Cohen Exits BBBY Position—Share Value Almost Halved After Hours

A schedule 13D available on the SEC’s website finally cleared up what is happening with Ryan Cohen’s Bed, Bath and Beyond stake. He and his firm RC Ventures Llc hold 0 shares as of Thursday, August 18th.

Did Cohen Really Sell His BBBY Stake?

Bed, Bath and Beyond is definitely having an exciting summer. While the company has been struggling for a while, the value of its shares jumped by over 300% in the first half of August. This incredible jump can trace its roots to a reveal from March that the GameStop CEO had a 10% stake in the retailer prompting BBBY stock to jump 27%.

This rise was further amplified in this summer’s short-squeeze, which reportedly already caused a $1.6 billion loss to short-sellers. While meme stocks were strong throughout the trading Wednesday, August 17th, a bump in the road appeared in the extended trading session.

A document came out showing that Cohen appeared to be getting rid of his 9 million BBBY shares through RC Ventures Llc which caused a price drop of about 20%. While it was later revealed that Wednesday’s form simply gave the GameStop CEO the right to exit his position, Thursday demonstrated that he acted upon that right. Cohen fully exited his Bed, Bath and Beyond position.

What is Happening With Bed, Bath and Beyond Stock After the Sale?

BBBY shares definitely took a beating on Wednesday but somewhat stabilized throughout Thursday reaching just over $20 at one point and ending the day at $18.55. However, after it was revealed that Cohen indeed sold his entire stake, the prices went into a downward spiral reaching $10.60 around 6 PM.

The news might have affected the other major meme stocks—GME and AMC. While neither of them fell by quite as much, both GME and AMC kept experiencing price drops after the markets closed. AMC closed at $19.40 and was down to $18.56 at 6 PM. GME closed at $37.91 and fell significantly down to $33.93 at 6.

While these drops are certainly as shocking as the previous rise of Bed, Bath and Beyond, the r/WallStreetBets crowd has been quick to point out that the GME meme stock craze wasn’t smooth sailing either. It is worth remembering that while the current BBBY price of $10.60 is far lower than the recent high of $23, it still towers over August 1st’s value of $5.77.

At this point, it is impossible to say whether this news killed the BBBY’s role in the current short-squeeze, or if it will manage to recover.

This article originally appeared on The Tokenist

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