date, the stock has climbed 5.08%.
GameStop previously announced a performance-based stock option award for Cohen. This compensation package requires approval from stockholders at an upcoming special meeting. The award ties directly to market capitalization and profitability targets.
The post GameStop (GME) Stock: Cohen Buys Another 500,000 Shares in Back-to-Back Purchases appeared first on CoinCentral.
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