GameStop Corp. (NYSE:GME) shares rallied in Tuesday’s extended trading after CEO Ryan Cohen disclosed a massive purchase of the stock.
- GME stock is climbing. See the chart and price action here.
Cohen Likes The Stock
According to an SEC filing, Cohen purchased 500,000 additional shares of GameStop at a weighted average price of approximately $21.12 per share.
After Tuesday’s purchase, Cohen’s total stake in the company is 41,582,626 shares, including approximately 3.7 million warrants. He now owns 9.2% of GameStop.
The filing notes that he has spent roughly $117.4 million of his own personal funds to build the position over time.
New Pay Plan
In early January, GameStop announced its board of directors granted Cohen a stock option award that will vest based on specific performance milestones, potentially reaching around $35 billion if the company achieves a market capitalization of $100 billion and a cumulative EBITDA of $10 billion.
Since Cohen joined the board, GameStop’s market cap has surged from $1.3 billion to $9.3 billion, reflecting an increase of around 600%.
The company has also improved its financial health, moving from a net loss of $381.3 million in fiscal 2021 to a net income of $421.8 million over the last four fiscal quarters.
GME Price Action: GameStop shares climbed 3.41% to $21.82 in Tuesday’s extended trading, according to data from Benzinga Pro.
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