Retail underdog-turned-powerhouse GameStop (NYSE:GME) stock is thrilling investors once again. The video game retailer is making waves today with news that it will soon be virtually debt free.
GameStop is going to soon find itself in a very comfortable position financially. One of the company’s biggest faults going into 2020 was its looming debt problem. Ever since short-sellers bet on GME to fail, however, everything has started to turn around. And now, with a new slate of directors joining its board after a recent mass exodus, Ryan Cohen and his cohorts are looking to eliminate the company’s debt almost entirely.
Cohen is leading a transition from brick-and-mortar game dealership to… whatever GameStop is trying to become. As part of this, the company announced that it would be buying back its 2023 bonds. When the company announced its intentions to repay debts, its senior notes were driven to all-time highs.
While it will be pressed to pay a premium in order to retire the debt early, the company is not fretting. GameStop intends to recoup this money through its $1 billion share offering it announced in March.
The Bottom Line on GME Stock Today
Of course, Reddit has been full of praise after the news. Not even the Coinbase IPO could shake the retail fanatics from GME stock.
The news has seen GME stock gain significantly for the first time in nearly three weeks. GME prices jumped over 23% in the morning. As of right now, the stock is up 13.4%, trading at nearly $160. Especially interesting considering the rapid gains is the unusually low trade volume. While typically trading at an average volume of 43 million shares, Wednesday has only seen a trading volume of 18.6 million shares.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.