BBBY gains 140% in a month as short sellers lose millions in August

BBBY gains 140% in a month as short sellers lose millions in August
2 months ago
2 mins read

Bed Bath & Beyond Inc. (NASDAQ: BBBY) skyrocketed over 30% in premarket trading on Monday, August 8, extending the gains the shares made for the ninth consecutive day, gaining over 75% during that stretch. 

With the return of meme trading, one of the initial darlings of retail investors is rising again; at the time of writing, the stock is up 140% over the past month. Shares are still below their meme glory levels from a year ago, with the 52-week trading range for BBBY oscillating between $4.39 to $30.14.

The stock could still be in short squeeze territory until the high level of short interest surrounding it gets sorted out. At the opening bell, the stock jumped almost 40% gaining $3.26 (39.89%) after seeing an initial 30% climb in the premarket.

For the fundamentals, expectations are for the company to post a loss when it reports earnings sometime in September. As per Ihor Dusaniwsky of S3 Partners, BBBY’s short interest reached 52.80% on August 5, despite short sellers sustaining losses of roughly $90 million in August. 

BBBY premarket data. Source: Nasdaq

BBBY chart and analysis 

Volume is considerably higher in the last couple of days, which is what is usually present during a strong move-up as per the technical analysis. The short-term trend is positive, while the long-term trend is still negative with 93% of all other stocks trading in the markets, performing better in the past year than BBBY.

An important resistance area is located at $17.08, while the support line moved to $8.16.

BBBY 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Additionally, analysts rate the shares a moderate sell, predicting that in the next 12 months, the stock could trade at $3.26, -74.53% lower than the current trading price of $12.80 at the time of publication.

Wall Street analysts’ price targets for BBBY. Source: TipRanks  

How long the meme investors can keep the momentum going is anyone’s guess at this moment; however, less experienced investors and traders should remain vigilant with the shares so as not to pile up losses in a hurry.  

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Dino Kurbegovic

Dino is an investor and technology enthusiast with years of experience in managing complex projects. At Finbold he covers stories on stocks, investing, micro and macroeconomic trends. Also, he’s also building a micro solar power plants in his hometown.