What's Going On With Gamestop Shares Today?

GameStop Corp. (NYSE:GME) shares traded higher Tuesday continuing a broader upward trend over the past month, during which the stock has gained more than 8%. The movement comes amid renewed investor interest driven by significant insider buying and a shift in the company's financial strategy.

What To Know: CEO Ryan Cohen recently purchased an additional 500,000 shares, bringing his total holdings to 37.3 million, or an 8.4% stake in the company. The transaction was disclosed in a recent SEC filing dated April 3.

Cohen, a central figure in the 2021 meme stock surge, has now pledged nearly 60% of his holdings as collateral for a margin loan through Charles Schwab. The loan terms, based on GameStop’s updated internal policies, allow up to 50% of the total share value to be pledged, which would cap Cohen's loan amount at roughly $236 million. The specific loan size was not revealed.

The timing of Cohen's purchase is notable. It followed the company's completion of a $1.5 billion convertible debt offering and the announcement that Bitcoin would be added to its treasury reserves. GameStop recently updated its investment policy to allow Bitcoin to be held as part of its cash management strategy. These moves reflect a broader effort to reposition the company's balance sheet and financial model.

Cohen's total investment in GameStop has now reached $107 million. Despite recent stock volatility, Bloomberg reports that his holdings have yielded over an 800% return to date. Director Alain Attal also increased his position, acquiring 10,000 shares on April 10 at $25.75, raising his total direct ownership to 572,464 shares, as shown in a separate SEC Form 4 filing.

Although GameStop posted mixed fourth-quarter results in March, the company reported net income of $131.3 million, up from $63.1 million a year earlier. Revenue fell approximately 28% year-over-year, but the company ended the quarter with a strong cash position — approximately $4.78 billion in cash, cash equivalents, and marketable securities.

GME Price Action: Gamestop shares closed up 3.85% at $27.80 at market close Tuesday, according to Benzinga Pro.

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