GameStop trader Keith Gill, also known as Roaring Kitty, owns 6.6% of Chewy shares, according to an SEC filing. Gill purchased 9,001,000 CHWY shares on June 24, the same amount he owns in GameStop shares. The filing must be submitted within 10 days of an investor owning more than 5% of a security. Traders believe the filing is legitimate, as CHWY shares have already climbed 11% in pre-market trading. Gill's social media activity has previously influenced the price of GameStop shares, and he was accused of securities fraud. He rose to popularity during the GameStop short squeeze in 2021 and has recently made a move towards Chewy shares.
GameStop's share price has risen by more than 40% since Keith Gill, an architect of the meme-stock frenzy in 2021, returned to social media and started posting about the company. Gill, also known as 'Roaring Kitty' or 'DeepF***ingValue,' made a reappearance on Reddit's r/SuperStonk forum and shared a screenshot of his stock portfolio, revealing that he holds five million common shares in GameStop, worth an estimated $115.7 million, as well as 120,000 call options with a strike price of $20 [9de19d41].
The surge in GameStop's share price comes after the company issued $3 billion worth of new shares. This move is seen as a sign of speculative excess in markets, as it dilutes the value of existing shares and can be interpreted as a way for the company to capitalize on its elevated stock price [52a85a71].
Investors and market observers are closely watching the developments around GameStop and other meme stocks, as they continue to generate significant market engagement and volatility. The resurgence of meme stocks, driven in part by Keith Gill's return to social media, highlights the ongoing influence of retail investors and the power of social sentiment in shaping market trends [742691fa].