Ryan Cohen sold his entire stake, sending shares of Bed Bath and Beyond down 27 percent.

Five months after revealing his stake in Bed Bath & Beyond, activist shareholder Ryan Cohen tapped, prompting a sell-off in the home furnishings retailer’s shares.

The Union, New Jersey-based company fell 27% in late trading after a 20% decline in Thursday’s regular session, after a filing with the U.S. Securities and Exchange Commission confirmed that Cohen’s RC Ventures was withdrawing its position on the company.

RC Ventures sold millions of shares on Tuesday and Wednesday, ranging from $18.68 to $29.21, according to the report. The firm sold thousands of call options amid Wednesday’s rally.

Bed Bath & Beyond shares have been in turmoil this year, with the stock rising sharply in March after RC Ventures first disclosed its 9.8% stake in the retailer and called on it to consider a sale of the company.

Since then, Cohen has agreed to add three independent directors to the retailer’s board and pushed for the departure of CEO Mark Triton. The company announced its resignation minutes before releasing another disappointing earnings report that showed sales fell more than expected in the first quarter. Cohen said the company’s Buybuy Baby unit was undervalued, but no announcement was made about the sale of the property.

A representative for RC Ventures declined to comment.

The stock has become a favorite among retail traders, surging more than 400% from July lows as other investors rallied around so-called meme stocks, pouring their bets on popular social media sites and chat rooms. They bought $58.2 million a day after setting a record $73.2 million, according to data compiled by Wanda Research.

Terrible basics

While retailers are fueling a surge in Bed Bath & Beyond shares, the company’s fundamentals remain weak. Analysts sounded the alarm over liquidity issues and the retailer said it had been working with outside financial advisers and lenders for the past several weeks to strengthen its balance sheet, with plans to restructure by the end of the month.

Wells Fargo analyst Zachary Fadem reiterated his $3 price target, saying “BBBY shares are once again at a wall of economic reality.” A proposed “capital increase” may be prepared to settle the company’s balance sheet.

Wedbush downgraded its stock to neutral Thursday, making it the fourth Wall Street bank in the past two weeks to urge clients to sell the stock. All told, 13 analysts have a sell rating, four have rated the stock a hold, and none recommend a buy. With an average 12-month stock price target of $4.48, brokerage firms expect the stock to decline more than 75% from Thursday’s close.

“From a fundamental perspective, we believe the trends in bed base and beyond are challenging,” Kybanc Capital Markets analyst Bradley Thomas of RC Ventures said in a note after the announcement. It has an underweight price target of $2.

Sign up for Features of luck Email list so you don’t miss our big features, exclusive interviews and investigations.

Related Posts

16 great country houses selling from £450,000 to £6m as seen in Country Life

Our regular roundup of some of the best homes for sale in Britain is a holiday-friendly county home in Sussex. West Sussex – £5,950,000 An unapologetically charming…

Seattle’s housing market is headed for a recession.

What goes up must come down. That seems to be the motto of the U.S. housing market right now, with some of the nation’s most expensive and…

Ant Anstead Is Selling The Laguna Beach ‘Dream’ Home He Bought After Splitting From Christina Hack – See Photos!

There are some big changes for TV personality Anstead. On Wednesday Celebrity IOU: Joyride The co-host has listed his Laguna Beach, CA home for $3.3 million. Garbage…

San Anselmo adopted new rules after the garden was broken

San Anselmo has implemented new rules for community gardens based on how the city’s amenities are managed. The City Council unanimously approved a new ordinance Tuesday to…

Property: A thriving housing market in Dunfermline and West Fife

Dunfermline continues to be the “hub” for first time buyers in East Central Scotland. ESPC’s latest property report figures show that house prices in the city rose…

FOR SALE: Take a look around this stunning Wirral property with covered BBQ area and fireplace

The family home is immaculately finished and close to the beach. This beautiful detached house is for sale at £1,225,000. In the popular Wirral area, Hoylake, a…

Leave a Reply

Your email address will not be published.