Beyond, Inc. (NYSE:BYON), formerly known as Overstock.com (NYSE:BYON), has announced a stock purchase by its Executive Chairman, Marcus Lemonis. On Sunday, Lemonis entered into an agreement to acquire 156,985 shares of Beyond's common stock at $6.37 each. This transaction is set to close today, with the share price reflecting the closing stock price on the last trading day before the purchase agreement.
The purchase by Lemonis, a notable figure in the business world, is a significant investment in the company he leads. The deal was made public through a Form 8-K filing with the Securities and Exchange Commission, which provides current information regarding events that shareholders should know about.
The article is based on an 8K filing.
In other recent news, Beyond Inc. faced a significant reduction in stock targets following disappointing Q3 results and a notably rushed Analyst Day event. Piper Sandler adjusted its price target to $8 from $14, maintaining a neutral rating, while Needham trimmed its target to $9 but maintained a buy rating.
However, BofA Securities downgraded Beyond Inc. from Neutral to Underperform, reducing their price target to $6. BTIG maintains a neutral stance, awaiting further evidence of the company's progress.
Beyond Inc. reported an adjusted loss per share of $0.96 and revenues of $311 million, marking a 16.6% year-over-year decline. Despite the drop in revenue, the company saw a 21% increase in active customers, reaching 6.0 million, but orders delivered decreased by 19% year-over-year to 1.6 million.
As part of its recent developments, Beyond Inc. announced the anticipated sale of its headquarters by the fourth quarter and a projected $20 million annual reduction in staff-related expenses. The company is undergoing extensive changes aimed at repositioning itself as a comprehensive provider of products and services for home-related needs.
These are among the recent developments at Beyond Inc.
InvestingPro Insights
Marcus Lemonis's recent stock purchase of Beyond, Inc. (NYSE:BYON) comes at a time when the company faces significant challenges, as revealed by InvestingPro data and tips. The stock has experienced a steep decline, with a 70.36% drop over the past six months and is currently trading near its 52-week low. This context makes Lemonis's investment particularly noteworthy, as it may signal his confidence in the company's potential turnaround.
InvestingPro Tips highlight that Beyond is quickly burning through cash and is not expected to be profitable this year. The company's revenue growth has also been negative, with a 6.66% decline in the last twelve months. These factors may explain the recent stock price performance and underscore the challenges facing the company.
Despite these headwinds, Beyond holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates its current difficulties. Additionally, with the stock's RSI suggesting it's in oversold territory, Lemonis's purchase might be seen as a strategic move to acquire shares at a potentially undervalued price.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Beyond, Inc., providing a deeper understanding of the company's financial health and market position.
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