GameStop (GME) Stock: Ryan Cohen Snaps Up 500,000 More Shares in Second Daily Purchase

TLDR

Table of Contents

GameStop Chairman Ryan Cohen purchased 500,000 shares at $21.60 on January 21, his second 500,000-share buy in two days.
Cohen now owns approximately 42.1 million shares, equal to 9.3% of GameStop’s total outstanding stock.
Director Alain Attal bought 12,000 shares at $21.63 per share on the same day, spending $259,576.
Shares climbed 4.75% in after-hours trading and 2.8% during regular market hours.
Cohen’s SEC filing stated executives who don’t buy shares with personal funds “should be terminated.”

GameStop stock rose 4.75% in extended trading Wednesday following fresh insider buying. The retailer had already posted a 2.8% gain during regular hours.

GameStop Corp., GME

Chairman Ryan Cohen disclosed purchasing 500,000 shares at an average price of $21.60 each. The January 21 transaction used his personal funds through the open market.

This represented Cohen’s second major purchase in as many days. On January 20, he acquired 500,000 shares at $21.12 per share.

Both purchases appeared in a Schedule 13D filing with the Securities and Exchange Commission. The documents show Cohen continues building his position.

Stake Grows to 9.3%

The consecutive purchases pushed Cohen’s holdings to roughly 42.1 million shares. That translates to about 9.3% of GameStop’s outstanding shares.

His ownership breaks down into two categories. He holds 38.3 million shares directly in his name.

Another 3.7 million shares come from warrants. He received these through a dividend distribution from the company.

Cohen’s direct investment now totals approximately $128.2 million. This figure doesn’t include brokerage fees paid on transactions.

The chairman exercises sole voting and dispositive power over his entire stake. The regulatory filing confirmed his complete control.

CEO Philosophy on Skin in the Game

Cohen used the SEC filing to share his views on executive compensation. He believes public company CEOs must purchase shares with their own capital.

The reasoning focuses on creating alignment between management and shareholders. Without personal investment, executives lack proper incentives according to Cohen.

He didn’t mince words on the topic. Leaders who refuse to invest their own money “should be terminated,” Cohen wrote.

These comments offer a window into his leadership approach. Cohen currently holds both the chairman and CEO positions at GameStop.

Board Member Also Buying

Cohen wasn’t the only insider making purchases. Director Alain Attal bought 12,000 shares on January 21.

Attal paid a weighted average price of $21.63 per share. His transaction cost $259,576 total.

The prices he paid ranged between $21.56 and $21.65. Following the buy, Attal directly owns 596,464 shares.

His purchase timing aligned perfectly with Cohen’s latest acquisition. Both happened on the same trading day.

GameStop shares closed at $21.69. The company carries a market capitalization of $9.73 billion and a P/E ratio of 26.24.

The balance sheet shows cash exceeding debt levels. A current ratio of 10.39 means liquid assets dwarf short-term liabilities by more than ten times.

Average daily volume sits near 6 million shares. The stock has gained 5.08% year-to-date.

The company plans a stockholder vote on a performance-based stock option award for Cohen. This compensation links pay to specific market cap and profitability goals.

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