RC Ventures seeks the right to sell its stake in Bed Bath & Beyond (NASDAQ:BBBY)
According to a Form 144, GameStop Chairman Ryan Cohen, RC Ventures, requested the right to sell his 9.45 million shares of Bed Bath & Beyond (NASDAQ:BBBY) through JP Morgan Securities.
“RC Ventures directly beneficially owned 9,450,100 shares, including 1,670,100 shares underlying certain call options, constituting approximately 11.8% of the shares outstanding,” a 13-D filing said Tuesday.
Shares of the beleaguered retailer pared sharply from late-trading gains on Wednesday, falling more than 10% from the peak marked before the disclosure. The move has also drawn negative attention from social media as it remains the most talked about action on Wall Street Bets. The stock ticker has also become a trending topic on Google, with search interest surging in August.
Interest in Google search over time:
However, increases in interest in search and social media aren’t the only metrics that far exceed the average. For example, more than 220 million shares changed hands on Wednesday, continuing a trend after trading volume hit nearly 400 million on Tuesday. Options stock also remained exceptionally active on Wednesday. The high trade action was initially triggered by out-of-the-money options buying by RC Ventures which helped trigger a squeeze this week.
Trading volume is critical because, under Rule 144, the greater of 1% of total shares outstanding or the average trading volume of the previous four weeks can be sold at any given time after disclosure.
Bed Bath & Beyond (BBBY) CFO Gustavo Amal also filed 144 on Aug. 16, requesting the right to sell his 22,513-share stake. UBS is enlisted to facilitate the sale of its shares.
Find out how the SeekingAlpha Quant team predicted the crunch earlier this month.