BBBY - Bed Bath & Beyond soars as traders bet on bankruptcy vs. survival odds

2023-04-19 07:04:53 ET

Bed Bath & Beyond ( NASDAQ: BBBY ) followed up a 22.46% jump on Tuesday with a 34.11% premarket gain on Wednesday to push shares up to $0.47.

The speculative trading on BBBY has not erased the big year-to-date loss with the retailer trading over $4.00 for a few sessions earlier in 2023.

A mini-rally began last week when BBBY raised around $48.5M under its at-the-market offering program with B. Riley Securities. The amount were raised through the sale of 100.1M shares and the net proceeds were used to satisfy conditions pursuant to the amended credit agreement for the testing period ending April 11. The retailer seeks to raise $300M by April 26 to avert bankruptcy.

Volume on BBBY has picked up over the last few sessions as more traders have bet on the bankruptcy vs. survival scenarios. Short interest stands at about 18% of total float. Shares of BBBY are still down more than 95% over the last 52 weeks.

Related: Watch these stocks for a potential rally as short sellers get tested

For further details see: