GameStop's stock was skyrocketing higher all day, and some news has broken that is adding to the exuberance surrounding everyone's favorite video game retailer. In an amendment to a SC 13D filing, the company confirmed that RC Ventures bought 100,000 shares of GameStop this morning. Cohen and his company now own 11.9% of shares.
I put my money where my mouth is— Ryan Cohen (@ryancohen) March 22, 2022
According to the 13D filing, Cohen's firm began buying GME shares this morning at $96.81/share and finished buying as the stock jumped to $108.82/share. This is a huge vote of confidence in the company as Cohen has not purchased additional shares in over a year. RC Ventures originally bought into GameStop shares at around $8/share, so today's purchase is an indication that Cohen sees value in the stock at current levels.
Shares of GameStop (GME) were already up 30% on the day, but the news of RC Ventures' purchase has the stock trading even higher. Today's purchase of GME shares comes less than a week after the company reported a huge EPS expectations miss in their Q4 2021 earnings report. The stock initially dropped below $80/share on the news that the company was unable to turn a profit in their holiday quarter, but it appears many savvy investors viewed the dip as a buying opportunity.
GameStop shares actually closed up on the day after their earnings report, and are now trading up on the month. The stock is still down nearly 13% on the year, and is trading well within last year's monstrous price range, but this recent comeback is nothing to scoff at.
Short sellers are the dumb stormtroopers of the investing galaxy— Ryan Cohen (@ryancohen) March 15, 2022
In recent weeks, Ryan Cohen has been taking shots at short sellers. He's also taken another position in struggling retailer Bed, Bath & Beyond. Perhaps he just has some money burning a hole in his pocket?
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.
At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:
Long GameStop via GME shares (partially-hedged with out-of-the-money put options)
Long GameStop via GME call options
Asif Khan posted a new article, Ryan Cohen's RC Ventures bought 100,000 GameStop (GME) shares today
to the moon...