The disclosure of several Insider purchases, including Sue Gove, the new CEO of Bed Bath & Beyond, led to a surge in the company's shares.
New leadership can help turn the business around, according to investors.
Several company executives bought up tens of thousands of shares, a move viewed by investors as a vote of confidence that the struggling retailer can be saved.
After taking the top job last week, Sue Gove bought 50,000 shares of her own stock.
Gove replaced Mark Tritton, who had been in the role since the beginning of the year, but was ousted by the board on June 29 after yet another quarter of dismal sales results.
The board members bought 10,000 shares at under $5 per share.
While investors cheered the recent moves by Bed Bath & Beyond's leadership, Wall Street analysts have been sounding the alarm that the retailer is in a precarious financial position, with sales in the most recent quarter plunging by 25% from a year ago
The company burned over $500 million in the previous quarter, leaving just over $100 million on its balance sheet.
Bed Bath and Beyond's stock is down over 62% so far this year despite ongoing efforts to improve the business. Tritton spent the last three years trying to turn the business around by closing unprofitable stores. Most Wall Street analysts agree that the strategy hasn't worked for the struggling retailer.
The market value of Bed Bath & Beyond has fallen from $3.1 billion to $400 million in a year.
Ryan Cohen is an activist investor and the founder of pet food company Chewy. Cohen took a 10% stake in Bed Bath & Beyond in March of this year and reached an agreement to expand the company's board.
Bed Bath & Beyond replaced its CEO and fell short on earnings.
Bed Bath and Beyond stock collapsed after earnings.
Bed Bath & Beyond stock increased after a new agreement with a billionaire.
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