Beyond, Inc. (NYSE:BYON), formerly known as Overstock.com (NYSE:BYON), announced on Monday that its Executive Chairman, Marcus Lemonis, has entered into a Stock Purchase Agreement to acquire 71,428 shares of the company's common stock. The transaction is set at a price of $7.00 per share, equivalent to the closing stock price on the date of the agreement, October 28, 2024.
The purchase by Lemonis, a notable move by a high-ranking company insider, is scheduled to close today, subject to standard closing conditions. This development comes as Beyond, Inc., which operates within the retail-catalog and mail-order houses industry, continues to navigate the competitive e-commerce landscape.
The company, which has its principal executive offices in Midvale, Utah, has undergone several name changes in its history, with the most recent transition to Beyond, Inc. reflecting a broader strategic shift. The company's commitment to its business model is underscored by the investment of its Executive Chairman, a gesture that often signals confidence in the company's future performance.
The information for this article is based on a press release statement from an SEC filing by Beyond, Inc.
In other recent news, Beyond Inc. has experienced a series of significant developments. The company reported an adjusted loss per share of $0.96 and revenues of $311 million, reflecting a 16.6% year-over-year decline. Despite the decrease in revenue, active customers increased by 21%, reaching 6 million, however, orders delivered saw a 19% decrease year-over-year to 1.6 million.
In addition, the company plans to sell its headquarters by the fourth quarter, projecting a $20 million annual reduction in staff-related expenses.
Analyst firms have reacted to these developments. 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. BofA Securities downgraded Beyond Inc. from Neutral to Underperform, reducing their price target to $6.
Amid these developments, Beyond Inc. continues its efforts to realign its business and achieve its long-term goals.
InvestingPro Insights
In light of Marcus Lemonis's recent stock purchase, InvestingPro data provides additional context for Beyond, Inc.'s current financial situation. The company's market capitalization stands at $320.72 million, reflecting its position in the retail-catalog and mail-order houses industry. However, Beyond faces some challenges, as evidenced by its revenue decline of 6.66% over the last twelve months and a more pronounced quarterly revenue drop of 16.58% in Q3 2024.
InvestingPro Tips highlight that Beyond is "quickly burning through cash" and "suffers from weak gross profit margins," which aligns with the reported gross profit margin of 16.42%. These factors may explain why Lemonis's investment is garnering attention, as it could be seen as a vote of confidence despite the company's financial headwinds.
The stock's recent performance has been notably volatile, with InvestingPro data showing a significant 31.1% decline in the past week and a 66.12% drop over the last six months. This context makes Lemonis's purchase at the current market price particularly interesting to investors.
For those seeking a more comprehensive analysis, InvestingPro offers 15 additional tips on Beyond, Inc., providing deeper insights into the company's financial health and market position.
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