4 hot insider trades & hedge fund hits: GameStop chair ups stake; shares jump

Here is your Pro Recap of the biggest insider trades and institutional investor headlines you may have missed last week: news out of Riposte Capital and SilverBow, AREX Capital Management and Enhabit, British Columbia Investment Management and Viterra/Bunge merger, and a top brass buy at GameStop.

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GameStop stock jumps as chairman buys more shares

GameStop (NYSE:GME) shares surged more than 10% after regulatory filings showed that executive chairman Ryan Cohen increased his stake in the company.

Cohen acquired an additional 443,842 shares through his investment vehicle, RC Ventures LLC, at prices ranging from $22.25 to $22.91 per share. This purchase, valued at nearly $10.8 million, raised Cohen's ownership in GameStop to 12.10% from the previous 11.95%.

The move followed a recent leadership change at GameStop, which saw the departure of CEO Matt Furlong and Cohen assuming the role of executive chairman. Cohen had gained popularity among meme stock investors for his investments in GameStop and Bed Bath & Beyond (OTC:BBBYQ)

SilverBow’s largest investor calls on exploring strategic alternatives

Riposte Capital, one of the largest shareholders of SilverBow Resources (NYSE:SBOW) sent a letter to SilverBow's Board of Directors to take decisive action to unlock shareholder value and explore strategic alternatives.

According to the letter, the company’s valuation was weighed down by the adoption of a so-called poison pill to defend itself from a hostile bid through dilution.

Riposte Capital, owning approximately 7.5% of the company's outstanding common stock, believes the current market price of approximately $26 per share significantly undervalues SilverBow, which should be valued at around $34-36 per share based on industry comparisons.

The shareholder criticizes the management team for hindering the company's success, citing a stock price that trades at a 40% discount to peers and a low EV/EBITDA multiple. This call for change highlighted the need to address shareholder concerns and consider strategic alternatives.

2 more hedge fund actions

AREX Capital Management, which owns approximately 4.5% of the shares of Enhabit (NYSE:EHAB) issued an open letter to the company’s Board of Directors, stating it needs to explore strategic alternatives given a dramatic share price underperformance since its spin-off, which it believes is largely due to the company’s poor execution and communication.

British Columbia Investment Management (BCI), the 10% owner of Viterra, announced it has signed a definitive agreement in support of the proposed merger between Viterra and Bunge (NYSE:BG). BCI will exchange its ownership for a minority stake in the combined entity, which will be worth about $34B including debt.

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