Ryan Cohen Buys $26.4 Million More GameStop Shares

GameStop shares rose about 4% in Tuesday morning trading after CEO Ryan Cohen disclosed buying 1,150,680 shares for roughly $26.4 million. The purchases took place on Monday, September 21, according to a filing with the Securities and Exchange Commission.

Cohen paid an average of $22.9375 per share, with individual trades ranging from $22.76 to $23.02. After the purchase, he directly held 40.5 million shares; the filing also reports beneficial ownership that includes warrants.

The buy followed another million-share purchase on September 10, at an average price of about $20.38. That makes the latest block larger and bought at a higher average price, though one executive’s purchases do not establish where the stock will trade next.

The disclosure arrived less than two weeks after GameStop reported second-quarter results. Revenue fell to $790.2 million from $972.2 million a year earlier, while operating income increased to $160.2 million from $66.4 million.

Collectibles were a bright spot in those results. GameStop said sales in that category grew 57% year over year to $356.3 million, or 45.1% of quarterly sales.

The company also reported $5.4 billion in cash, cash equivalents, marketable securities and digital assets at August 1. It separately held $4.9 billion in eBay common stock, according to its earnings release.

Investors will be watching whether Cohen makes further purchases and whether GameStop can sustain its improved operating income as sales remain below last year’s level. The stock’s morning gain reflected the purchase disclosure, but the quarterly figures show the company still faces a mixed operating picture.