Bed Bath Story

BBBY -  USA Stock  

USD 23.66  1.35  5.40%

It appears Bed Bath may not recover as fast as we have hopped for as its price went down 1.76% today. The company current daily volatility is 9.54 percent, with a beta of -3.69 and an alpha of 1.41 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 analyze why Bed Bath investors may still consider a stake in the business.
Published over three weeks ago
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Should you exit Bed Bath Beyond after the current volatility slide?
Bed Bath Beyond currently holds roughly 1.46 B in cash with 526.22 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 12.2.
Our investment recommendation module complements current analysts and expert consensus on Bed Bath. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
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

Purchase by Ann Yerger of 500 shares of Bed Bath

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 perchase of common stock $.01 par value per share by Ann Yerger, the corporate stakeholder, on 21st of April 2021. This event was filed by Bed Bath Beyond Inc with SEC on 2021-04-21. 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

Bed Bath appears to be somewhat reliable, given 1 month investment horizon. Bed Bath Beyond secures Sharpe Ratio (or Efficiency) of 0.0897, which signifies that the company had 0.0897% of return per unit of standard deviation over the last month. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Bed Bath Beyond technical indicators you can presently evaluate if the expected return of 0.86% is justified by implied risk. Please makes use of Bed Bath Beyond risk adjusted performance of 0.0936, and Mean Deviation of 5.63 to double-check if our risk estimates are consistent with your expectations.
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-0.280.63-0.640.9
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will Bed Bath price slide impact its balance sheet?

The expected short fall is down to -6.92 as of today. Bed Bath Beyond is displaying above-average volatility over the selected time horizon. Investors should scrutinize Bed Bath Beyond independently to ensure intended market timing strategies are aligned with expectations about Bed Bath volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bed Bath's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bed Bath's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Current Takeaway on Bed Bath Investment

While other entities under the specialty retail industry are still a bit expensive, Bed Bath may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to drop some or all of your Bed Bath holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Bed Bath.

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 Vlad Skutelnik 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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