TLDR
- Ryan Cohen acquired 500,000 GameStop shares at $21.60 on January 21, following a 500,000 share purchase at $21.12 on January 20.
- His total ownership reached 42.1 million shares, accounting for roughly 9.3% of the company’s outstanding stock.
- Board Director Alain Attal purchased 12,000 shares at $21.63, investing $259,576 on the same day.
- GameStop stock jumped 4.75% in after-hours trading after the disclosure, adding to a 2.8% regular session gain.
- Cohen stated in his filing that CEOs who don’t invest personal funds should be fired.
GameStop shares climbed 4.75% in extended trading Wednesday after Chairman Ryan Cohen revealed another major purchase. The stock had already gained 2.8% during the regular session.
Cohen bought 500,000 shares on January 21 at an average price of $21.60 per share. He used his own money for the open market transaction.
The purchase marked his second straight day of buying. He picked up 500,000 shares at $21.12 each just one day earlier.
A Schedule 13D filing with the Securities and Exchange Commission disclosed both transactions. The documents show Cohen’s continued confidence in the retailer.
Total Holdings Jump to 42.1 Million Shares
The two-day buying spree increased Cohen’s stake to approximately 42.1 million shares. This represents about 9.3% of GameStop’s total outstanding shares.
His holdings consist of 38.3 million directly owned shares. The remaining 3.7 million shares come from warrants received through a dividend distribution.
Cohen has invested roughly $128.2 million in his directly owned position. This amount excludes brokerage commissions and fees.
He maintains sole voting and dispositive power over all shares. The SEC filing confirmed his exclusive control over the holdings.
Pointed Comments on Executive Investment
Cohen made his management philosophy clear in the regulatory filing. He believes CEOs of public companies should buy shares using their personal capital.
The goal is aligning executive interests with shareholder returns. Cohen sees this as a fundamental requirement for leadership.
He took a hard stance on the issue. Executives who refuse to invest their own money “should be terminated,” according to his filing.
Cohen serves as both chairman and CEO of GameStop. His comments reflect his own approach to the dual role.
Director Joins the Buying Activity
Director Alain Attal also made a purchase on January 21. He bought 12,000 shares at a weighted average price of $21.63.
His transaction totaled $259,576. Share prices ranged from $21.56 to $21.65 during his purchase.
Attal now directly owns 596,464 shares following the buy. The timing matched Cohen’s latest transaction perfectly.
GameStop traded at $21.69 with a market cap of $9.73 billion. The stock carries a P/E ratio of 26.24.
Financial data shows the company holds more cash than debt. The current ratio of 10.39 indicates liquid assets exceed short-term obligations by more than ten times.
Daily trading volume averages close to 6 million shares. The stock has posted a 5.08% gain year-to-date.
GameStop announced a performance-based stock option award for Cohen that requires stockholder approval. The compensation package ties directly to market capitalization and profitability milestones. A special meeting will allow shareholders to vote on the proposal.
