Bed Bath & Beyond Stock Pops Ahead Of Strategic Update: What Investors Need To Know

Bed Bath & Beyond Inc BBBY shares are up more than 8% in Monday's premarket trading session. The company is set to provide a strategic update this week after GameStop Corp GME chair Ryan Cohen sold his stake in the struggling retailer earlier this month.

What Happened: Bed Bath & Beyond shares plunged in mid-August after Cohen cut his entire position in the home furnishings retailer less than 6 months after acquiring close to a 10% stake in the company. 

The retailer announced plans to execute on its "priorities to enhance liquidity, make strategic changes and improve operations" following Cohen's departure. 

"Specifically, we have been working expeditiously over the past several weeks with external financial advisors and lenders on strengthening our balance sheet, and the Company will provide more information in an update at the end of this month," Bed Bath & Beyond said.

On Friday, Bed Bath & Beyond announced that the strategic update would take place on Aug. 31 and include a preview of new strategies and upcoming changes.

"We recognize the strong interest in our company and our plans to better serve customers, recapture market share, drive growth and profitability, ensure our vendors are supported, and strengthen our balance sheet. We look forward to providing an update on our business next week, including a preview of strategies and changes being implemented across the enterprise to deliver results for all stakeholders," said Sue Gove, director and interim CEO of Bed Bath & Beyond.

According to a Wall Street Journal report, securities lawyers have suggested that Cohen began selling his stake within minutes or hours of his regulatory filing, which highlights a gray area in the regulatory filing process. 

The regulatory filing that Cohen submitted on the day he began selling included a note that said he hadn’t done any buying or selling in Bed Bath & Beyond during the prior 60 days. SEC rules require investors to update filings to reflect any material changes to what they first disclosed. Cohen reportedly began selling his stake shortly after the ownership disclosure. 

Bed Bath & Beyond reportedly found a financing source to help support its liquidity issues last week. The company's strategic update conference call is set to kick off Wednesday at 8:15 a.m. ET.

BBBY Price Action: Bed Bath & Beyond has a 52-week high of $30.06 and a 52-week low of $4.38.

The stock up by 6.83% at $11.43 at press time, according to Benzinga Pro.

Photo: Mike Mozart from Flickr.