Speculation about the newest Roaring Kitty, aka Keith Gill’s newest stock purchase, has picked up steam since his last post. Many debated that his purchase would include Chewy (NYSE: CHWY) stock, and they proved true.
Namely, on June 24, Roaring Kitty filed a 13G form to purchase 9,001,000 CHWY shares at an average price of $25.35, effectively increasing his ownership to 6.6% of the total outstanding shares.
This acquisition makes Roaring Kitty the third-largest CHWY shareholder overall, just behind Vanguard funds and the largest retail shareholder.
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CHWY stock is already up 28% in the pre-market
As soon as the news was released, Chewy stock experienced a substantial increase of almost 30% in the pre-market trading, raising its price to nearly $35 at the time of writing.
However, as in previous trading sessions, trading may be halted as soon as the U.S. stock markets open.
Nevertheless, this means that if the CHWY stock price holds, Roaring Kitty’s newest purchase has earned him a hefty profit of $87 million in unrealized gains, with a potential for further increase before market opening.
Meanwhile, Roaring Kitty is getting sued for GME stock purchase
Adding to his troubles, Keith Gill faces a new lawsuit in the Eastern District of New York for his alleged role in a pump-and-dump scheme during GameStop’s stock surge in early 2021.
The lawsuit claims that Gill used his social media presence to spread misleading information about GameStop’s financial outlook, encouraging others to buy shares and artificially inflate the stock price.
It alleges that once the price peaked, Gill sold his holdings at a substantial profit, causing other investors to suffer significant financial losses when the stock price subsequently plummeted.
This lawsuit adds to Gill’s existing legal challenges and regulatory scrutiny related to his involvement in the GameStop event, despite his claims of acting on a genuine belief in the company’s potential.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
