Should You Exit Bed Bath & Beyond (BBBY)? - InvestingChannel

Should You Exit Bed Bath & Beyond (BBBY)?

Palm Valley Capital Management, an investment management firm, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, Palm Valley Capital Fund returned 3.01% compared to a 2.57% rise for the S&P SmallCap 600 Index and a 4.90% return for the Morningstar Small Cap Index. The fund’s securities returned 12.2% during the quarter. The fund’s performance early in the quarter was below its benchmark while closing the gap by quarter end. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Palm Valley Capital Management highlighted stocks like Bed Bath & Beyond Inc. (NASDAQ:BBBY) in the first quarter 2023 investor letter. Headquartered in Union, New Jersey, Bed Bath & Beyond Inc. (NASDAQ:BBBY) is a chain of retail stores. On April 6, 2023, Bed Bath & Beyond Inc. (NASDAQ:BBBY) stock closed at $0.3092 per share. One-month return of Bed Bath & Beyond Inc. (NASDAQ:BBBY) was -74.86%, and its shares lost 98.44% of their value over the last 52 weeks. Bed Bath & Beyond Inc. (NASDAQ:BBBY) has a market capitalization of $132.375 million.

Palm Valley Capital Management made the following comment about Bed Bath & Beyond Inc. (NASDAQ:BBBY) in its Q1 2023 investor letter:

“On the one hand, tighter monetary policy has caused a reduction in speculative activity. Trading on the online broker Robinhood has fallen precipitously since the pandemic. The number of IPOs is down 90% from 2021. Certain meme stocks, like Bed Bath & Beyond Inc. (NASDAQ:BBBY), are approaching the dustbin. On the other hand, investors remain emboldened by strong corporate profits, and equity prices are still fanciful versus most historical comparisons. In 2023, despite interest rate volatility and fears of a brewing banking crisis, speculators are entranced by newish playthings like 0DTE options, which accounted for over 40% of total options activity in March (Bank of America). Bitcoin is up over 70% in 2023 after tanking last year. The NASDAQ has gained 17% year-to-date.”

bath, bathroom, bottle, chemical, clean, cleaner, cleaning, cleanse, cleanser, closeup, colorful, detergent, disinfect, disinfectant, fabric, flower, fluid, household, housekeeping, housework, hygiene, laundry, liquid, pink, plastic, product, rose, sanitary, soft, softness, towel, towels, wash, washing, white Copyright: serezniy / 123RF Stock Photo

Bed Bath & Beyond Inc. (NASDAQ:BBBY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Bed Bath & Beyond Inc. (NASDAQ:BBBY) at the end of the fourth quarter which was 12 in the previous quarter.

We discussed Bed Bath & Beyond Inc. (NASDAQ:BBBY) in another article and shared the list of meme stocks ranked from best to worst according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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