Bed Bath & Beyond jumps 24% as interim CEO Sue Gove buys $230,500 worth of shares in the struggling retailer
- Bed Bath & Beyond shares leaped 15% on Thursday as company insiders increased their holdings.
- Interim CEO
Sue Goveincreased her stake in the embattled company by 90%.
Bed Bath & Beyond stock rose sharply on Thursday, ignited by the purchase of thousands of shares by the company's interim chief executive Sue Gove who was recently brought in to help the beleaguered retailer turn its fortunes around.
The stock soared as much as 24% to $5.58, the highest price in a week and the highest since the company ousted former CEO Mark Tritton and posted disappointing first-quarter financial results.
The stock surged as a filing with the Securities and Exchange Commission showed Gove had made a big addition to her holdings of the retail chain, buying $230,5000 worth shares in the company, with a July 1 purchase of 50,000 shares at $4.61 each. The shares closed at $4.97 each on June 30.
The purchases represent a 90% increase to her holdings, boosting it to 105,587 shares.
Bed Bath & Beyond last week said it was "time for a change in leadership," and named Gove as interim CEO last week to replace Tritton. Gove had been serving an independent board member and the company said it was set to "focus on reversing recent results, addressing supply chain and inventory, and strengthening its balance sheet."
The company last week reported more than $357 million in net losses for the first quarter, saying it has been struggling with high inflation, low consumer confidence, and low demand for home goods. Consumers following the end of mass COVID lockdowns broadly have been shifting their purchases to services and spending less on items such as housewares.
Gove was not the only company insider to make purchases of company stock. Board member Harriet Edelman bought 10,000 shares at $4.94 each and board member Jeff Kirwan purchased 10,000 shares at $4.90 each on July 1, with each increasing their holdings.
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