Shares of Bed Bath & Beyond (NASDAQ: BBBY) fell almost 10% in today’s session. This can be attributed to privately negotiated exchange agreements with institutional debt holders. The debt holders will exchange approximately $123 million worth of notes for roughly 11.7 million common shares.
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Although this improves the company’s balance sheet, it highlights that Bed Bath & Beyond is struggling and is likely to continue doing so as interest rates rise. Furthermore, it dilutes existing shareholders.
Is BBBY Stock a Buy or Sell?
Unsurprisingly, BBBY stock has a Strong Sell consensus rating based on two Holds and eight Sells assigned in the past three months. However, the average BBBY stock price target of $4.28 implies 19.22% upside potential.
