Bed Bath and Beyond (NASDAQ:BBBY) saw its shares rise from the sack early Friday, to conclude a turbulent week.
Comments that the rise was the result of hype did not help,
One expert wrote that BBBY has turned from a company reeling toward irrelevance to one that, while not firmly on the path to growth, is at least heading in the right direction with leadership that has a solid grasp of what it needs to achieve next.
"Yet the meteoric rise of its stock in the past week," the piece continued, "is not tethered to the reality of that comeback. Rather, it's part of a game being played to punish short-sellers who have staked out large positions betting the home goods retailer will fall."
Earlier this week, Wedbush Securities analyst Seth Basham warned that shares of Bed Bath & Beyond have gotten ahead of themselves.
Basham and his team removed BBBY from Wedbush's Best Idea List and downgrading the rating to Neutral from Outperform.
"We continue to see high potential for BBBY’s transformation, but believe the stock is ahead of itself and the sharp move higher is unsustainable."
They see material progress in sales-driving initiatives evidenced and call the company’s 4Q20 and 2021 margin guidance is conservative, but that doesn't make up for the share price rocket ride.
Friday, BBBY shares jumped $3.33, or 9.9%, to $36.97.
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