Bed Bath & Beyond (NASDAQ:BBBY) is catching headlines today after reports that investor Ryan Cohen’s RC Ventures will hold three independent seats on the company’s board of directors. BBBY stock is up a solid 5% on the promising development.
What do you need to know about the latest from this once-notorious meme stock?
Well, today’s news comes just weeks after RC Ventures revealed it owns a nearly 10% stake in Bed Bath & Beyond. Recently, Cohen also shared his thoughts on the retailer’s potential options, including possibly selling its Buybuy Baby retail chain. Per a Bloomberg report, two of the three members joining the company’s board will also join a separate, four-person committee dedicated to strategizing the baby-first spinoff.
CEO Mark Tritton commented on the recent additions to the board in a press release:
“Our buybuy BABY business is a tremendous asset, and we are committed to unlocking its full value. As we move forward, our goals will continue to focus on delivering value for our shareholders, enhancing experiences for our customers, executing on the transformation throughout our business, and creating new and exciting opportunities for our dedicated employees across all our banners.”
So, what do today’s actions mean for BBBY stock going forward?
BBBY Stock Hopes to Maintain Recent Growth with Cohen Involvement
Bed Bath & Beyond has historically embraced bold changes to its corporate makeup. In 2019, a number of investing groups pressured the company to “revamp its strategy” following years of declining share prices. This actually also led to four new appointments to its board.
That in mind, Cohen’s involvement in the company should be a sure-fire way to get additional attention and investments. C0hen has been a busy investor of late. Today’s announcement comes on top of a GameStop (NYSE:GME) rally this week, due in no small part to Cohen. The co-founder of Chewy (NYSE:CHWY) and current chairman of GameStop purchased 100,000 shares of the video game retailer. This pushed GME stock up more than 50% this week, after a fairly uneventful past six months.
Now, it seems lightning may strike twice as BBBY eyes the same Cohen-induced gains. Ryan Cohen shared his thoughts on today’s agreement:
“By refreshing the Board with shareholder-designated individuals who possess capital markets acumen and transaction experience, the Company is well-positioned to review alternatives for buybuy BABY […] I appreciate that management and the Board were willing to promptly embrace our ideas and look forward to supporting them in the year ahead.”
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.