GME Shares Climb After Hours As CEO Buys 1M Shares This Week

• The CEO and chairman purchased 500,000 shares on Jan 20 as well, taking the total number of shares purchased this week to 1 million.
• Cohen now has an increased stake of 9.3% in the company representing over 42.08 million shares.
• As per the filing, Cohen is of the opinion that CEOs of any public company must purchase shares of the company in the open market with their own personal funds to further strengthen alignment with shareholders.

Shares of GameStop (GME) rallied 2% after hours on the heels of its CEO Ryan Cohen purchasing 500,000 shares of the company in the open market.

According to a filing with the Securities and Exchange Commission (SEC), Cohen purchased an aggregate of 500,000 shares on Wednesday at a weighted average price of $21.6 per share in multiple transactions at prices ranging from $21.55 to $21.61.

Cohen now has an increased stake of 9.3% in the company representing over 42.08 million shares.

The CEO and chairman purchased 500,000 shares on Jan 20 as well, taking the total number of shares purchased this week to 1 million. As per the filing, Cohen is of the opinion that CEOs of any public company must purchase shares of the company in the open market with their own personal funds to further strengthen alignment with shareholders. Any CEO who fails to do so must be fired, as per the GameStop chief.

Cohen’s Latest Award

Earlier this month, Texas-based GameStop announced that its Board of Directors has granted Cohen a performance-based stock option. The award, consisting of stock options to purchase 171.5 million shares of the company's class A common stock at a price of $20.66 per share, would fully vest if the company’s market capitalization grows to $100 billion and the company achieved $10 billion in cumulative performance earnings before interest, taxes, depreciation and amortization, it said.  

The award does not guarantee Cohen any pay unless the milestones are achieved. It is now subject to shareholder approval in a meeting expected to be held in either March or April 2026.

Cohen joined the company's Board in 2021. While in fiscal year 2021 the electronics retail company reported a net loss of $381.3 million, it reported net income of $421.8 million for the most recent trailing four fiscal quarters.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around GME stayed within ‘bullish’ territory over the past 24 hours while message volume jumped from ‘normal’ to ‘high’ levels.

A Stocktwits user wondered whether “something big” is coming.

Another however opined that the market is getting bored of stock purchase news.

GME stock has dropped 21% over the past 12 months. 

Read More: Bumble Chief Product Officer Reportedly Exits Amid Dating Platform’s ‘Return To Growth’ Efforts

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