(Biz journals) – A New York investor, Senvest Management LLC, has taken a more than 5 percent position in the Grapevine video-game retailer, according to a filing with the U.S. Securities and Exchange Commission.
GameStop shares jumped after the news, climbing more than 4 percent during midday trading.
It’s another larger backer for GameStop (NYSE: GME). RC Ventures, Chewy co-founder’s Ryan Cohen, bolstered its stake in the company, according to a filing last month. In addition, the entrepreneur held some discussions with key folks at the troubled video-game retailer last month, the filing showed. The investor had a nearly 10 percent stake in the company.
GameStop has been under scrutiny amid concerns about its traditional physical retail approach to the market – something that’s been squeezed amid COVID-19. Sales have been sagging, and stores have been closing.
Yet the company revealed a partnership last week with Microsoft. The multi-year agreement with the tech giant advances its strategy to expand its physical and digital video game offerings – while bolstering its internal tech, according to a statement. The deal also came just weeks before the Redmond, Washington-based giant is set to roll out its new Xbox hardware.
After the announcement, shares soared roughly 30 percent in one day – and the stock is now at more than four times its one-year low.
Senvest Management dates back to 1997. The firm “employs a contrarian, value-based investment strategy across more than $1 billion in assets under management,” according to its website.