Bed Bath & Beyond Inc. (NASDAQ: BBBY) is flying in the market this morning. However, the company hasn’t issued any news. So, what’s the deal?
The gains seem to be the result of news that activist investors are pushing for big changes in the company. As you could imagine, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The activist investor news;
- what we’re seeing from BBBY stock as a result; and
- what we’ll be watching for ahead.
BBBY Stock Gains On Activist Investor News
As mentioned above, Bed Bath & Beyond is having an incredibly strong start to the trading session. While the company hasn’t released any news of its own, it is the target of moves being made by activist investors.
According to a report from The Wall Street Journal, three activist investors are currently preparing a proxy fight against the company. According to the reports, the activist investors want BBBY to replace its entire board.
In a report issued late yesterday, the WSJ reported that the activist funds, which currently control approximately 5% of the company’s shares, said that the company has failed to adapt to changes in consumer shopping habits.
In particular, the activist investors believe that the fact that the company has failed to adapt to the shift in tides to online retail. As a result, the activists said that BBBY needs to better curate its merchandise.
With a lack of transparency and inability to tackle the online retail space, the activists believe that it’s time for big changes in management. Bobby Griffin, analyst at Raymond James believes the same. In fact, he recently was quoted as saying:
The most difficult issue facing all investors is the same: management’s irritating lack of transparency.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Bed Bath And Beyond, while the company hasn’t issued any news of its own, the wire is leading to positive opinions.
At the end of the day, activist investors have a knack for pushing companies to make positive changes to improve conditions for all involved. With activists targeting the stock, it only makes sense that investors are excited.
So, it’s not surprising to see that the stock is headed up in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:04), BBBY is trading at $17.45 per share after a gain of $3.58 per share or 25.81% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on BBBY. In particular, we’re interested in following the story surrounding the continued work of activists to bring value back to the company’s investors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!