GameStop (NYSE:GME) stock is up more than 7% today after investors learned that company chairman Ryan Cohen bought an additional 100,000 shares of the video game retailer. This takes his stake in the company to nearly 12%.
Today’s leg higher also comes after GME stock jumped 30% during the regular trading session on March 22. Shares closed out the day at $123.14.
Investors appear to be reacting positively to news that Cohen purchased 100,000 shares of GameStop through his investment company, RC Ventures. He made these purchases at a cost ranging from $96.85 to $108.28, according to a regulatory filing.
What Happened With GME Stock
Ryan Cohen, an entrepreneur and activist investor, now owns a total of 9.1 million GameStop shares. Investors appear to view his latest purchases as a big vote of confidence in GME.
Year to date, GameStop’s shares had fallen 17% as of yesterday’s market close, bringing the losses over the past six months to 35%.
Cohen, who previously cofounded Chewy (NYSE:CHWY), was tapped by GameStop last year to help the company transform from a brick-and-mortar retail chain to an e-commerce star. Cohen has said he wants GameStop to become the “Amazon of gaming.”
Why It Matters
GameStop is often referred to as the original meme stock. Fueled on by retail investors, GME stock was caught in a massive short squeeze that sent shares up more than 680% throughout 2021. The share price has steadily come down since last summer.
Cohen continues to make headlines for his activist investing style. Two weeks ago, investors learned that Cohen had taken a big stake in Bed Bath & Beyond (NASDAQ:BBBY) and has pushed for a turnaround at that company. In a letter to the company’s board, Cohen said that the houseware retailer continues to struggle to reverse market share losses and navigate ongoing supply chain issues.
What’s Next for GameStop
Ryan Cohen is doubling down on GameStop with his latest share purchase. That’s certainly positive for the video game retailer in the near term. Now investors will be waiting to see what comes next, such as further updates on its NFT marketplace.
On the date of publication, Joel Baglole did not have (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.