GameStop (GME) Stock Climbs2% After Ryan Cohen's Latest $10.6 Million Share Purchase
Key Takeaways
- •Ryan Cohen bought 450,000 additional GameStop shares at an average price of $23.48 in a $10.6 million transaction, and the stock climbed nearly 2% in after-hours trading following the disclosure.
- •Cohen has purchased 2.6 million shares this month across three buys at successively higher prices, spending roughly $57 million and now holds a stake valued at approximately $961 million.
- •GameStop's quarterly revenue fell 18.7% year over year to $790.2 million, but operating income reached a record $160.2 million and net income rose to $298.7 million from $168.6 million.
- •Collectibles revenue grew 57% year over year to $356.3 million, now accounting for roughly 45% of quarterly revenue, and management raised its fiscal 2026 adjusted EBITDA guidance to above $650 million.
- •GameStop ended the quarter with $5.4 billion in cash and investments against about $2.8 billion in long-term debt, while warrants with a $32 exercise price expire October 30 and analysts maintain an average Hold rating.
GameStop Corp. (NYSE: GME) shares climbed nearly 2% in after-hours trading on Tuesday after a filing disclosed that chief executive Ryan Cohen had purchased another 450,000 shares of the company at an average price of $23.48, a transaction worth $10.6 million, according to a MarketBeat filing alert.
The purchase extends a busy month of open-market buying by GameStop's chief executive. After trading down slightly during Tuesday's regular session and closing at $23.74, the stock reversed course in extended trading once the disclosure became public.
The trade wasn't a one-off. Cohen has now scooped up 2.6 million GameStop shares this month alone, spending close to $57 million of his own money. Tuesday's purchase followed two other buys earlier in September: 1 million shares on September 10 at $20.38, and another 1.15 million shares on September 21 near $22.94.
Open-market purchases by a sitting CEO are disclosed through regulatory filings and are closely watched by investors who track insider activity, since they represent personal funds transacted at live market prices rather than compensation awards. The shape of this's buying stands out as well: three separate purchases, at successively higher price points of $20.38, $22.94, and $23.48.
Following the latest transaction, Cohen now owns 40,948,522 shares of GameStop — a stake valued at roughly $961 million.
Here is a closer look at the financial backdrop behind the move, along with the key catalysts GME investors are tracking.
What the Numbers Show
GameStop's most recent quarter was not perfect on the top line. Revenue dropped to $790.2 million, down from $972.2 million a year earlier, marking an 18.7% year-over-year decline.
But other figures told a different story. Operating income hit $160.2 million, the strongest second quarter in company history. Net income also jumped, rising to $298.7 million from $168.6 million a year ago.
Collectibles revenue was a bright spot too, climbing 57% year over year to $356.3 million. At that size, collectibles now make up roughly 45% of GameStop's quarterly revenue — a share that keeps expanding as the category grows while total sales shrink.
Management raised its full-year outlook as well. GameStop now expects fiscal 2026 adjusted EBITDA to come in above $650 million, up from its earlier forecast of $600 million.
A Cash-Rich Balance Sheet
GameStop closed the quarter with $5.4 billion in cash, marketable securities, digital assets, and related receivables. That total doesn't even include its eBay stake, which is valued separately at $4.9 billion.
The company also retired about $1.4 billion in convertible notes during the period, leaving long-term debt near $2.8 billion at quarter's end. Set against that remaining balance, the company's cash and investments now cover its long-term debt nearly twice over.
The eBay Question Looms
GameStop proposed buying eBay earlier this year for $125 per share. That offer is still unresolved, and the company's existing eBay position — tied to its buyout offer — adds another layer to the story. Any update on that front could move GME shares, and investors are watching closely for signs of where the deal, or the lack of one, might head next.
Warrants Set to Expire October 30
There is also a date circled on the calendar for GME holders. GameStop's outstanding warrants are set to expire on October 30, and they carry a $32 exercise price — the level at which holders can purchase shares. With the stock trading near $23.74, a sizable move higher would be needed for the warrants to carry any value.
If GME stays below $32, the warrants simply expire worthless. If it climbs above that mark, GameStop could pull in extra capital from warrant holders exercising their positions.
Analyst Sentiment Remains Cautious
On the analyst side, sentiment remains measured. Wall Street Zen downgraded the stock from a "buy" rating to a "hold" back on September 7, and MarketBeat data shows GameStop currently carrying an average "Hold" rating.
Institutional ownership sits at 29.21%, with several funds having added new positions during the second quarter.
On the technical side, GME's fifty-day moving average sits at $20.26, while its 200-day average is $21.89. The stock's 52-week range spans from $17.79 to $28.10. At Tuesday's close of $23.74, the stock sits in the upper half of that range.
This article originally appeared on CoinCentral.
