Ryan Cohen Bails on Bed Bath & Beyond Stock and Sparks a Tumble

Five months after disclosing a stake in Bed Bath & Beyond Inc., activist shareholder Ryan Cohen wants out, sparking a selloff in the shares of the home goods retailer.

The Union, New Jersey-based company slumped 20% to $18.55 on Thursday, in its biggest one-day drop since late June, after Cohen’s RC Ventures said in a filing with the US Securities and Exchange Commission that it might sell as many as 7.78 million shares of Bed Bath & Beyond, along with some call options.

Bed Bath & Beyond shares have been on a tumultuous ride this year with its ...