CHWY - Director Larry Cheng Just Bought $103000 Worth of GameStop (GME) Stock
2024-07-10 10:53:15 ET
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Shares of GameStop (NYSE: GME ) stock are moving higher following an insider buy.
On July 8, Director Larry Cheng purchased 4,140 shares of GME stock at an average per share price of $24.85. In total, the transaction was worth $102,879 and brought Cheng’s position to 78,000 shares. Cheng disclosed the purchase yesterday after the market close.
This marks Cheng’s second insider purchase of GameStop in 2024. On April 8, he added 10,000 shares at an average per share price of $11.22. These shares are currently up by over 120%.
During the past year, Cheng’s buys have totaled $321,043. His five-year purchases have totaled $930,287.
Cheng has advocated for retail investing in the past and was also an early investor in Chewy (NYSE: CHWY ), which GameStop CEO Ryan Cohen co-founded.
“I believe we’re headed to a market future where rooms full of investors like this [one] here will be more important and more influential than Goldman Sachs,” said Cheng at a retail investor event last December.
GME Stock: Director Larry Cheng Purchases 4,140 Shares
GameStop’s insiders have purchased $587,743 worth of shares during the past year. These purchases are attributable to Cheng and Director Alain Attal.
Cheng’s buy follows the return of Roaring Kitty, who disclosed an over $200 million position in GME last month. However, Kitty, whose real name is Keith Gill, likely liquidated all or some of his GME due to revealing a 6.6% stake , equivalent to nine million shares, in CHWY.
While Gill is likely out of GameStop, his presence resulted in GME surging higher. GameStop took advantage of this through an at-the-market offering of 75 million shares, resulting in gross proceeds of $2.14 billion. That followed another offering of 45 million shares, raking in gross proceeds of $933.4 million.
With the offerings, GameStop’s cash pile is estimated to be around $4 billion. That leaves a whole lot of opportunity for Cohen to conduct his business plan. It’s also likely the reason behind Cheng’s buy.
For now, Cohen is focused on cutting costs and achieving profitability. However, GameStop is now a wildcard with its large cash balance, leaving the door open for the potential acquisition of another company.
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 .
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.
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