This trade activity should not be overlooked: Bed Bath & Beyond Inc. (BBBY)

Bed Bath & Beyond Inc. (NASDAQ: BBBY) stock jumped 14.71% on Friday to $5.77 against a previous-day closing price of $5.03. With 11.33 million shares changed hands, the volume of the stock remained heavier than its average volume of 8.56 million shares. During the session, the Specialty Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $5.77 whereas the lowest price it dropped to was $4.86. The 52-week range on BBBY shows that it touched its highest point at $30.14 and its lowest point at $4.38 during that stretch. It currently has a 1-year price target of $3.49. Beta for the stock currently stands at 1.92.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BBBY was up-trending over the past week, with a rise of 14.48%, but this was up by 16.10% over a month. Three-month performance dropped to -57.60% while six-month performance fell -62.85%. The stock lost -79.78% in the past year, while it has lost -60.43% so far this year. A look at the trailing 12-month EPS for BBBY yields -9.81 with Next year EPS estimates of -3.42. For the next quarter, that number is -1.56. This implies an EPS growth rate of -269.00% for this year and 74.30% for next year.

Float and Shares Shorts:

At present, 79.61 million BBBY shares are outstanding with a float of 68.44 million shares on hand for trading. On Apr 28, 2022, short shares totaled 20.4 million, which was 25.55% higher than short shares on Mar 30, 2022. In addition to Mr. Mark J. Tritton as the firm’s Pres, CEO & Director, Mr. Gustavo Arnal serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 96.06% of BBBY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.88% of BBBY, in contrast to 30.90% held by mutual funds. Shares owned by individuals account for 11.04%. As the largest shareholder in BBBY with 18.06% of the stake, BlackRock Fund Advisors holds 14,428,259 shares worth 14,428,259. A second-largest stockholder of BBBY, Fidelity Management & Research Co, holds 12,783,833 shares, controlling over 16.00% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in BBBY, holding 9,985,969 shares or 12.50% stake. With a 12.50% stake in BBBY, the Fidelity Low Priced Stock Fund is the largest stakeholder. A total of 9,985,330 shares are owned by the mutual fund manager. The iShares Core S&P Small Cap ETF, which owns about 6.95% of BBBY stock, is the second-largest Mutual Fund holder. It holds 5,551,378 shares valued at 27.59 million. Contrarius ICAV – Global Equity F holds 5.13% of the stake in BBBY, owning 4,101,261 shares worth 20.38 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BBBY since 19 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 8 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BBBY analysts setting a high price target of $7.50 and a low target of $1.00, the average target price over the next 12 months is $3.49. Based on these targets, BBBY could surge 29.98% to reach the target high and fall by -82.67% to reach the target low. Reaching the average price target will result in a decline of -39.51% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BBBY will report FY 2023 earnings on 04/12/2023. Analysts have provided yearly estimates in a range of -$4.79 being high and -$8.64 being low. For BBBY, this leads to a yearly average estimate of -$6.24. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Bed Bath & Beyond Inc. surprised analysts by -$1.44 when it reported -$2.83 EPS against a consensus estimate of -$1.39. The surprise factor in the prior quarter was -$0.95. Based on analyst estimates, the high estimate for the next quarter is -$0.99 and the low estimate is -$2.99. The average estimate for the next quarter is thus -$1.58.

Dividends & Yield:

In terms of dividends, BBBY has a dividend of $0.56 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and BBBY currently yields $0.64. In the past year, BBBY’s dividend yield has been $0.64, but when looking at the stock over the past five years, its yield has been $4.04. Accordingly, BBBY has a current buyback yield of $107.03. This was $107.03 for the TTM, and it was $18.64 for the past five years.

Summary of Insider Activity:

Insiders traded BBBY stock several times over the past three months with 3 Buys and 12 Sells. In these transactions, 70,000 shares were bought while 132,680 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 16 over the past year. The total number of shares bought during that period was 734,272 while 301,155 shares were sold.

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