GameStop (GME) has been explosive.
After pulling back from about $120 to $80, the stock shot up to $138.22 within days.
All after Chairman Ryan Cohen bought 100,000 shares, bringing his holdings to 11.9%. He paid between $96.81 and $108.82 per share. “I put my money where my mouth is,” Cohen tweeted.
With that news, shares of GME are up $15.26 to $138.40 a share.
However, we wouldn’t rush to buy in just yet. The stock is only up on that insider buying news at the moment. The company still needs to dig itself out of a big hole.
Its latest quarter was arguably one of the worst it’s had.
While revenue jumped 6.2% year over year to $2.25 billion, gross margins fell to 16.8% from 21.1% year over year. The company also posted an operating loss of $167 million, and an adjusted loss per share of $1.86. Analysts were looking for a profit of 85 cents. And, for the full-year 2021, GME lost $400 million.
Worse, Q4 is typically the most profitable part of the year for the company.
Sure, the insider buy is great to see, but we wouldn’t touch the stock just yet.
