GameStop Corporation (NYSE:GME) shares are trading higher Wednesday after CEO Ryan Cohen disclosed a large purchase of company stock.
Cohen Adds To GME Stake
According to an SEC filing from late Tuesday, Cohen purchased 500,000 additional shares of GameStop at a weighted average price of approximately $21.12 per share.
Following the purchase, Cohen's total stake in the company increased to 41,582,626 shares, including approximately 3.7 million warrants. The filing shows Cohen now owns about 9.2% of GameStop's outstanding shares.
The disclosure also notes that Cohen has invested roughly $117.4 million of personal capital to build his position in the company over time.
The news comes just weeks after GameStop unveiled a new compensation package for Cohen tied to his ability to drive GameStop to a $100 billion market cap and achieve $10 billion in cumulative performance EBITDA. The GameStop CEO could potentially receive stock options to purchase approximately 171.5 million shares of GameStop at $20.66 per share.
“The award is designed to incentivize Mr. Cohen to achieve extraordinary growth,” the company said.
GameStop Trades Above Key Short-Term Levels
Currently, GameStop is trading 2.2% above its 20-day simple moving average (SMA) and 0.3% above its 50-day SMA, which indicates some short-term strength. However, it remains 5.7% below its 100-day SMA and 10.6% below its 200-day SMA, suggesting that longer-term trends are still under pressure. Over the past 12 months, shares have decreased by 23.19%, and they are currently positioned closer to their 52-week lows than highs.
The RSI is at 46.61, indicating neutral momentum, while the MACD is above its signal line, suggesting a bullish outlook. The combination of these indicators reflects mixed signals, with the neutral RSI indicating a lack of strong momentum in either direction.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for GameStop, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 11.23/100) — Stock is underperforming the broader market.
- Value: Strong (Score: 71.95/100) — Trading at a fair valuation relative to peers.
- Growth: Bullish (Score: 96.24/100) — Strong growth potential indicated.
The Verdict: GameStop’s Benzinga Edge signal reveals a mixed outlook. While the weak momentum score suggests the stock is struggling to gain traction, the strong growth potential indicates that there may be opportunities for recovery.
GME Price Action: At the time of writing, GameStop shares are trading 2.89% higher at $21.72, according to data from Benzinga Pro.
Image via Shutterstock
