Ben-DutkaIt's payday for several of the company's highest-ranking executives.
According to information acquired from Securities & Exchange Commission documents filed on September 19 (as cited by GameSpot ), several head honchos have dumped a lot of their shares.
Executive Chairman Daniel DeMatteo sold 150,000 shares at $43.6306, which netted him $6,544,590, and he still has 230,953 shares remaining. GameStop Director Steven Koonin cashed in 1,800 shares, earning himself $78,538 (he has 17,820 shares left), CFO Robert Lloyd sold off 20,000 shares for a profit of $872,684 (he has 221,040 shares remaining), and VP of International Michael Mauler sold 24,070 shares for a net of $1,050,123 (and he has 167,503 shares left).
As for why they decided to cash in at the same time, we're not entirely sure. GameStop might make a killing this holiday season…
Very odd. Unless they know its going to hit liquidation next year, or the economy fails, that doesn't make much sense.
Lucky though, I wouldn't mind making that much money just by selling something off.
I know what you mean, but not odd at all, believe it or not. You worry when people sell all their shares, for sure.
I do the same thing (much smaller scale, of course. lol) Investors like to keep a balanced portfolio of investments. If one of those rises to a high value, it can make the percentage of your investments unbalanced. So the common thing to do is sell off enough to bring it back to a balanced level and purchase shares in other companies with the profits of the sale.
The reason is because if you put too many eggs in one basket, you can really suffer if that basket gets dropped. If you're balanced, you can handle one or two holdings doing poorly with the assumption that other areas of your portfolio are doing well.
To further Underdog's comment, they are also limited as to when they can sell their stock since they have insider information. Normally they have to announce their intention to sell stock on a specific day long before it actually occurs so they can't utilize their insider information to benefit further.
yeah idk thats a good question or maye they need the cash for something who knows.
happy gaming