GameStop Stock Climbs Following Insider Buys and Financial Strategy Update

Shares of GameStop Corp. (GME) saw a boost on Thursday, continuing a trend that has pushed the stock up roughly 14% over the last month. Here's what investors are reacting to.

Ryan Cohen, CEO of GameStop (GME) and well-known for his role during the peak of the meme stock era, recently expanded his investment in the company. Cohen bought an additional 500,000 shares, increasing his total ownership to 37.3 million shares — an 8.4% stake in the gaming retailer, according to Bloomberg.

A filing with the SEC dated April 3 revealed that Cohen has pledged close to 60% of his shares — valued around $1 billion — as collateral for a margin loan through Charles Schwab Corp.

GameStop (GME) made changes to its executive policies in March, now allowing insiders to pledge shares as loan collateral. These loans can account for up to 50% of the pledged shares' value. Although the precise amount of the loan hasn't been made public, the limit would be approximately $236 million based on these terms.

Cohen’s recent acquisition appears to signal confidence in the company’s future. The purchase came shortly after GameStop (GME) finalized a $1.5 billion convertible debt deal and announced that it would start holding Bitcoin as a treasury asset. The company adjusted its investment guidelines to permit such holdings — a clear indicator of a broader strategic pivot.

To date, Cohen has invested $107 million into acquiring GameStop (GME) shares. Despite fluctuations in the stock price, Bloomberg estimates he is up more than 800% on that investment.

Alain Attal, a GameStop (GME) board member, also increased his ownership recently. A Form 4 filing with the SEC dated April 10 showed that Attal bought 10,000 shares at a price of $25.75 per share, raising his total direct holdings to 572,464 shares.

In March, GameStop (GME) released quarterly earnings showing mixed results. Revenue for the fourth quarter declined approximately 28% compared to the same period last year. However, net income for the quarter grew to $131.3 million, up from $63.1 million the year before. The company ended the fiscal period with about $4.78 billion in cash, cash equivalents, and marketable securities.

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