Three years ago activist investors pushed for changes at Bed Bath & Beyond (NYSE: BBBY) as Mark Tritton became the CEO in late 2019. The goal was simple, the company should have transitioned from a turnaround to an ‘optimize and thrive’ mode. Yet, with the supply chain issues and covid lockdowns, sprinkled with a few earnings misses the stock plunged.
Meanwhile, the interim CEO and two directors disregarded the bad quarter the company posted and bought shares of the company on the open market on July 6. Namely, Gove Sue, Interim CEO, Kirwan Jeff, and Edelman Harriet, Directors, bought 50,000 shares, 10,000 shares, and 10,000 shares, respectively. Further, the total value of these transactions is estimated at $328,500.
Moreover, the company posted revenues of $1.46 billion, missing expectations by $50 million, representing a year-on-year decrease of revenues by -25.1%. Similarly, the earnings per share (EPS) were -$2.83, a miss by $1.44, with the company giving a full-year outlook that reflects cost cuts that need to be made.
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BBBY chart and analysis
Year-to-date (YTD) shares are down 66.42%, with the trading sessions in July an 8% uptick has been noted along with increased trading volumes. All of this did not help the shares close above any of the daily Simple Moving Averages (SMAs) with a possible trading range between $4.30 and $6.
Comparably, analysts rate the shares a moderate sell, predicting that in the next 12 months the average price will reach $4.16, -18.27% lower than the current trading price of $5.09.
Despite the internal share buys that have been noted, the company is currently not in the best position as it is burning through its cash reserves. Other retailers have also been hit this year with supply chain issues, rising prices, and reduced purchasing power of consumers, but BBBY seems to be going through some tough times at the moment.
Finally, extreme volatility experienced in 2022, coupled with recessionary fears may make navigation and existence for the company more challenging.
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