Bed Bath & Beyond prides itself on savings. But it probably didn’t expect a 20-year-old to make more than $100 million off the big-box retail store.
A college student just scooped up $110 million by selling his stock shares in Bed Bath & Beyond, Financial Times reported Thursday.
University of Southern California student Jake Freeman made the huge profit amid the company’s stock price jump of 60 percent. He sold more than $130 million worth of stock through TD Ameritrade and Interactive Brokers, The New York Post reports.
Freeman bought 5 million shares of Bed Bath & Beyond stock in July at slightly under $5.50 a share, for a total of $25 million, according to the Post. He allegedly made the purchase after raising money from friends and family.
They sound like very generous people — or very wise investors.
Due to his investment in Bed Bath & Beyond, Freeman reportedly owned roughly 6 percent of the unpredictable company.
On Tuesday, the company’s stock reached its highest point in almost five months, at more than $27 per share, per the Post.
Regulatory filings reviewed by Financial Times showed that Freeman sold more than $130 million worth of stock using his TD Ameritrade and Interactive Brokers accounts.
Freeman’s timing was sharp, as Bed Bath & Beyond shares fell 35 percent in extended trading on Thursday, amid a loss of almost 20% during the day’s regular trading session, per CNBC.
A Bed Bath & Beyond Surprise For An Astute College Student
The drop came after activist investor Ryan Cohen disclosed in a securities filing that he plans to sell his entire 10 percent stake in the company.
Cohen, who is chairman of GameStop and co-founder of online pet store Chewy, announced his investment a few months ago, CNN reported Thursday. Investors are familiar with his name thanks to last year’s meme craze.
“I certainly did not expect such a vicious rally upwards,” Freeman reportedly told Financial Times. “I thought this was going to be a six-months-plus play.”
He added that he “was really shocked that it went up so fast.”
Freeman reportedly invests with his uncle. Dr. Scott Freeman, who used to work as a pharmaceutical executive.
Freeman is studying applied mathematics and economics, according to The New York Post.