GameStop (NYSE:GME) stock is in full focus following the disclosure of two insider buys. On Sept. 8, Director Lawrence Cheng purchased 4,768 shares on the open market at an average per share price of $17.64. Three days later, Cheng scooped up another 1,232 shares at an average per share price of $17.71. In total, the two buys were worth about $106,000, bringing Cheng’s total stake to 63,860 shares. 55,088 of the shares are owned by Cheng Capital — which is wholly owned by Cheng — while the remaining 8,772 shares are directly held.
This was Cheng’s third insider purchase of GME stock this year. Cheng purchased 5,000 shares in March and another 5,000 shares in June. According to SecForm4, he has never sold shares of GME on the open market during his role as a director.
These 2 GameStop Directors Just Bought More GME Stock
Director Alain Attal didn’t want to miss out on the fun. On Sept. 8, Attal also purchased 15,000 shares on the open market at an average price of $17.78. Following the transaction, he now directly owns 562,464 shares. Similar to Cheng, Attal has purchased shares twice this year, also buying 10,000 shares in June. Attal bought 1,500 shares in March 2022 as well. SecForm4 notes that Attal has never sold shares of GME on the open market.
Still, the largest GameStop insider purchase this year is attributable to Executive Chairman and 10% owner Ryan Cohen. On June 9, through his investment vehicle RC Ventures, Cohen purchased 443,842 shares worth about $10 million at average prices ranging between $22.24 and $22.90. Following the transaction, Cohen and RC own 36.84 million shares of GME.
The timing of Cheng and Attal’s purchases are interesting, as GameStop recently reported its second-quarter earnings. During the quarter, revenue tallied in at $1.164 billion, up by about 2.5% year-over-year (YOY) compared to $1.136 billion. Cost-cutting is a major focus of the company, which was evident by its net loss of $2.8 million, a dramatic improvement from the loss of $108.7 million a year ago. As of July 29, GameStop had $1.195 billion in cash, cash equivalents and marketable securities.
However, at the end of the day, GameStop participates in a declining industry that has been hampered by the digitalization of video games. Cheng and Attal’s insider purchases show support for Cohen’s leadership, although he still has a lot to prove.
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.
