Top activist investor Ryan Cohen has prevailed in a shareholder lawsuit. Two former investors in Bed, Bath, and Beyond (BBBY) had accused Cohen of cashing out of the company quickly while it spiraled towards bankruptcy.
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The Bed Bath & Beyond Saga
According to Reuters, regulations require corporate insiders, including large shareholders, to return their profits from short-swing trades executed within a six-month period to the company. However, a Manhattan court ruled that Cohen would not be forced to return his profits from the disposal of his stake in BBBY, as the company’s bankruptcy rendered the two investors’ claims moot.
Back in March 2022, Cohen had picked up a sizable stake in BBBY, pushing for changes at the retailer. However, he abruptly offloaded his entire stake in the company only five months later. Subsequently, BBBY filed for bankruptcy in April 2023.
In the aftermath, Overstock.com acquired the Bed Bath & Beyond brand and related IP. The company later renamed itself Beyond (NYSE:BYON). Its portfolio now includes Overstock, Bed Bath & Beyond, Zulily, and other online brands. Recently, Beyond has gravitated towards an asset-light model and cost reductions. Still, last month, its Q1 net loss per share widened to $1.22 from $0.10 a year ago.
What Is the Price Prediction for BYON Stock?
Not surprisingly, Beyond’s share price has tanked by nearly 83% over the past three years. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average BYON price target of $29.33. This points to a massive 92.7% potential upside in the stock.
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