Shares of GameStop (NYSE:GME) have seen a resurgence in price this month, up more than 25% month-t0-date. Furthermore, GME stock is also currently the top-mentioned ticker on Reddit’s r/WallStreetBets, with more than 1,500 mentions in the past 24 hours. However, there is a certain positive catalyst helping to prop up shares of GameStop. So far this month, three insiders have purchased shares of their own company, including chairman Ryan Cohen.
Insiders Are Buying GME Stock
On March 21, director Lawrence Cheng purchased 4,000 shares of GameStop at prices ranging from $93.99 to $96.45. After the purchase, Cheng now owns 8,022 shares of GME stock.
The next day, Chairman Ryan Cohen purchased a whopping 100,000 shares through his investment firm RC Ventures. The shares were purchased at prices ranging from $96.85 to $108.27, which resulted in a transaction value of $10.1 million. After the purchase, Cohen and RC Ventures own 9.1 million shares of GameStop, which equates to an 11.9% ownership stake. Cohen also posted this tweet demonstrating his bullish stance on the company following his purchase:
I put my money where my mouth is
— Ryan Cohen (@ryancohen) March 22, 2022
However, the insider activity doesn’t stop there. Yesterday, Director Alain Attal purchased 1,500 shares at an average price of $129.91. After the purchase, Attal now owns 130,423 shares of GME stock.
In addition to the three insider purchases, a GameStop insider also sold shares this month. On March 22, Chief Accounting Officer Diana Saadeh-Jajeh sold 743 shares at an average price of $125. After the sale, Saadeh-Jajeh still owns 18,825 shares.
Insiders may sell shares for a variety of reasons, whether it be for personal expenses, tax expenses or a loss of faith in the company. However, insiders only buy shares for one reason: they believe the price will go up.
So, how do other insiders feel about the GameStop? During the past 12 months, insiders have purchased 309,412 shares while selling 1,306,139 shares. Combined, insiders have sold a net 996,727 shares during the past year.
Who Else Is Betting Big On GameStop?
Tracking institutional ownership allows retail investors to see what some of the savviest money managers are invested in. According to WhaleWisdom, which tracks all 13F filers, 275 funds own GME stock, an increase of five funds from the previous quarter. Furthermore, 50 funds initiated new positions in GameStop during Q4, while 42 funds closed their positions.
In addition, the institutional put/call ratio lies at 1.31, which means more funds own put options than call options. With that in mind, let’s take a look at the largest institutional shareholders of GameStop:
- RC Ventures: 9.1 million shares, or 11.9% ownership.
- Vanguard Group: 5.93 million shares, or 7.7% ownership.
- BlackRock: 5.19 million shares, or 6.8% ownership.
- Hestia Capital Partners: 4.73 million shares, or 6.2% ownership.
- State Street: 1.65 million shares, or 2.2% ownership.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.