GameStop Stock Surges Thursday As CEO Doubles Down On Shares

GameStop Corp (NYSE:GME) shares are trading higher Thursday morning after CEO Ryan Cohen disclosed back-to-back open-market purchases totaling 1 million shares. Regulatory filings show Cohen bought 500,000 GameStop shares late Tuesday at about $21.12 and another 500,000 shares Wednesday at a weighted average price of $21.60.

Here’s what investors need to know.

• GameStop stock is trading at depressed levels. Where is GME stock headed?

New Incentive Plan Targets $100 Billion Valuation

The buying lifts his ownership to roughly 42.1 million shares, or 9.3% of the video-game retailer's outstanding stock, reinforcing his alignment with other shareholders.

The purchases come weeks after GameStop approved a new compensation plan that could grant Cohen options on around 171.5 million additional shares at $20.66 if aggressive performance goals are met.

The award is tied to driving GameStop to a $100 billion market capitalization and $10 billion in cumulative performance EBITDA, making future rewards dependent on long-term profitability.

GameStop runs thousands of specialty retail stores and e-commerce sites focused on video-game hardware, software, accessories and collectibles, while working to streamline its legacy store base.

Meme-Stock Icon ‘Roaring Kitty' Still Offstage

Thursday also marks exactly one year since trading figure Keith Gill, known online as "Roaring Kitty," last posted on social media. Gill helped ignite GameStop's 2021 short-squeeze rally, and his continued silence means the latest strength in GME is coming from the company's CEO rather than new meme-stock hype.

Short-Term Strength Signals Potential Rebound

The stock is currently trading 6.6% above its 20-day simple moving average (SMA) and 4.4% above its 50-day SMA, indicating short-term strength. Over the past 12 months, shares have decreased by 18.82%, and they are currently positioned closer to their 52-week lows than highs.

The RSI is at 54.33, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, the MACD is above its signal line, indicating bullish momentum.

The combination of neutral RSI and bullish MACD suggests mixed momentum.

• Key Resistance: $24.50
• Key Support: $22.00

Earnings Report Could Surprise Wall Street Critics

Investors are looking ahead to the next earnings report on Mar. 24.

• EPS Estimate: 31 cents (Up from 30 cents YoY)
• Revenue Estimate: $1.47 billion (Up from $1.28 billion YoY)
• Valuation: P/E of 24.6x (Indicates fair valuation)

Valuation Insight: While the stock trades at a fair P/E multiple, the consensus and 3% expected earnings growth suggest analysts view this growth as justification for the current valuation.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for GameStop, highlighting its strengths and weaknesses compared to the broader market:

• Value: Strong (Score: 71.84) — Trading at a fair valuation relative to peers.
• Growth: Strong (Score: 96.24) — Indicates significant growth potential.
• Momentum: Weak (Score: 12.04) — Suggests the stock is underperforming in terms of price momentum.

The Verdict: GameStop’s Benzinga Edge signal reveals a mixed outlook. While the strong growth score indicates potential, the weak momentum score suggests caution for investors.

Top ETF Exposure

• AGF US Market Neutral Anti-Beta Fund ETF (NYSE:BTAL): 0.47% Weight
• SPDR S&P Retail ETF (NYSE:XRT): 1.54% Weight
• VanEck Social Sentiment ETF (NYSE:BUZZ): 2.92% Weight

Significance: Because GME carries meaningful weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

GME Shares Gain Thursday

GME Price Action: GameStop shares were up 4.56% at $22.69 at the time of publication on Thursday, according to Benzinga Pro data.

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