The latest extended trading session has brought about the demise of Bed Bath & Beyond. The share prices for the domestic merchandise retailer have tumbled as a major investor has announced selling his stake in the company.
Ryan Cohen to Sell his Stake
As per the sources, Ryan Cohen, an activist investor has decided that he will be selling his stake in Bed Bath & Beyond. The entrepreneur has revealed that he will be parting with all of his stakes.
The selling process for Bed Bath & Beyond’s stake will be carried out by the RC Venture firms of Ryan Cohen.
Form 144 Filed at the US SEC
The information regarding Ryan Cohen’s intentions of selling the stake has been made public by the US SEC.
It was through Form 144 that Ryan Cohen revealed his intentions of selling his stake in Bed Bath & Beyond. The particular form was submitted by RC Ventures to the US Securities and Exchange Commission.
The form includes the number of shares Ryan Cohen has in his portfolio for Bed Bath & Beyond. In the form, it was revealed that a total of 9.45 million shares are in Ryan Cohen’s possession.
Money Cohen can make
According to analysts, if Cohen is able to sell his entire stake at the closing price of Bed Bath & Beyond’s shares on Wednesday, then he will make $60 million.
The closing price for Bed Bath & Beyond’s shares on Wednesday’s trading session was $23.08 per share.
How Much Stake Cohen has in Bed Bath & Beyond
When Cohen was asked about his overall stake in Bed Bath & Beyond, he estimated it to be almost 10% of the company’s overall value.
However, FactSet later confirmed that Cohen’s estimation was not entirely correct as his stake in Bed Bath & Beyond is 11.82%. FactSet shared information surrounding Cohen’s Bed Bath & Beyond stake in late March.
Ryan Cohen’s Letter to Bed Bath & Beyond CEO
It was back in March when Ryan Cohen had written a letter to Mark Tritton, who was the CEO at Bed Bath & Beyond at that time.
Cohen clearly stated in the letter that Bed Bath & Beyond was not showing good signs of reversal in terms of its revenues and earnings.
Instead, the company was struggling badly in dealing with home goods and retails. He added that the company was facing constant declines in sales, which could be greatly attributed to supply chain disruptions.
Bed Bath & Beyond’s Declining Earnings
For the fiscal first quarter, Bed Bath & Beyond reported that it had generated only $108 million in cash. Back in the same quarter of last year, Bed Bath & Beyond had generated $1.1 billion.
Therefore, it is a wise decision by Ryan Cohen to separate his ways from the declining Bed Bath & Beyond. Following Cohen’s announcement, the share prices for Bed Bath & Beyond have suffered a huge low blow.
