On the surface, GameStop appears to be doing well, even gathering positive assessments from financial analysts on its prospects for the holidays in a weakened economic market.
But, according to an article on Gamasutra, GameStop Director Leonard Riggio has sold 2.3 million shares of company stock, netting him more than $60 million, and dropping his stake in the company from 6.9 percent to 5.5 percent. Riggio is also founder and board chairman of Barnes & Noble.
"Unless he desperately needs $60 million," it appears that he doesn’t think the stock is going to be performing very well, insider trading firm Form4Oracle co-founder Alex Romayev told financial magazine Barron’s. "He’s got a lot bigger stake in Barnes & Noble. Clearly he thinks selling GameStop is better than selling Barnes & Noble."
Even more interesting was a note at the end of the Gamasutra story:
But Romayev told Barron’s that the last time Riggio made a GameStop shares sale not related to options, he divested just in time to avoid a 62 percent loss.