Ryan Cohen Sells Bed Bath & Beyond Stake, Stock Plunges 42%| MENAFN.COM

Friday, 30 September 2022 02:47 GMT

Ryan Cohen Sells Bed Bath & Beyond Stake, Stock Plunges 42%


(MENAFN- Baystreet.ca) Ryan Cohen Sells Bed Bath & Beyond Stake, Stock Plunges 42%

Shares of Bed Bath & Beyond (BBBY) are down 42% on news that activist investor Ryan Cohen
has sold his entire stake in the retailer.

According to a securities filing Cohen's company RC Ventures dumped all the stock it owned in
Bed Bath & Beyond at prices ranging between $18.68 U.S. and $29.22 U.S. per share. Cohen's
firm also sold its call options in Bed, Bath & Beyond stock.

The after hours decline of 42% adds to a loss of nearly 20% in yesterday's trading session
(August 18).

Cohen, who is the chairman of meme stock GameStop (GME), purchased more than seven
million shares and call options on Bed Bath & Beyond stock earlier this year.

Bed, Bath & Beyond subsequently added board members of Cohen's choosing and pushed out
the company's former chief executive officer (CEO).

Cohen originally purchased his shares of Bed Bath & Beyond at an average price of $15.34
U.S. per share. He therefore made nearly $60 million, before brokerage fees, on his sale this
week of Bed Bath & Beyond common stock.

Shares of Bed Bath & Beyond rocketed higher in recent days due, in large part, to news that
Cohen had taken out call options on the stock with strike prices between $60 and $80,
indicating he expected the share price to rise in coming months.

Shares were up more than 200% in August before they plummeted over the past two days. Bed
Bath & Beyond stock has seen high trading volume this month and become the dominant topic
of conversation on Reddit's WallStreetBets chat forum.

Cohen's stake in Bed, Bath & Beyond was curious given that the retailer is struggling financially.
In June, the company reported that its first-quarter net sales were down 25% from a year ago,
resulting in a net loss of $358 million U.S.

Some analysts and retail investors on WallStreetBets have accused Cohen of executing a
pump-and-dump scheme on Bed, Bath & Beyond's stock.

Before today's downturn, Bed, Bath & Beyond's stock was up 22% this year and trading at
$18.55 U.S. per share.

MENAFN19082022000212011056ID1104725411


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.