The stock tumbled as much as 48% Tuesday, its worst drop ever, after posting a record one-day advance on Monday amid heavy trading
Bed Bath & Beyond tumbled as much as 48% to $3.07 on Tuesday, its worst drop ever, after posting a record one-day advance on Monday amid heavy trading volume. The stock had briefly triggered a volatility-related trading halt shortly after markets opened in New York on Tuesday.
The retailer, which has been preparing for a Chapter 11 filing, announced an offering of convertible preferred securities and warrants on Monday in a deal that could ultimately raise more than $1 billion. Hudson Bay Capital Management is the anchor investor of the share sale, Bloomberg reported on Tuesday, citing people with knowledge of the matter, adding that Bed Bath & Beyond has lined up enough orders from investors to cover the full offering.
Even if Bed Bath & Beyond completes the transactions, “the additional capital provides the company with just a few more quarters of room to turn around its operations,” Wedbush Securities analyst Seth Basham wrote in a research note on Tuesday. He cut his price target on Bed Bath & Beyond to $0 from $1 and reiterated his underperform rating on the stock. Basham didn’t immediately respond to a request for further comment.
Bed Bath & Beyond has zero buy, two hold and 11 sell ratings after Odeon Capital Group became the latest firm tracked by Bloomberg to downgrade its recommendation on the shares. The average 12-month price target is $1.40, implying more than 50% downside from current levels.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bed Bath & Beyond shares post record gain in heavy trading - BNN BloombergBed Bath & Beyond Inc. climbed 92 per cent on Monday to rack up a record one-day advance as trading volume for the beleaguered home-goods retailer surged.
Read more »
Bed Bath & Beyond seeks to raise US$1-billion to avoid bankruptcyBed Bath & Beyond said in securities filings that if it can’t complete the complex transaction, it would ‘likely file for bankruptcy protection’
Read more »
Bed Bath & Beyond moves to raise $1 billion to avoid bankruptcyThe company said it planned to close an additional 150 stores, on top of 250 previously announced store closures.
Read more »
Bed Bath & Beyond moves to raise $1 billion to avoid bankruptcyThe company said it planned to close an additional 150 stores, on top of 250 previously announced store closures.
Read more »
Adani woes spur protests as stock turmoil turns politicalHundreds of demonstrators from India's main opposition party turned out Monday in India's capital New Delhi and other cities demanding an investigation into allegations of fraud and stock price manipulation by India's second-biggest business group, headed by coal mining tycoon Gautam Adani.
Read more »
Beyond funding, meaningful reform in health care neededCollaboration between the federal government, provinces and territories, across jurisdictional silos, is needed to provide Canadians with the health care they deserve.
Read more »