Ryan Cohen, a co-founder of pet-supplies retailer Chewy, recently bought more GameStop shares through a limited liability company.
Gabriela Bhaskar/Bloomberg
Ryan Cohen, a big investor and activist in GameStop stock, just bought more shares of the videogame retailer.
GameStop (ticker: GME) shares have tripled this year, lifted by sales of next-generation gaming consoles and the prospect of actions by activists, including Cohen. GameStop’s third-quarter earnings, reported earlier this month, were disappointing. The company also said it plans to sell stock through at-the-market offerings, which could dilute the value of existing shares.
RC Ventures, a limited liability company controlled by Cohen, paid $37 million from Dec. 15 through Dec. 18 for 2.5 million more GameStop shares, at a per share average price of $14.80. According to a regulatory filing, Cohen’s RC Ventures now owns nine million GameStop shares, or 12.9% of the shares.
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Cohen is a co-founder of online pet-supplies retailer Chewy (CHWY), and according to a November filing, he wants GameStop to adopt “the type of world-class infrastructure that was constructed at Chewy, which is worth multiples of GameStop’s current market capitalization.” RC Ventures has already had private conversations with GameStop’s executives and directors.
Through a representative, Cohen declined to comment beyond the filings.
According to S&P Capital IQ, RC Ventures is now GameStop’s second-largest shareholder.
Tigress Financial Partners’ Ivan Feinseth wrote this month that GameStop runs the risk of having “the same fate as Blockbuster Video.”
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at [email protected] and follow @BarronsEdLin.
