Bed Bath & Beyond Inc. (BBBY) gained in the current market today after Ryan Cohen’s RC ventures announced its 9.8% stake in the company. BBBY values at $26.94, gaining more than 66.49% compared to yesterday’s closing price. The stock closed at $16.18 at the end of the last trading session. The stock volume traded in the previous trading session was around 5.92 million shares. The current market cap of the company is about $1.56 billion.
RC Ventures announced a stake in BBBY
Ryan Cohen’s investment company announced today that they have a 9.8% stake in BBBY and suggested that BBBY should sell their business to a suitable buyer or at least sell its baby products business. RC ventures suggest that BBBY should consider selling the whole company after it announced its stake in the company.
Management Comments on the letter from RC Ventures LLC
In response to the letter from RC Ventures LLC to the Board of Directors of Bed Bath & Beyond Inc. (BBBY) that was received yesterday evening, the company today issued the following statement.
In response to the letter from RC Ventures LLC, management stated that Bed Bath & Beyond’s Board of Directors and management team maintain a consistent dialogue with our shareholders. While we have not previously communicated with RC Ventures, we will carefully review their letter and hope to engage constructively around the ideas they have put forward.
Furthermore, the management stated that the board of directors is committed to acting in the best interests of our shareholders and that the board analyses all avenues for increasing shareholder value regularly. We celebrated the completion of our ambitious multi-year transformation strategy in 2021, which we believe will result in significant long-term shareholder value creation.
BBBY: Key Financials
- In the end, net sales of $1.88 billion fell by 28%, as sales of non-core banners were reduced by 14% due to planned divestitures, and sales of Core1 banners fell by 14% as well.
- BBBY reported a gross margin of 35.6% and an adjusted gross margin of 35.9%.
- BBBY’s net loss was around $276.43 million.
- The quarter’s net loss per diluted share was ($2.78), with special items totaling ($2.53).
Conclusion
Bed Bath & Beyond Inc. (BBBY) skyrocketed after it got a suggestion of selling the whole company by RC Ventures. The company has missed its sales targets in Q3 and has lowered its expectation for fiscal 2021.
