GameStop stocks rose again on Thursday but ended session highs significantly as stocks featured in January’s short squeeze saw another surge in volatility.
The stock closed at just under $ 109 per share, gaining 18.7% for the day after stalling several times during the session. The stock hit nearly $ 185 per share at its high for the day.
The volatile day came after investors plunged into the brick and mortar video game retailer on Wednesday following the fall of CFO Jim Bell, and the stock rose 103.9% before trading ceased.
The company announced Tuesday that Bell would step down on March 26th. Ryan Cohen – GameStop investor and co-founder of online pet food retailer Chewy – and the board of directors reportedly forced the move to expedite the online transition.
GameStop and Cohen have largely remained calm during the volatile stock movement, despite Cohen posting a cryptic tweet Wednesday that included a photo of an ice cream cone.
Jefferies analyst Stephanie Wissink said in a note that the change may be due to GameStop’s talks with an activist investor that preceded the price hike in late January.
“We recognize that leadership changes often follow activist settlements and that Mr. Bell’s exit was mutual and not immediate and does not suggest any disagreement with the company / board of directors,” Wissink said in a note.
The Telsey Advisory Group also said in a note that Bell performed well in that role.
“Since joining GameStop in June 2019, outgoing CFO Jim Bell has played a key role in building the foundation for GameStop’s transformation, including cutting costs, managing inventory, improving capital structure and investing in key areas like digital. We wish Mr. Bell the best for future generations Efforts, “the note reads.
GameStop was at the center of a period of market chaos in late January when retailers, led by the multimillion dollar Reddit thread WallStreetBets, rocketed shares and put a number of hedge funds on Wall Street under pressure with bets on their stock Decline.
However, some analysts have pointed out that there is also an institutional participation in the rising share price.
AMC Entertainment, another stock that got caught up in the retail frenzy, closed Thursday more than 8% down after rising sharply earlier in the day. The stock rose 18% on Wednesday. The cinema chain was supported by New York Governor Andrew Cuomo, who announced that theaters in the city could open with limited capacity next month.
Headphone maker and Reddit favorite Koss Corp rose more than 16% on Thursday but was also well below its highs.
Jesse Pound from CNBC contributed to this story.