Insider Trading Report: Bed Bath & Beyond (BBBY)

Gustavo Arnal, CFO at Bed Bath & Beyond (BBBY) recently picked up 20,000 shares. The buy increased his holdings by 7 percent, and came to a total purchase price of $509,000.

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  • He was joined by a director, Joshua Schechter, who bought 3,000 shares the same day, increasing his stake by 14 percent and paying just over $75,000. This adds to other insider purchases throughout 2020.

    The last insider sales at the company were in early 2019. Overall, insiders own about 6 percent of company shares.

    While Bed Bath & Beyond hasn’t been profitable in the past year, the company has been making strides to cut costs, remove unprofitable items from stores, ramp up e-commerce and otherwise improve profitability.

    That’s allowed shares to rally 438 percent in the past year. Shares spiked to a high near $54 per share in January, and are now down to about half that price at $26.

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  • Action to take: With insiders buying here and the company improving its operations, there’s room for shares to move higher from here, although it may take time to get back to that speculative high from the start of the year. The company has upped its dividend payment to $0.68 annually, for about a 2.6 percent yield right now.

    For traders, the August $30 calls, trading for about $2.65, look like an inexpensive way to bet on a move higher. Traders can likely nab mid-to-high double-digit profits in the coming months if shares continue their recent uptrend.

     

    Disclosure: The author of this article has no positions in the stock mentioned here, and does not intend to make a trade on this company in the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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