GameStop revealed that it is considering asking its shareholders for authorization to increase the share count from 300 million to 1 billion. With this move, GameStop wants a stock split in the form of a dividend. According to an SEC filing, GameStop expects the share count to “provide flexibility for future corporate needs.”
The videogame retailer didn’t mention how many shares it intends to split in the stock if approved at the next annual meeting. If approved, this would be the company’s second stock split since the 2-for-1 on March 19, 2007.
Shares of GameStop have been on a roll in March, gaining as much as 35%. The stock was boosted when chairman Ryan Cohen purchased 100,000 shares, bringing its ownership to 11.9%.
After the news hit the wires, GameStop shares jumped almost 17%. The price went up 12% in the past three months, while USA500 has slipped approx. 5% in the same time span.
Sources: cnbc.com, marketwatch.com