Bed Bath & Beyond: 75% Surge Extends Huge Rally

Bed Bath & Beyond's 75% Surge Extends Huge Rally.

Shares of a famous retail company; Bed Bath & Beyond surged to a five-month high on Tuesday as investors continued to drive up the stock price. The stock rocketed higher as investors raced to take back short positions. This is referred to as a ‘short squeeze’ when an increase in the price of an asset forces bearish investors to buy back shares at a higher price in order to limit losses and thus drive demand, which pushes the stock even higher.

A new report by analytics firm Ortex claims that the sudden rise in Bed Bath & Beyond (BBBY) triggered a short squeeze signal, meaning traders needed to buy stock to prevent a fall in share price.

Home furnishing company shares were the most traded on brokerage Fidelity’s platform, indicating interest in their stock from individual investors.

The stock rose from 78.8% to $28.60, and trading was halted multiple times for volatility. About 189 million shares changed hands by midday, more than six times the firm’s 30-day moving average volume.

The stock has skyrocketed 440% this month in a rally reminiscent of the significant gains made early last year in GameStop and AMC Entertainment by hedge funds who were heavily betting against shares of the stock.

After B. Riley downgraded Bed Bath & Beyond stock, the stock opened lower, and shares are now being traded at “unrealistic valuations.” Blue Apron stock saw an 18% move as of 3/29

Business Overview: Bed Bath & Beyond’s share price boost

Bed Bath & Beyond experienced the “Amazon Effect” when Jeff Cohen bought his initial stake. However, with Sue Grove as CEO, the company is beginning its current turnaround. She bought 50,000 shares of BBBY for under $5 and may help transform the company’s revenue and sales.

The fair value of Berkshire Hathaway is $82.05, according to the P/E trends tool integrated into Sentieo’s platform. From Q1 2022 through Q4 2022, revenue for Berkshire Hathaway decreased by 24%. The company has already paid down $1.46 billion and is still drowning in debt and lack of cash.

Ryan Cohen’s role

A billionaire activist investor, Ryan Cohen, bought a considerable stake in the company in March 2022. Ryan Cohen is a Canadian billionaire who helped increase the GME stock price last year by listening to his inner voice and being persistent. He purchased 7,780,000 BBBY shares with 16,701 call options expiring on January 20, 2023, at $60 to $80 strike prices.

Ryan Cohen owns 11.8% of the stock in BBBY, a company on which his compensation is based. BBBY is similar to the GME stock.

Ryan Cohen’s Bed Bath & Beyond Stock & Options Purchases

Here’s a chart listing all of Ryan Cohen’s stock & call options purchases:

DateTransactionNo. of SecuritiesAverage Cost
01/13/2022Purchase of Common Stock1,000,00014.769
01/14/2022Purchase of Common Stock500,00015.286
01/20/2022Purchase of Common Stock300,71714.393
01/21/2022Purchase of Common Stock99,28313.076
01/25/2022Purchase of Common Stock50,00014.91
01/26/2022Purchase of Common Stock200,00015.048
01/27/2022Purchase of Common Stock251,33613.844
01/28/2022Purchase of Common Stock440,98114.489
01/31/2022Purchase of Common Stock44,33316.581
01/31/2022Purchase of Common Stock609,94116.471
02/01/2022Purchase of Common Stock187,96216.976
02/02/2022Purchase of Common Stock156,57417.102
02/04/2022Purchase of Common Stock75,00016.079
02/07/2022Purchase of Common Stock83,87316.278
02/14/2022Purchase of Common Stock70,00015.823
02/16/2022Purchase of Common Stock30,00016.228
02/22/2022Purchase of Common Stock75,00014.031
02/24/2022Purchase of Common Stock367,83315.206
02/24/2022Purchase of Common Stock500,00013.66
02/24/2022Purchase of Common Stock500,00014.577
02/24/2022Purchase of Common Stock300,00013.426
02/25/2022Purchase of Common Stock542,62116.223
02/25/2022Purchase of Common Stock115,00016.114
02/28/2022Purchase of Common Stock500,00016.601
02/28/2022Purchase of January 2023 Call Option ($60 Exercise Price)*4,7570.9324
02/28/2022Purchase of January 2023 Call Option ($75 Exercise Price)*2430.7603
03/01/2022Purchase of January 2023 Call Option ($60 Exercise Price)*5,0001.4693
03/01/2022Purchase of January 2023 Call Option ($60 Exercise Price)*1,5001.4115
03/01/2022Purchase of January 2023 Call Option ($75 Exercise Price)*2011.0803
03/01/2022Purchase of January 2023 Call Option ($80 Exercise Price)*5,0000.7103
03/01/2022Purchase of Common Stock307,34116.9429
03/01/2022Purchase of Common Stock311,66016.7564
03/01/2022Purchase of Common Stock70,54516.68
03/02/2022Purchase of Common Stock69,51617.254
03/03/2022Purchase of Common Stock20,48416.809

60% up in a day? Why is BBBY stock trending?

Ryan Cohen says investing in BBBY and GME is a good idea. Retail investors and the ASX gained confidence in GME, sending it to the moon. BBBY has been gaining massive popularity recently on social media.

GME was a high short interest stock before the stock squeeze, which, in turn, led to attacks by mainstream media pundit Jim Cramer. GME was also bashed during this time and has lost many of its potential buyers since the crash. It had 76 million shares outstanding in January 2021 before the 2022 4-to-1 stock split. BBBY has 75 million shares outstanding as of August 2022.

Despite the similarities, Ryan Cohen has a long-term investment strategy and hasn’t sold a share of BBBY stock or call option.

Shares of Bed Bath & Beyond reached a near five-month high in volatile trading on Tuesday, as retail investors continue to drive up the highly shorted stock. Stock is going up and forces people “bearish” on it to repurchase it, leading to a price increase.

While Citi’s stock price continued to rise, an analytics firm called Ortex issued a short squeeze signal. At the time, BBBY had 50.7% of its shares available for public trading. This triggered a flight from long to short, signaling that the company was about to plummet.

Individual investors are looking to the shares of Fidelity. The shares were traded with a significant volume on the exchange, suggesting demand.

The value of the stock rose significantly on its first trading day, and the company name was halted multiple times because of high volatility. Company shares were repurchased about 19 million times during the market opening session, and 189 billion shares changed hands, far more than six times that of the previous 30-day selling average.

The stock is up 440% this month in a rally evocative of eye-watering gains in shares of GameStop and AMC Entertainment early last year. The increase adversely affects those who bet on the stock’s decline.

Bed Bath & Beyond opened lower after B. Riley downgraded the stock to “sell,” saying the shares are trading at “unrealistic valuations.”

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