Key Stats for GameStop Stock
- 1- Year Price Change for GameStop stock: -21%
- $GME Share Price as of Jan. 21: $21.69
- 52-Week High: $35.81
- $GME Stock Price Target: $13.50
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What Happened?
GameStop (GME) stock got a boost after CEO and Chairman Ryan Cohen made his second major share purchase in as many days. Cohen bought 500,000 shares at around $21.60 each on Wednesday, right after purchasing another 500,000 shares on Tuesday at $21.12 per share.
These purchases weren’t small change.
- Cohen used his own money to buy roughly $21.4 million worth of GameStop stock over just two days.
- This brings his total ownership to about 42.1 million shares, or roughly 9.3% of the company.
What makes this interesting is Cohen’s explanation in the SEC filing. He stated that it’s “essential” for public company CEOs to buy their own company’s shares with personal funds.
This shows they’re truly aligned with regular stockholders. Cohen went even further, saying that CEOs who don’t do this “should be fired.”
The timing is also notable. These purchases come shortly after GameStop announced a massive performance-based compensation package for Cohen.
Under this plan, he gets stock options only if the company hits ambitious targets: a $100 billion market cap and $10 billion in cumulative EBITDA.
Right now, GameStop has a market cap of just $9.3 billion, meaning the company would need to grow more than tenfold for Cohen to earn anything from the incentive plan.
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What the Market Is Telling Us About GameStop Stock
The market’s positive reaction to Cohen’s share purchases suggests investors view his confidence as a bullish signal. GameStop stock is up 3% in pre-market trading, building on yesterday’s 2.8% gain during the regular session.
Cohen’s willingness to put tens of millions of his own dollars into the stock sends a clear message: he believes in GameStop’s future potential. This is especially meaningful given the company’s recent challenges. GME stock dropped 36% last year as the video game retailer continues navigating a difficult retail environment.
However, investors should keep the bigger picture in mind. While Cohen’s recent bitcoin purchases and expansion into collectibles and trading cards show he’s trying to diversify the business, the company still hasn’t laid out a clear roadmap for how these moves will drive the extraordinary growth needed to justify his compensation targets.
The fact that Cohen is doubling down on his investment at current prices could mean he sees significant upside ahead.
But it could also simply reflect his commitment to leading by example and maintaining credibility with shareholders who’ve stuck with the company through its volatile transformation.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
