GameStop shares rose 3% in postmarket trading after CEO Ryan Cohen reported an insider stock transaction to the US Securities and Exchange Commission. The purchase totaled $26.4 million.

According to the filing, Cohen bought the shares on the open market. The transaction was disclosed in a Form 4 filed with the SEC.

The stock gained in after-hours trading following the news. GameStop has been closely watched by retail investors since the meme-stock surge in 2021.

Cohen, who became CEO in 2023, has been working to turn around the video game retailer. The company has faced declining sales as more gamers download titles digitally. GameStop has been cutting costs and closing underperforming stores.

The insider buy signals confidence in the company's direction. Shares of GameStop are up about 20% year to date.