Bed Bath & Beyond appears to have lost momentum from Reddit-inspired traders, and its fundamental turnaround also may be losing steam, according to KeyBanc Capital Markets.
The stock reemerged as a meme trade earlier this month but has pulled back as that retail trading energy has dissipated. Shares have fallen more than 14% in the past two sessions on daily volume of less than 7 million shares. Volume topped 100 million on June 2.
KeyBanc analyst Bradley Thomas reiterated an underweight rating on the stock, saying in a note to clients on Thursday evening that the retailer’s sales appeared to dip in the back half of the spring and the shares still have significant downside.