Bed Bath & Beyond Inc (NASDAQ:BBBY) shares are trading lower Tuesday following a downgrade from Baird.
Baird analyst Peter Benedict downgraded Bed Bath & Beyond from Neutral to Underperform and announced a $4 price target after the stock soared nearly 40% on Monday amid increased retail investor interest. The Baird analyst referred to the move as the "latest meme stock frenzy."
Retail darlings AMC Entertainment Holdings Inc (NYSE:AMC) and GameStop Corp (NYSE:GME) surged alongside Bed Bath & Beyond on Monday as the retail crowd highlighted high short interest in the names across social media platforms. Bed Bath & Beyond was still among the top trending tickers on Stocktwits at press time.
Jim Cramer on Monday warned that Bed Bath & Beyond may be in need of a credit line and suggested that the retailer should commence a stock offering following the surge in its stock. He reiterated that he believes the retailer should issue stock in Tuesday's meeting for Investing Club members.
Related Link: Jim Cramer Says Retail Is Looking For 'The Mother Of All Shorts': AMC Entertainment Goes APE, Bed Bath & Beyond's Next Move
BBBY Price Action: Bed Bath & Beyond has a 52-week high of $30.06 and a 52-week low of $4.38.
The stock was down 20.2% at $9.10 at press time, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.