GameStop proposed the stock split in March, saying at the time it was seeking flexibility for future needs.
Photo:
Richard B. Levine/Zuma Press
Updated July 6, 2022 6:40 pm ET
GameStop Corp.
GME -2.33%
declared a 4-for-1 stock split Wednesday, sending shares of the videogame retailer higher in after-hours trading.
The Grapevine, Texas-based company proposed a stock split in March, although it didn’t set the split ratio at that time because it needed shareholders to increase the number of authorized shares. Shareholders approved the increase last month.
GameStop stockholders of record at the close of business on July 18 will receive three additional shares of GameStop Class A common stock for each share of Class A common stock they hold. Trading will begin on a stock-split-adjusted basis on July 22, the company said.
Shares of GameStop climbed 8.9% to $127.90 in after-hours trading Wednesday. The stock finished the day’s regular session with a 2.3% loss. Year to date, the stock has lost more than 20%.
Last year, GameStop was at the center of a monthslong, social-media-fueled trading frenzy. The company overhauled its executive team and board of directors in an effort to reverse years of languishing sales and strategic missteps. The company named two
Amazon.com Inc.
veterans as its chief executive and chief financial officer, and shareholders voted for activist investor
Ryan Cohen
as…..
