Is Bed Bath & Beyond Inc. (BBBY) Stock Options’ Movement Is Linked To Activist Investor Influx

CNBC‘s Scott Wapner has analyzed the “unusual options volume” trading, which were witnessed during last Friday involving the stock of Bed Bath & Beyond Inc. (NASDAQ:BBBY). The program analyzed these “near dated calls in trading” in the options of New Jersey based retailer, which were “expiring today (11th July), next week, and in August” as being driven by anticipation from investors and goes on to comment that, “they’re all obviously expecting a short-term bump to the upside”.

Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Mr Wapner then went on to provide his perspective on the underlying triggers which were fuelling the “unusual options volume” trading in Bed Bath & Beyond Inc.(NASDAQ:BBBY) by juxtaposing its stock performance in the recent past against those of other under pressure retailers like  Family Dollar Stores, Inc.(NYSE:FDO) and PetSmart, Inc.(NASDAQ:PETM) when news broke that  institutional investors have taken strong positions in the underperforming stock.

The CNBC report highlighted that PetSmart, Inc. (NASDAQ:PETM) stock price popped up when Jana Partners LLC disclosed that they had taken a 9.9% stake in company common stock and similar action was seen in the share price of Family Dollar Stores, Inc. (NYSE:FDO) when billionaire investor Carl Icahn had disclosed his stake in the troubled retailer. Scott Wapner went on to underscore that, “the important thing to remember is, all of these names (retailers) have some real distressing things before it”.

In his closing comments about Bed Bath & Beyond Inc. (NASDAQ:BBBY), Scott Wapner said: “the Street hates this name. Revenues are flat.  EPS growth is coming from buyback (of shares)” He also went on to point out that, the company is not initiating “capital expenditure” and concluded that Investors are “trying to figure out who the activist (investor) could be.”

Disclosure: none

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