According to a press release on GameStop (GME) website, Ryan Cohen, GameStop’s largest shareholder, will be on the board of directors. He is expected to be elected by the shareholders at the annual meeting on June 9. Five other individuals can join Cohen on the governing board, two of whom were Chewy employees.
In pre-trading ahead of the announcement, GameStop stock reached a record high of 6.29% but declined rapidly afterwards, to $ 171.04. GME’s stock traded at $170.26 in the last session, down -4.33% or $7.71. The shares fluctuated between $164.30 and $185.88. There were 10,0 million shares exchanged, lower than its 50-day daily volume of 35.09 million and lower than its year-to-date volume of 42,64 million. Over the past year, the GameStop’s stock increased 5016.7%, and over the last week, the stock dropped -10.30%. Over the last six months, the stock has grown by 1764.84%, and over the last three months, the stock has progressed by 827.34%. Stock returns for this year so far have been 803.72%.
A few years ago, Ryan Cohen founded the online dog food store Chewy, which PetSmart later acquired in 2018. Later, he became one of GameStop’s largest shareholders and bought his first shares in September 2020. A US Securities and Exchange Commission (SEC) report indicates that he owns about 12.9% of the retailer.
By appointing Cohen, GameStop (GME) will be fully controlled by activist investors who had previously wanted to convert the GameStop’s offline stores into Amazon video games before coming to an amicable agreement. In the beginning, Cohen advocated selling off most non-profit stores and switching to the Internet. Eventually, he was appointed board of director and chaired the transformation committee.
GameStop CFO Jim Bell resigned from his position at the end of February. In line with the reorganised company’s principles, Bell’s management method did not correspond to the principles. According to some reposts, Bell’s departure was the result of Cohen’s influence.
On the wall street bets Reddit thread in late November 2020, user ronoron complained about hedge fund Melvin Capital playing against GameStop. In December, the retailer’s shares gained about 20% after the “warming up” efforts of the forum members.
The GameStop (GME) price reached $483 on January 28, so it’s 2500% more than before the month began. Mid-February saw shares of GameStop fall to $ 40.5 before returning to the upside.