Were Hedge Funds Were Right About BBBY: Shares Sinking On Earnings Miss, Down 11% In Q2

How are hedge funds trading Bed Bath & Beyond Inc. (NASDAQ:BBBY)?

According to Insider Monkey’s database, Chuck Royce‘s Royce & Associates held the largest position in Bed Bath & Beyond Inc. (NASDAQ:BBBY), of 2.7 million shares worth close to $210.4 million, comprising 0.8% of its total 13F portfolio. Second-largest position in the stock was held by First Eagle Investment Management, managed by Jean-Marie Eveillard, which held a $137.1 million position at the end of first quarter. Other hedge funds with similar optimism consist of David Harding’s Winton Capital Management, Cliff Asness‘ AQR Capital Management, Robert Rodriguez and Steven Romick‘s First Pacific Advisors LLC, and Richard Mashaal’s Rima Senvest Management.

Seeing as Bed Bath & Beyond Inc. (NASDAQ:BBBY) has faced declining sentiment from hedge fund managers, we can see that there were quite a few managers who decided to offload their entire stake in the company. Leading the way was Christopher C. Grisanti’s Grisanti Brown & Partners, which sold around 840,000 shares valued at an estimated $64 million by the end of the first quarter. Glenn Russell Dubin’s fund, Highbridge Capital Management, also said goodbye to the stock by selling around 300,000 shares in the first quarter. These transactions are important to note, as total hedge fund interest dropped by 9 funds heading into the second quarter.

To summarize, hedge fund interest heavily declined on the stock, which appears to have accurately predicted its underwhelming results, and insiders also showed no interest in hanging on to their stakes in the company. With Bed Bath & Beyond Inc. (NASDAQ:BBBY) now reporting a miss in its first quarter financial results, we don’t recommend buying the stock at this time.

Disclosure: None