Why GameStop Is Tumbling 12% Today

Rich Duprey, The Motley Fool
·1-min read
Why GameStop Is Tumbling 12% Today

Shares of GameStop (NYSE: GME) were tumbling 11% in midday trading Friday after director James Wolf sold 810,000 shares of the video game retailer's stock, valued at $21 million. GameStop's stock has been on a tear, more than doubling in the past week alone as short-sellers got caught out by bullish sentiment over higher holiday sales and activist investor RC Ventures' gaining three seats on the board of directors. A better indication of a company's direction comes when insiders buy, because as investing legend Peter Lynch has noted, they tend to do that only because they think the price is going up.