Who Owns The Most GameStop Stock?
Stock ownership can, sometimes, be an important piece of an investment thesis. Company strategy could be influenced by key shareholder (or by several of them, as has been the case of movie theater operator AMC), which in turn can impact share price.
GME largest holders
As reported by Yahoo Finance, the company currently has a float of 56 million shares. Of the total, 36% is owned by the public, 45% by institutions and 19% by insiders — the latter includes the company’s officers, directors, and those with access to non-public company information.
RC Ventures, Blackrock and Vanguard are the top holders, with 13%, 9% and 8% of the shares, respectively (see below). The former is the investment firm run by famed company chairman Ryan Cohen (more on him below). The other two own GME with the goal of packaging their shares as ETFs, which in turn end up owned primarily by individual investors.
Ryan Cohen bought his 9 million shares in December 2020, one month before GME’s short squeeze. Since then, Ryan saw his stake rise in value by more than 2,400%. In April 2021, Ryan Cohen was named GameStop‘s chairman, effective in June.
Mr. Cohen’s ownership has been key in GameStop’s turnaround efforts. Since he took over as chairman of the board, he has been vocal in proposing a series of changes to the company’s business model and core strategy.
In addition, some “smart money” appears to be bullish on GME. Among them is legendary quant hedge fund Renaissance Technologies, founded by billionaire Jim Simons, which owns nearly 1% of GameStop’s equity. Some shareholders may find comfort in knowing that their optimism towards the game retailer is shared with highly successful institutional investors.
(Read more from Wall Street Memes: Understanding The Ryan Cohen Factor)
Implications for the stock
Despite the institutional ownership mentioned above, it would not be an oversimplification to say that GME is largely owned by individual investors (either direct ownership or through funds like BlackRock’s iShares Core S&P Mid-Cap ETF) under the leadership of a key activist in Ryan Cohen’s RC Ventures.
Therefore, GameStop does not seem to be at the mercy of a handful of key institutional owners who could dump their positions and create a bearish avalanche – BlackRock’s and Vanguard’s ownership should simply mirror benchmark compositions. The key ownership concentration is precisely RC Ventures.
But in the case of Ryan Cohen, retail investors seem to be comfortable with the chairman’s leadership style and vision for the company.
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)