The new date is August 16, 2022, 04:38pm.
Despite analyst warnings about "unrealistic" valuations, shares of Bed Bath & Beyond surged up to 70% on Tuesday as retail investors from Reddit's WallStreetBets piled into the stock after being encouraged by another big purchase from activist investor and GameStop chairman, Ryan Cohen.
Thanks to a renewed boost from retail investors, the stock has outpaced the market this year.
Bed Bath & Beyond's stock surged by as much as 70% during trading on Tuesday before paring back gains a bit, but still finished the day more than 29% higher to trade at $21 per share.
The company only has 80 million shares outstanding and the stock was halted several times due to the high volume of trading.
Bed Bath & Beyond's stock got a massive boost thanks to an army of retail investors on social media sites.
The share price went up after it was reported that Ryan Cohen, the chairman of GameStop, bought call options on more than 1.5 million Bed Bath & Beyond shares.
Retail investors interpreted the move as a vote of confidence since the strike prices on Cohen's call options ranged between $60 and $80, meaning that he is essentially betting that Bed Bath & Beyond's stock can rise to those levels.
Despite warnings about the company's business prospects from Wall Street analysts, the majority of which maintain a "sell" rating on the stock, shares have surged more than 80% in the last three days.
Bed Bath & Beyond's stock rally on Tuesday came even as another analyst turned bearish with a price target of just $5 per share implying over 75% downside from current price levels Susan Anderson wrote in a note to clients that the stock has gained the attention of retail traders in the Wall Street Bets Reddit forum again. She insists that the stock continues to trade at unrealistic valuations and that the recent rally could provide the company with a long-term lifeline if it raises money from stock sales.
Ryan Cohen disclosed a 10% stake in the company in March. Bed Bath & Beyond CEO Mark Tritton was replaced in June after another round of bad results. The company's stock is up 41% so far this year, compared to a 19% loss for the S&P Retail index and a 10% loss for the S&P 500 index.
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