Cohen's $97 Million Gamble: What GameStop's CEO's Buying Spree Reveals

The Latest Trade

GameStop CEO Ryan Cohen bought another $22.8 million in company shares, according to a regulatory filing published October 13. His disclosed purchases since September 10 now total about $97 million across five trades.

Market Reaction

Cohen kept buying even as the price climbed. He paid about $20 per share in his first trade and almost $27 in the latest one, close to the stock’s 52-week high.

Cohen's Stake

The latest trade covered 844,130 shares at $26.75 to $27 each, according to Reuters. Including warrants, Cohen now holds 46.2 million shares, or roughly 9.1% of the company.

Inside Information

However, the GameStop CEO is not buying alone. Directors Lawrence Cheng, James Grube, and Alain Attal also bought shares in September, according to SEC filings.

Analysts' Views

Analysts often read insider buying as a sign that executives consider a stock undervalued.

eBay's Influence

GameStop CEO Ryan Cohen is under pressure to revive a deal with eBay, which was previously rejected. The GameStop CEO is weighing a partnership or joint venture with eBay instead of a full takeover.

Market Outlook

GameStop shares are up about 35% so far this year. Still, the GameStop CEO’s spree raises the stakes of his next eBay move. That matters because dilution is already a sore point for shareholders.

Previous Developments

In August, a debt-for-stock swap added about 55.5 million new shares, roughly 12% of the share count at the time. GameStop’s original eBay offer mixed cash and stock in equal parts. Reviving a deal on those terms would issue even more shares and dilute the stake Cohen keeps building.