Is GameStop Saying It’s Game Over With This Buyback?
GameStop shares jumped early on Monday after the video game retailer announced its intention to launch a modified Dutch auction tender offer.
GameStop Corp. (NYSE: GME | GME Price Prediction) shares jumped early on Monday after the video game retailer announced its intention to launch a modified Dutch auction tender offer.
Essentially GameStop wants to purchase up to 12 million shares of common stock at a price of not greater than $6.00 and not less than $5.20 per share. The tender offer is expected to commence tomorrow, June 11.
This all comes after GameStop had a very disappointing first quarter. In fact, the stock is down about 60% year to date. In the past 52 weeks, the stock is down 65%.
[nativounit]
George Sherman, GameStop’s CEO commented on the buyback:
While improving our operations and capturing efficiencies in our business to drive returns for our shareholders continues to be the top priority for the new leadership team, we view the purchase of our shares to be financially compelling at this time. We are committed to leveraging the core strengths of our business, implementing longer-term growth initiatives and continuing our disciplined approach to capital allocation.
Shares of GameStop were last seen up about 7% at $5.35, in a 52-week range of $4.71 to $17.27. The consensus price target is $10.09.
[recirclink id=552927]
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
