GameStop Corporation (NYSE:GME) shares are trading higher Wednesday after CEO Ryan Cohen disclosed a large purchase of company stock.

• GameStop stock is among today’s top performers. What’s behind GME gains?

Cohen Adds To GME Stake

According to an SEC filing from late Tuesday, Cohen purchased 500,000 additional shares of GameStop at a weighted average price of approximately $21.12 per share.

Following the purchase, Cohen's total stake in the company increased to 41,582,626 shares, including approximately 3.7 million warrants. The filing shows Cohen now owns about 9.2% of GameStop's outstanding shares.

The disclosure also notes that Cohen has invested roughly $117.4 million of personal capital to build his position in the company over time.

The news comes just weeks after GameStop unveiled a new compensation package for Cohen tied to his ability to drive GameStop to a $100 billion market cap and achieve $10 billion in cumulative performance EBITDA. The GameStop CEO could potentially receive stock options to purchase approximately 171.5 million shares of GameStop at $20.66 per share.

“The award is designed to incentivize Mr. Cohen to achieve extraordinary growth,” the company said.

GameStop Trades Above Key Short-Term Levels

Currently, GameStop is trading 2.2% above its 20-day simple moving average (SMA) and 0.3% above its 50-day SMA, which indicates some short-term strength. However, it remains 5.7% below its 100-day SMA and 10.6% below its 200-day SMA, suggesting that longer-term trends are still under pressure. Over the past 12 months, shares have decreased by 23.19%, and they are currently positioned closer to their 52-week lows than highs.

The RSI is at 46.61, indicating neutral momentum, while the MACD is above its signal line, suggesting a bullish outlook. The combination of these indicators reflects mixed signals, with the neutral RSI indicating a lack of strong momentum in either direction.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for GameStop, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Weak (Score: 11.23/100) — Stock is underperforming the broader market.
• Value: Strong (Score: 71.95/100) — Trading at a fair valuation relative to peers.
• Growth: Bullish (Score: 96.24/100) — Strong growth potential indicated.

The Verdict: GameStop’s Benzinga Edge signal reveals a mixed outlook. While the weak momentum score suggests the stock is struggling to gain traction, the strong growth potential indicates that there may be opportunities for recovery.

GME Price Action: At the time of writing, GameStop shares are trading 2.89% higher at $21.72, according to data from Benzinga Pro.

Image via Shutterstock