Overstock.com (NASDAQ:OSTK) may be turning a new corner after acquiring the Bed Bath & Beyond intellectual property address. One of the company’s top executives certainly thinks so. Marcus Lemonis, who the e-commerce leader recently appointed to its board of directors, recently made a significant purchase, increasing his position in OSTK stock by 42,000 shares.
This isn’t even the first big buy he’s made since taking this position in early October 2023. On Oct. 5, Lemonis acquired 31,800 shares, according to a report from GuruFocus Research. Since then, share prices have been rising, and they don’t appear to be slowing down today. This bodes well for the company’s future in the second half of the year.
What should be the takeaway from this announcement? Let’s take a closer look and assess what investors should be expecting in the coming months from Overstock.
What’s Happening With OSTK Stock
While it’s lost some momentum since this morning’s surge, OSTK stock remains elevated. As of this writing, it is up more than 3% for the day and could easily reverse course and continue rising. This comes after a week of solid gains, during which OSTK has risen more than 11% despite some dips along the way. Through it all, the stock has displayed impressive resilience.
This could be part of the reason why Lemonis is doubling down on shares. According to a recent Form 4 filing with the U.S. Securities and Exchange Commission (SEC), he added 42,200 shares of OSTK stock at the price of $17.43. This brings his current holdings to a high total of 107,000. Following his first buy last week, InvestorPlace contributor Josh Enomoto reported:
“To be sure, Lemonis’ acquisition of OSTK stock represents a much-needed confidence boost. Nevertheless, Overstock faces significant credibility concerns amid the shifting retail landscape. One month ago, management revealed that since buying the intellectual-property assets of Bed Bath & Beyond and rebranding Overstock in the U.S. under the former big-box retailer’s banner, revenue has fallen significantly.”
While that is certainly true, Lemonis’ purchases could help launch the turnaround that Overstock needs. If the recent performance of OSTK stock is any indication, it may already be having that effect. And while the acquisition of the Bed Bath & Beyond IP may be seen as bold, Enomoto also notes that the numbers support the decision, which sent OSTK soaring.
Additionally, institutional investor sentiment toward the stock rose in Q2 2023. According to data from Whale Wisdom, the number of funds holding OSTK increased, while new positions in it spiked by 188%. The number of closed positions also fell by 34%, and the PUT/CALL ratio is decreasing. Lemonis’ confidence in the company could compel other investors to stake major bets on it, helping OSTK stock garner further in the months ahead.
On the date of publication, Samuel O’Brient did not have (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.
