GameStop Corp. (NYSE:GME) stock moved lower Friday as traders took profits following a week-long rally driven by insider buying. The pullback ended several days of upward momentum for the video game retailer. The Nasdaq is up 0.56% while the S&P 500 has gained 0.55% and Consumer Discretionary is higher by 0.52%.
Cohen Buys 1.15 Million Shares
GameStop stock surged after Chairman and CEO Ryan Cohen purchased 1,150,680 Class A common shares. An SEC Form 4 filing released Monday shows Cohen bought the stock at a weighted average price of $22.9375 per share, with individual trades ranging between $22.76 and $23.02. The transaction totaled roughly $26.4 million.
The purchase builds on insider activity earlier this month. On Sept. 10, Cohen acquired one million shares at an average price of roughly $20.38, representing a $20.4 million investment. Three GameStop directors—Lawrence Cheng, James Grube and Alain Attal—also purchased stock during the same week in September.
Technical Analysis
From a trend perspective, GME is still holding a constructive posture: at $23.55 it’s trading 11.6% above its 20-day SMA ($21.14) and 6.2% above its 200-day SMA ($22.21), suggesting the intermediate trend has improved even with today’s pullback. The catch is the bigger-picture “death cross” from June (50-day SMA below the 200-day SMA) is still in place, which can keep rallies choppy and prone to sharp givebacks.
Momentum looks better than it did during the prior downswing, with MACD above its signal line and the histogram positive—an everyday read that downside pressure is easing versus the recent baseline. That said, the stock’s recent swing high in July and swing low in August frame a market that’s still working through a wide consolidation rather than a clean, steady uptrend.
- Key Resistance: $25.50 — a nearby pivot/round-number area where rebounds can stall before retesting the 52-week high zone ($28.10)
- Key Support: $21 — a nearby floor that sits close to the low-$21 area where multiple moving averages cluster (20-day SMA/100-day SMA), making it a key “line in the sand” on pullbacks
GME Stock Price Activity: GameStop shares were down 5.82% at $23.57 at the time of publication on Friday, according to Benzinga Pro data.
Photo: Jillian Cain Photography / Shutterstock
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