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

Asset management company BlackRock Inc BLK is raising the stakes in video game retailer GameStop Corporation 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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