Investor Ryan Cohen has confirmed that it will acquire its entire stake in retailer Bed Bath & Beyond Inc. sold for a profit of more than $58 million, and that its shares plunged for the second consecutive day in after-hours trading on Thursday.
A filing with the Securities and Exchange Commission made public after markets closed Thursday revealed that Cohen has sold his entire Bed Bath & Beyond BBY,
share in the regular trading sessions on Tuesday and Wednesday. An SEC filing made public Wednesday afternoon showed that Cohen’s RC Ventures intended to sell its stake, which it had built up in the first quarter during an activist campaign by Cohen.
Bed Bath & Beyond shares fell 19.6% in Thursday’s regular trading and then fell 45% in after-hours trading.
According to Thursday’s filing, Cohen sold 7.78 million shares at weighted average prices ranging from $18.68 to $29.22, after buying them in the first quarter of the year at weighted average prices ranging from $13.00. 08 to $17.25. The sale of the stock earned him $58.65 million, according to calculations by Dow Jones Market Data Group.
Cohen also dumped the call options he owned in Bed Bath & Beyond, making a profit of nearly $95,000 on those trades, according to Dow Jones Market Data Group.
Cohen is known for founding online pet store Chewy Inc. CHWY,
and became an investor favorite on Reddit after falling into struggling retailer GameStop Inc. GME had jumped,
where he is now chairman. When he jumped into Bed Bath & Beyond stock earlier this year, he sent the company’s board a letter requesting specific changes to the turnaround plan, including a narrower focus and a potential spin-off.
In its own SEC filing Thursday morning, Bed Bath & Beyond offered a statement regarding media questions about Cohen’s filing, stating: “We were pleased to reach a constructive agreement with RC Ventures in March and are committed to maximizing value for all shareholders.”
“We continue to execute on our priorities to improve liquidity, make strategic changes and improve operations to win back customers and drive cost savings; anything to bring our company back to its heritage as the best destination for the home, for all stakeholders,” the statement said. “Specifically, we have been working diligently with outside financial advisors and lenders in recent weeks to strengthen our balance sheet, and the company will provide more information in an update late this month.”
Bed Bath & Beyond has no future presentations listed on its investor relations page. The company last reported quarterly results at the end of June, when it announced a new CEO and bigger-than-expected losses.
Despite the chain’s difficulties, Bed Bath & Beyond’s stock has been rising in recent weeks. It more than tripled in August to Thursday’s close, up 268.8%; it’s up 27% so far, compared to the S&P 500’s SPX,