GameStop Corp. (NYSE: GME) experienced a surge in shares during early U.S. trading today. The boost follows the release of regulatory filings revealing that Ryan Cohen, the executive chairman of the video game retailer, has expanded his ownership in the company.
Documents filed with the Securities and Exchange Commission confirm that Cohen acquired an additional 443,842 shares in the Texas-based firm. He made the acquisition through his activist investment vehicle, RC Ventures LLC. The shares were purchased at prices ranging from $22.25 to $22.91 per share.
Based on GameStop’s closing price on Monday, Cohen’s new stake is valued at nearly $10.8 million. This transaction increases his holdings in the company from 11.95% to 12.10%.
Cohen’s purchase comes in the wake of recent changes in GameStop’s leadership. Earlier this month, the company terminated its chief executive officer, Matt Furlong. Simultaneously, Cohen, who had gained popularity among meme stock investors for his stakes in GameStop and now-bankrupt big-box retailer Bed Bath & Beyond, was appointed as the executive chairman.
Although GameStop managed to narrow its net loss in the first quarter, net sales for the three-month period ending in April experienced a 10% decline, reaching $1.24 billion. This decrease reflects the challenges faced by GameStop’s sales as consumers increasingly opt for downloadable console games instead of purchasing physical copies available at the company’s stores.
GameStop GME NYSE: GME Ryan Cohen
