Bed Bath & Beyond Inc. (BBBY) Is Heating Up. Time to Buy?

How do you judge Wall Street’s opinion of BBBY stock? You could look at price, sure. But that doesn’t tell the whole story. Short sellers are getting bullish about Bed Bath & Beyond Inc. (NASDAQ:BBBY) during the most recent two-week period. Looking at the sentiment indicator for the BBBY stock we see that the short-interest ratio is at 5.449169 while the average analyst recommendations at 3.5 suggests buying these shares. Between December 14 and December 31, the total number of shorted shares amounted to 31.54 million shares. That was 4.16% less than the total of 32.91 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for Bed Bath & Beyond Inc. at the December 31st settlement jumped to 5,788,227, as compared to 4,814,657 at the December 14th report. That brought days to cover 20.28% down from the 6.835715 days to cover recorded at the prior short interest data release.

Investors will get their next glimpse of BBBY’s Q4 earnings on April 12. Analysts are forecasting revenue to climb 2.9 percent to $3.04B in the next fiscal quarter, while earnings are seen soaring by nearly -61.36 percent to $0.17 per share. History has shown that shares in Bed Bath & Beyond Inc. have gone down on 18 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.36 per share, worse than the $0.5, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.03B, worse than the $3.04B analysts expected. Earnings are estimated to increase by -31.9 percent this year, -11.99 percent next year and continue to increase by 0 percent annually for the next 5 years.

Bed Bath & Beyond Inc. (BBBY) will probably climb -6.76 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $16-month high price target. This represents a whopping 5.06 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $13, which represents a return potential of -14.64 percent when compared to the closing price of the stock of $15.23 on Friday, January 11. The lowest price target for the stock is $9.4 — slightly more than -38.28 percent from BBBY’s current share price.

The stock is currently hovering around the first support level of $14.32. Below this, the next support is placed in the zone of $13.42. Till the time, the BBBY stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 71.76 on daily chart, which may remain a cause for concern. If the price breaks below $13.42 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $15.85 mark may result into a pull-back move towards $16.48 level.

On 11th of January, Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares ended higher after a volatile session. The shares accumulated 0.94 points or 6.58 percent at $15.23 with a heavy trade volume of 26.441 million shares. After opening the session at $14.14, the shares went as high as $15.57 and as low as $14.04, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.04 billion and now has 133.81 million shares outstanding. Bed Bath & Beyond Inc. (BBBY) stock has gained 23.62 percent of market value in 21 trading days.

BBBY stock has a trailing 3-year beta of 0.94, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.34 a share in the trailing twelve months. The stock’s value has surged 34.54 percent year to date (YTD) against a decline of -28.53 percent in 12 month’s time. The company’s shares still trade -36.75 percent away from its 1-year high of $24.08 and 45.6 percent up from 52-week low of $10.46. The average consensus rating on the company is 3.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of Bed Bath & Beyond Inc. (BBBY) are trading at a P/E ratio of 4.75 times earnings reported for the past 12 months. The industry BBBY operates in has an average P/E of 24.76. Its P/E ratio went as low as 7.01X and as high as 14.73 over the 5-year span. Further, it is sporting a 0.16 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.8. 34.5 percent is the gross profit margin for Bed Bath & Beyond Inc. and operating margin sits at 4.4 percent. Along with this, the net profit margin is 2.5 percent.

Let’s take a look at some insider activity at Bed Bath & Beyond Inc. (NASDAQ:BBBY) and see the pattern. The earliest insider trade took place on 07/05/2018. Castagna Eugene A parted with a total of 25 thousand shares of company at average share price of $20.81. The total for the sales was set at $520.25 thousand. After this transaction, the President and COO account balance stood at 124.26 thousand shares. The stock lost -26.81 percent since that insider sale. On 12/28/2017, Fiorilli Matthew, Senior VP – Stores, sold 16.96 thousand shares at a price per share of $22.62. This removed 383.57 thousand shares from the insider’s fortune and the stock saw a -32.67 percent retreat in value since the news became public. This transaction left 97.42 thousand shares in the Senior VP – Stores account.

On 05/09/2017, CEO Temares Steven H performed a sale transaction worth $3.59 million. This sale at $37.37 each has eliminated 96.11 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -59.25 percent decrease since the transaction was reported. The insider now is left with 602.42 thousand shares remaining in the account. Fiorilli Matthew, who performs the Senior VP – Stores job, sold 44.66 thousand shares for $1.77 million. The disposal occurred on 04/26/2017 was priced at $39.56 per share. The share price plunged -61.5 percent since the reporting date. Fiorilli Matthew now left with a stake of 111.06 thousand BBBY stock worth $1.69 million after the insider selling.