Bed Bath & Beyond shares plummet after Ryan Cohen confirms stake sale

Shares of Bed Bath & Beyond plunged more than 45% in after-hours trading Thursday after one of the company’s largest shareholders, Ryan Cohen, sold his entire stake in the home-goods retailer.

Cohen’s investment vehicle RC Ventures sells for $9.45 million Bed bath and others A nearly 12 percent stake in the company was between $18.68 and $29.21 on Tuesday and Wednesday, securities filings show. It also sells call options on the stock.

The sale provided a windfall for Cohen, who bought his Bed Bath & Beyond stock at an average price of $15.34 about five months ago.

Cohen hinted that he intends to exit the position after the market closes on Wednesday. That sent Bed Bath & Beyond shares down 19.6% during regular trading hours. Shares fell a further 45.98 percent to $8.43 in after-hours trading.

Troubled home goods retailer shares tumble after weeks of frenzied trading, review meme stock boom dominated the market during the coronavirus pandemic.

Shares in the company rose more than 300% from late June to the close of regular trading on Wednesday — a staggering gain for a retailer that’s extremely cash-strapped.

Cohen disclosed earlier Monday that he is also the co-founder of pet food retailer Chewy, and the stock rose sharply on Tuesday. He revealed that he had bought a lot of call options on Bed Bath & Beyond — derivatives that could provide a windfall if the stock appreciates.

Bed Bath & Beyond said on Thursday it was “working expeditiously” with outside financial advisors to strengthen its balance sheet. The company’s most recent quarterly earnings showed the debt-laden retailer had $108 million in cash, compared with $1.1 billion a year earlier.

Cohen shaken Bed Bath & Beyond added three independent directors and pushed unsuccessfully to sell its baby brand before stepping down.

Bed Bath & Beyond is the second meme Cohen is targeting. He started investing in GameStop through RC in 2020, eventually amassing a 12.9% stake.

He was named to the video game retailer’s board in January, and its shares rose 1,500% in two weeks. Cohen oversaw the C-Suite and board reshuffle at GameStop and became chairman of the company in June.

Cohen isn’t the only Bed Bath & Beyond investor who has made big gains from stock trades. Wednesday, Financial Times revealed A 20-year-old shareholder still in college made about $110 million by selling his stake.

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