Insider Trading Report: Bed Bath & Beyond Corp (BBBY)

Gregg Melnick, EVP and Chief Storage Officer at Bed Bath & Beyond Corp (BBBY), recently picked up 7,195 shares. The buy increased his holdings by almost 7.5 percent, and came to a total price of just under $100,000.

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  • This follows up on a cluster of buys from the first week of January, when three EVPs, including the company CFO, and a director also picked up shares, in amounts ranging from $68,900 to $207,150. Despite a few sales in the past year, company insiders have remained bullish.

    Overall, insiders at the company own 1.8 percent of shares.

    The stock is down 46 percent in the past year, as supply chain constraints have cut into the retail outlet’s attempt to get back to a position of strength. Revenues are down 29 percent, but the company has gone from trading at 36 times forward earnings to 10 times forward earnings.

    Action to take: Shares have been prone to some explosive rallies in the past year, and are in a downtrend now. Investors may want to wait for the downtrend to peter out and then look to buy in the weeks ahead. The company has paid a dividend in the past, but doesn’t at present.

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  • Traders may like a long-dated call as a pop higher is likely at some point in the months ahead. The August $20 calls, last going for about $2.75, could explode higher on a big jump in shares, leading to triple-digit returns.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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