Shares of brick-and-mortar retailer Bed Bath & Beyond surged higher on Thursday following the disclosure of several insider purchases—including new CEO, Sue Gove—as top executives at the company remain optimistic about a turnaround despite plunging sales.
Bed Bath & Beyond’s stock jumped nearly 22% after news that several company executives bought up tens of thousands of shares, a move viewed by investors as a vote of confidence that the struggling retailer can be saved from going out of business.
Interim CEO Sue Gove purchased 50,000 shares—worth roughly $230,000—shortly after taking the top job last week, according to new regulatory filings late on Wednesday.
Gove replaced CEO Mark Tritton, who had been in the role since 2019 but was ousted by the board on June 29 after yet another quarter of dismal sales results, with the company’s stock price plunging to less than $5 per share.
Two additional board members, Harriet Edelman and Jeff Kirwan, each bought 10,000 shares at under $5 per share, according to filings.
While investors cheered the recent moves by Bed Bath & Beyond’s leadership, Wall Street analysts have been sounding the alarm that the retailer is now in a precarious financial position, with sales in the most recent quarter plunging by roughly 25% from a year ago.
Bank of America warned that “liquidity is now our top concern after the company burned over $500 million” in the previous quarter, with just over $100 million in cash left on its balance sheet.