Business

Ryan Cohen reveals plan to sell Bed Bath & Beyond stock, leaving meme stock traders behind

Bed Bath & Beyond shares are up more than 15% in after-market trading next Wednesday GameStop President Ryan Cohen revealed his plans to sell his shares in the favorite stock meme.

In a regulatory filing on TuesdayCohen’s operations and venture capital firm, RC Ventures, said it plans to sell its entire 11.8% stake in Bed, Bath & Beyond within the next 90 days.

An investment firm must give notice of a planned sale when it or its affiliates plan to sell more than 5,000 shares, or $50,000 in stock, without being registered through other filings.

Cohen first revealed that he holds a sizable stake in Bed Bath & Beyond through RC Ventures in early March.

Around the time of the initial investment, President of GameStop, and founder of an online pet store Tough, wrote a letter to Bed Bath & Beyond management urging changes at the company. The activist stance eventually led to three Cohen appointees joining the company’s board, and as a result Bed Bath & Beyond shares skyrocketed, eventually reaching a high of more than $27. la at the end of March.

Then stocks fell as investors began to withdraw from riskier assets. But with the stock market rally last month, Bed Bath & Beyond has bounced back.

The retailer’s shares are up more than 360% in the past month amid a resurgent meme stock movement. Bed Bath & Beyond stock has consistently topped the list of most talked about names on Reddit’s Wall Street Betting forum over the past few weeks, according to data from Ape Wisdom.

Bed Bath & Beyond also received a boost from regulatory filings on Monday that showed Cohen bought more than 9.4 million shares of the company through RC Ventures, including more than 1.6 million call options. far away with actual prices from $60. and $80.

Investors profit from call options when the price of the underlying asset increases and with the actual price – the price at which traders can exercise their option – as high as $80, the Investors were under the impression that Cohen was betting that the stock could skyrocket from its Monday closing price of just $16 per share.

Those hopes were dashed on Wednesday with the new regulatory filing.

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