Bed Bath & Beyond (NASDAQ:BBBY) Shares Gap Down After Analyst Downgrade

Bed Bath & Beyond Inc. (NASDAQ:BBBY)’s stock price gapped down prior to trading on Thursday after Morgan Stanley downgraded the stock from an equal weight rating to an underweight rating. The stock had previously closed at $14.44, but opened at $14.09. Morgan Stanley now has a $12.00 price target on the stock, down from their previous price target of $18.00. Bed Bath & Beyond shares last traded at $14.22, with a volume of 53,755 shares traded.

Several other brokerages have also recently issued reports on BBBY. Telsey Advisory Group dropped their target price on Bed Bath & Beyond from $35.00 to $28.00 and set a “market perform” rating on the stock in a research report on Monday, September 27th. TheStreet downgraded Bed Bath & Beyond from a “c” rating to a “d+” rating in a research note on Thursday, September 30th. B. Riley began coverage on Bed Bath & Beyond in a research note on Thursday, July 1st. They issued a “buy” rating and a $44.00 price objective on the stock. Credit Suisse Group decreased their price objective on Bed Bath & Beyond from $30.00 to $23.00 and set a “neutral” rating on the stock in a research note on Friday, October 1st. Finally, Loop Capital decreased their price objective on Bed Bath & Beyond from $18.00 to $14.00 and set a “hold” rating on the stock in a research note on Monday. Five equities research analysts have rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $21.31.

A number of institutional investors and hedge funds have recently modified their holdings of BBBY. Morgan Stanley raised its stake in Bed Bath & Beyond by 973.2% during the 2nd quarter. Morgan Stanley now owns 7,023,868 shares of the retailer’s stock valued at $233,824,000 after purchasing an additional 6,369,395 shares during the period. Goldman Sachs Group Inc. increased its stake in Bed Bath & Beyond by 1,114.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,501,433 shares of the retailer’s stock worth $72,916,000 after acquiring an additional 2,295,478 shares during the last quarter. Ardevora Asset Management LLP bought a new stake in Bed Bath & Beyond in the 2nd quarter worth approximately $69,636,000. Contrarius Investment Management Ltd increased its stake in Bed Bath & Beyond by 77.6% in the 2nd quarter. Contrarius Investment Management Ltd now owns 4,392,809 shares of the retailer’s stock worth $146,237,000 after acquiring an additional 1,919,822 shares during the last quarter. Finally, Franklin Resources Inc. bought a new stake in Bed Bath & Beyond in the 2nd quarter worth approximately $63,154,000.

The company has a current ratio of 1.56, a quick ratio of 0.80 and a debt-to-equity ratio of 1.07. The stock has a 50 day simple moving average of $23.90 and a 200-day simple moving average of $26.71. The firm has a market cap of $1.46 billion, a P/E ratio of 19.51 and a beta of 1.82.

Bed Bath & Beyond (NASDAQ:BBBY) last released its quarterly earnings data on Thursday, September 30th. The retailer reported $0.04 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.52 by ($0.48). The firm had revenue of $1.99 billion during the quarter, compared to the consensus estimate of $2.06 billion. Bed Bath & Beyond had a return on equity of 9.10% and a net margin of 1.02%. The business’s revenue was down 26.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.50 EPS. As a group, equities analysts forecast that Bed Bath & Beyond Inc. will post 1.54 earnings per share for the current fiscal year.

About Bed Bath & Beyond (NASDAQ:BBBY)

Bed Bath & Beyond, Inc engages in the operation of retail stores and retails domestics merchandise and home furnishings. Its products include domestic merchandise and home furnishings such as bed linens and related items, bath items, kitchen textiles kitchen and tabletop items, fine tabletop, basic house wares, general home furnishings, and consumables.

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