Roaring Kitty's position trails RC Ventures, BlackRock and Vanguard
ByEddie Pan, InvestorPlace Financial News WriterJun 14, 2024, 12:40 pm EDT
- Roaring Kitty now owns 9 million shares of GameStop (GME).
- That places him as the fourth-largest shareholder of the company.
- Roaring Kitty no longer owns calls in GME stock.
Roaring Kitty’s new account update revealed that he had parted way with his prior position of 120,000 GameStop (NYSE:GME) calls expiring on June 21. At the same time, his share ownership increased to 9,001,000 from 5 million with an average per share cost of $23.41.
Roaring Kitty, whose real name is Keith Gill, could have exercised and took delivery of 40,010 of the options, which would have increased his stake by 4,001,000 shares since each options contract represents 100 shares. He could have also sold out of his options without taking delivery of the shares and then used the proceeds to acquire the 4 million shares.
GME shareholders were quick to point out that Gill’s 9 million share stake in GME stock is now equivalent to CEO Ryan Cohen’s stake when he joined the board in early 2021. That has led to speculation that Gill may be seeking a board seat.
GME Stock: Roaring Kitty Is the Fourth-Largest Shareholder
Here are GameStop’s largest shareholders as of the first quarter, updated with Gill’s new stake:
- RC Ventures, an investment vehicle managed by Cohen: 36.84 million shares.
- Vanguard: 25.35 million shares.
- BlackRock (NYSE:BLK): 22.61 million shares.
- Roaring Kitty/Keith Gill: 9,000,100 shares.
- State Street (NYSE:STT): 8.28 million shares.
During his recent livestream, Gill communicated his support for Cohen and the rest of the management team. He believes that GameStop is currently in a “transformation” stage and has acted correctly by cutting costs and raising equity. GameStop has certainly done this, as the company has offered and sold 120 million shares since Gill’s return, raising $3.07 billion of gross proceeds.
Gill also cautioned shareholders to “reserve the right to change your mind about stuff just like I do, don’t follow anyone blindly.”
At the same time, raising equity dilutes shareholders. As of May 24, there were 351.18 million shares outstanding. That figure rose by a significant 21% to 426.21 million shares as of June 11.
While shareholders have experienced dilution, GameStop now has around $4 billion in cash based on its cash, cash equivalents and marketable securities of $1.08 billion as of May 4. That leaves the company in a very flexible position to carry out its business objectives, which could include an 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.comPublishing Guidelines.
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.
Article printed from InvestorPlace Media, https://investorplace.com/2024/06/roaring-kitty-is-now-the-no-4-holder-of-gamestop-gme-stock/.
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