Bed Bath & Beyond Inc.Shares of BBBY rose Thursday morning after multiple filings with the US Securities and Exchange Commission (SEC) showed recent insider buying.
What happened: The largest and most notable insider purchases come from newly appointed interim CEOs Sue Govewho took over last week Markus Tritton, Gov’s recent purchases represent nearly a million bets on the homewares retailer. Here’s a breakdown:
- Gov announced the purchase of 50,000 shares at an average price of $4.61 per share.
- board members Harriet Edelman Disclosure of the purchase of 10,000 shares at an average price of $4.94 per share.
- Jeff KirwanA board member also purchased 10,000 shares at an average price of $4.90 per share.
Gove is trying to instill confidence in the company’s investor base after a potentially disastrous quarter that led to Tritton’s resignation.
ALSO SEE: Ryan Cohen Shades Mark Tritton
Why it matters: Bed Bath & Beyond shares have been in freefall for the past three months, falling about 75% in that time. Several analysts are negative about Bed Bath & Beyond and one even predicts an impending bankruptcy.
In an interview with Yahoo Finance Live last week, Loop Capital Anthony Chukumba Be warned that Bed Bath and Beyond’s days are numbered.
“We can speak of months at this point. We are in the final days,” Chukumba said.
Also Read: ‘Game Over’: Loop Capital Analyst Warns Bed Bath and Beyond Days are Limited
This wasn’t the first time Chukumba warned investors about the struggling retailer. He had expected worse quarterly earnings than most analysts, and he was right. Revenue fell 25% year over year and the company missed earnings estimates by a wide margin.
“Let’s not twist it,” he said. “This company was in big trouble even when things were going well. Now that things are going badly, it’s game over.”
If Chukumba is right, it looks like insider activity is buying the company, at least temporarily, but Gove is banking on itself and a turnaround for Bed Bath & Beyond.
BBBY Price Promotion: Bed Bath & Beyond has a 52-week high of $31.70 and a 52-week low of $4.38.
At press time, shares are up 15.4% to $5.15, according to data from Benzinga Pro.
Photo: Mike Kalasnick from Flickr.