Bed Bath & Beyond stock falls further, seeks reverse stock split

Yahoo Finance anchors discuss the fall of Bed Bath & Beyond stock, as the retailer seeks approval for a reverse stock split.

Video transcript

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SEANA SMITH: Time for our Triple Play, three stocks that we're watching in the final 30 minutes of training. We've got Bed, Bath & Beyond, Foot Locker, and Starbucks. Let's kick it off with Bed, Bath & Beyond, once again, is a top trending ticker here at Yahoo Finance. The retailer seeking approval for a reverse stock split. That actually sent shares plunging today. This isn't necessarily an outlier. A lot of times, we do see this type of movement here.

Now, what is under consideration from Bed, Bath & Beyond is that it will be in a range of a 1 for 5 stock split or a 1 for 10 stock split. So a lot of time, this move is done to help boost the price of shares. We'll see whether or not that actually happens. CEO Sue Grove saying that the move, quote, "will enable us to continue rebuilding liquidity to execute our turnaround plans and better position the company financially." They are trying to do everything they can to turn around the business, to put themselves in a better position financially. The Street doesn't look too excited about this just yet, but we'll see whether or not it actually does boost shares.

JOSH SCHAFER: Right, Seana, I mean, it's really about getting more capital if you're Bed, Bath & Beyond, right? And you've got to get that stock price up to do that. We know the deal that they have right now with funding coming from Hudson Bay requires the stock to stay above $1 in order for-- or Hudson Bay can back out of the funding, the monthly funding of about $100 million that's going to Bed, Bath & and Beyond. So it's really sort of an effort potentially maybe to keep that stock price up to keep investors interested.

And that's, of course, institutional investors we're talking about, but Bed, Bath & Beyond does have the retail trade, too. And you wonder where the stock split, if the price were to go back up, would the meme play get involved? We've seen AMC sort of benefit from that to some extent, right, as the stock goes up. So I think that could be an interesting part of it, Dave. Of course, what they're trying to do with that money is get inventories back in and get stuff in the stores, right, and then they got to get me and you back in the stores.

SEANA SMITH: Yeah, a long way to go.

JOSH SCHAFER: So certainly a long way to go. And even if things are back on the shelves, are we going back to Bed, Bath & Beyond is the question.

DAVE BRIGGS: What stores? I had three. I have zero now. They've announced last week closing an additional 400 and not offering severance to the employees in those stores. So still lacking an actual turnaround plan, to your point earlier, closing stores, as well as your play as well, which I will discuss in a moment.