She did note however, that the recent stock levels could potentially provide the retailer with a long-term lifeline. We believe that BBBY is currently trading at unrealistic valuations.” “BBBY has recently gained the attention of retail traders in the WallStreetBets Reddit forum again, which gained notoriety during the GameStop saga back in January 2021. We have seen the stock increase more than 3x since BBBY reported a very weak Q1 leading to the ousting of CEO at the time Mark Tritton,” Anderson’s note said.
“Our valuation is based on 0.2x our FY23 sales estimate. Here's Why.Īnderson reiterated the company’s existing price target at $5 per share. The stock’s sharp rise is largely attributed to a flurry of retail investors, namely “meme traders,” after Gamestop chairman and activist investor Ryan Cohen made a bet on the home goods retailer.Ĭohen’s investment vehicle RC Ventures, Bed Bath & Beyond’s second-largest investor with three independent directors installed on its board this year, bought call options expiring in January on 1.67 million shares with a strike price ranging from $60 to $80.īankruptcy Looks Like a Real Possibility for Bed Bath & Beyond. At 11:30 a.m., the stock had soared as high as 78.8 percent to $28.60.
Bed Bath & Beyond has been through the wringer in recent months as supply chain headwinds led to hundreds of millions in lost sales-upending plans for a much-needed turnaround and sending CEO Mark Tritton and chief merchandising officer Joe Hartsig packingīut now, the home and bedding retailer is grabbing headlines for completely different reasons after the Nasdaq temporarily halted trading twice Tuesday morning over volatile activity.Īs of 3 p.m.Tuesday Bed Bath & Beyond stock was $21.80, nearly 36.25 percent higher than its $16 price point when trading started at 9:30 a.m.
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