BlackRock Raises Stake In GameStop: Here's How Much Of The Retail Trader Favorite It Now Owns

Asset management company BlackRock Inc (NYSE: BLK) is raising the stakes in video game retailer GameStop Corporation (NYSE: GME). Here’s the latest.

What Happened: GameStop was the center of a stock market craze in 2021 that saw many stocks with high short interest that were popular with retail investors surge higher. The events prompted a David vs. Goliath battle of which Benzinga found itself at the center.

Ryan Cohen took a stake in GameStop in August 2020 and became one of the central figures of pushing for changes and unlocking shareholder value for the struggling retailer. Cohen’s RC Ventures owns 11.9% of GameStop and Cohen now serves as the chairman of the company.

A 13G filing on Friday showed that BlackRock has increased its position in GameStop shares, becoming one of the largest shareholders.

BlackRock now owns 21,977,404 shares of GME, which represents 7.2% ownership of the company. Prior to the new stake, BlackRock owned 6.8% of the company with a stake of 5,194,518 shares.

Related Link: Activist Investor Ryan Cohen Buys Stake In Nordstrom 

Why It’s Important: BlackRock is the largest asset management company in the world. The increased stake could signal to investors that it believes shares of GameStop are undervalued.

BlackRock previously owned a 13% stake in GameStop back in December 2020 and could have made billions of dollars from the surge in GameStop shares in 2021.

GME Price Action: GameStop shares are up 4% to $23.50 on Friday versus a 52-week range of $15.41 to $49.85.

Read Next: How The GameStop Chart Looks Following 2 Year Annniversary Of Historic Short Squeeze 

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