Bed Bath Story

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BBBY -- USA Stock  

USD 52.89  16.02  43.45%

It appears Bed Bath may not have a good chance to recover from the current slide as its shares fell again. Bed Bath Beyond current daily volatility is 3.89 percent, with a beta of 1.03 and an alpha of -0.07 over DOW. As many millenniums are trying to avoid the current volatility, we are going to break down Bed Bath Beyond a little further to understand its historical price patterns. We will evaluate if Bed Bath shares are reasonably priced going into February.
Published over two weeks ago
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Should we continue shadow Bed Bath (NASDAQ:BBBY) executives?
Bed Bath Beyond currently holds roughly 1.44 B in cash with 483.9 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 11.58. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bed Bath has an asset utilization ratio of 151.92 percent. This suggests that the company is making $1.52 for each dollar of assets. An increasing asset utilization means that Bed Bath Beyond is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Bed Bath, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Bed Bath along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Bed Bath's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Bed Bath in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Bed Bath. Your research has to be compared to or analyzed against Bed Bath's peers to derive any actionable benefits. When done correctly, Bed Bath's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Bed Bath Beyond.

How important is Bed Bath's Liquidity

Bed Bath financial leverage refers to using borrowed capital as a funding source to finance Bed Bath Beyond ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bed Bath financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Bed Bath's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Bed Bath, but it might be worth checking our own buy vs. sell analysis

Bed Bath Correlation with Peers

Investors in Bed Bath can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Bed Bath Beyond. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Bed Bath and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Bed Bath is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Bed Bath for more details

Acquisition by Patrick Gaston of 4457 shares of Bed Bath subject to Rule 16b-3

Legal trades by Bed Bath insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Bed Bath insider trading alert for grant of common stock $.01 par value per share by Patrick Gaston, the corporate stakeholder, on 20th of December 2020. This event was filed by Bed Bath Beyond Inc with SEC on 2019-07-29. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Bed Bath Further

Macroaxis philosophy in foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Bed Bath Beyond exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Bed Bath Beyond mean deviation of 2.62, and Risk Adjusted Performance of 0.0359 to double-check the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Does Bed Bath have cash to continue?

Current Jensen Alpha is up to -0.07. Price may slide again. Bed Bath Beyond shows above-average downside volatility for the selected time horizon. We advise investors to inspect Bed Bath Beyond further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Bed Bath future alpha.

Our Bottom Line On Bed Bath Beyond

While many other companies in the specialty retail industry are either recovering or due for a correction, Bed Bath may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 7th of January 2021, we believe that at this point, Bed Bath is fairly valued with below average probability of distress within the next 2 years. However, our ongoing buy-or-sell advice on the company is Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Bed Bath Beyond. Please refer to our Terms of Use for any information regarding our disclosure principles.

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