GameStop Insider Lawrence Cheng Is Buying GME Stock. Should You?

Core Insights - GameStop (GME) stock is seeing increased trading volume and price appreciation, driven by retail trader interest and insider buying [1][2] - Lawrence Cheng, a director at GameStop, purchased an additional 5,000 shares at $22.87, bringing his total to 88,000 shares [1] - Michael Burry disclosed his investment in GameStop, emphasizing a long-term value perspective rather than meme-stock sentiment [2] Company Overview - GameStop is the world's largest specialty retailer of video games, headquartered in Grapevine, Texas, and also operates in collectibles and a trade-in program for used video games [4] - The company has a strong capital structure, holding $8.83 billion in cash against total debt of $4.39 billion, despite a forward earnings growth projection of -18% [7] Financial Performance - In the last 12 months, GME has not delivered significant returns, with volatility characteristic of its stock [5] - GameStop's Q3 earnings report showed revenue of $821 million, falling short of Wall Street expectations of $987 million, although net income increased to $77.1 million from $17.4 million the previous year [9]