Bed Bath & Beyond Inc., (BBBY) stock price is showing extreme weakness after the news of offloading of stocks by a top investor broke out. BBBY’s share price is down almost 40% in pre-market session on Friday, after it was known that Ryan Cohen, a top investor holding a substantial stake in the company through a US Securities and Exchange Commission filing intends to sell his entire stake in the retailer through his firm RC Ventures.
BBBY meme stock price rise of over 400% in recent past had worked exactly how the retail investors wanted. With the upcoming dump, it remains to be seen at what level the BBBY stock settles. The 52-week range of BBBY is $4.38 – $30.14 and the stock closed at $23.08 on Wednesday.
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Ryan Cohen’s RC Ventures in the filing said that it might sell as much as 7.78 million shares of Bed Bath & Beyond, along with some call options.
Earlier, what is called a short squeeze made investors lose over a billion dollars after betting against the most well-known meme stocks this month after the shares soared in value. Bed Bath & Beyond, GameStop, and AMC Entertainment belong to the same league of stocks in the short squeeze category.
Back in June, Bed Bath & Beyond replaced CEO Mark Tritton after the retailer struggled through another quarter of declining sales and posted a steeper loss.
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The pressure from activist investor Ryan Cohen, chairman of GameStop and co-founder of Chewy was also evident. Cohen had called for sweeping changes, criticized top executives’ high pay, and urged the sale or spinoff of the company’s baby gear chain, Buybuy Baby.
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Bed Bath & Beyond Inc. and subsidiaries is an omnichannel retailer that sells a wide assortment of merchandise in the Home, Baby, Beauty and Wellness markets. Additionally, the Company is a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond.