GameStop director Leonard Riggio has sold 2.3 million shares in the US retailer, worth $60.2 million, which has lead to some analysts to predict that some tough times are ahead for the company, as the last time Riggio sold shares in 2007 he avoided making a 62% loss.
Hit the jump for a breakdown of this news.
A spokeperson for GameStop told Barrons, that the shares were sold for tax planning reasons. However Alex Romayev from Form4Oracle noted that it looked as if Riggio lacked confidence in the company’s stock. He is also the founder and chairman of Barnes & Noble and holds a 31 per cent stake in the firm valued at around $369.1 million. Alex commented that “unless he desperately needs USD 60 million, he’s got a lot bigger stake in Barnes & Noble. Clearly he thinks selling GameStop is better than selling Barnes & Noble.”
The predicted outlook is postive, as Wedbush Morgan’s Michael Pachter believes the retail chain is well posistioned with price cuts, and improved year-on-year comparisons seeming to suggest the company will bounce back. GameStop shares closed down a fraction yesterday, dropping 0.4 per cent to USD 26.86.