Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Meme stock Bed Bath & Beyond soars after investor Ryan Cohen's latest bets

Stock Markets Aug 17, 2022 04:44
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Signage is seen at a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly/File Photo
 
BBBY
+1.25%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Medha Singh and Bansari Mayur Kamdar

(Reuters) -Shares of Bed Bath & Beyond Inc (NASDAQ:BBBY) surged 60% to a near five-month high in volatile trading on Tuesday, as retail investors flocked to the stock after a filing revealed activist investor Ryan Cohen's latest bet on the home goods retailer.

The stock rose as much as 78.8% to $28.60 during the session and trading was halted multiple times for volatility.

Cohen's investment vehicle RC Ventures, which is the second largest investor in the company and has added three independent directors to its board, bought call options expiring in January 2023 on 1.67 million shares with a strike price ranging from $60 to $80.

An option gives the buyer the right to buy or sell a security at a given price on a given date. Buying a call option is essentially betting the underlying asset will rise in price.

"You see his name (Cohen) associated and it gets the buzz going. So right now social media buzz is flying around Bed Bath and Beyond and it is spilling over other stocks as well," said Dennis Dick, retail trader at Triple D Trading.

The home furnishing company's shares were the most traded on brokerage Fidelity's platform, indicating interest from retail investors.

About 300 million shares changed hands by 2:30 p.m. ET, far outpacing the stock's 30-day moving average volume of nearly 29 million.

Trading in Bed Bath & Beyond, which has 50.7% of its public free float in short position, has triggered a short squeeze signal, according to analytics firm Ortex.

The stock is up 440% so far this month in a rally that is evocative of eye-watering gains in shares of GameStop (NYSE:GME) and AMC Entertainment early last year that hurt hedge funds that had bet against the stock.

Other highly shorted stocks, meal-kit delivery firm Blue Apron, sports TV streaming co FuboTV (NYSE:FUBO), GameStop and barbecue grill maker Weber Inc jumped between 8% and 53%.

Bed Bath & Beyond opened lower on Tuesday after B. Riley downgraded the stock to "sell", saying the shares were trading at "unrealistic valuations."

Meme stock Bed Bath & Beyond soars after investor Ryan Cohen's latest bets
 

Related Articles

Leapmotor Debuts on Hong Kong Exchange With 41.6% Dive
Leapmotor Debuts on Hong Kong Exchange With 41.6% Dive By Investing.com - Sep 29, 2022

By Michael Elkins Chinese electric vehicle manufacturer Leapmotor Technology (HK:9863) suffered through the Hong Kong exchange’s worst trading debut so far this year, plunging more...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email