Bath & Body Works (NYSE:BBWI) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Bath & Body Works (NYSE:BBWI) from a strong-buy rating to a hold rating in a report issued on Tuesday, Zacks.com reports.

According to Zacks, “Bath & Body Works is a specialty retailers and home to America’s Favorite Fragrances(R) offering exclusive fragrances for the body and home, fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. Bath & Body Works, formerly known as L BRANDS INC, is based in COLUMBUS, Ohio. “

A number of other research analysts have also recently issued reports on BBWI. Robert W. Baird lifted their price target on Bath & Body Works from $85.00 to $95.00 and gave the company an outperform rating in a report on Thursday, November 18th. Morgan Stanley boosted their price objective on Bath & Body Works from $84.00 to $90.00 and gave the stock an overweight rating in a report on Friday, November 19th. The Goldman Sachs Group started coverage on Bath & Body Works in a report on Tuesday, December 14th. They set a buy rating and a $93.00 price objective for the company. UBS Group boosted their price objective on Bath & Body Works from $90.00 to $98.00 and gave the stock a buy rating in a report on Friday, November 19th. Finally, Credit Suisse Group boosted their price objective on Bath & Body Works from $67.00 to $76.00 and gave the stock a neutral rating in a report on Thursday, November 18th. Two investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. According to data from MarketBeat, the company has an average rating of Buy and an average target price of $86.63.

Bath & Body Works stock opened at $55.83 on Tuesday. The firm has a 50-day simple moving average of $70.92. Bath & Body Works has a 12-month low of $29.17 and a 12-month high of $82.00. The company has a market capitalization of $14.39 billion, a PE ratio of 9.85, a price-to-earnings-growth ratio of 0.69 and a beta of 1.70.

Bath & Body Works (NYSE:BBWI) last released its quarterly earnings results on Wednesday, November 17th. The company reported $0.92 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.60 by $0.32. Bath & Body Works had a negative return on equity of 165.36% and a net margin of 14.24%. The business had revenue of $1.68 billion during the quarter, compared to analysts’ expectations of $1.61 billion. During the same period in the previous year, the business posted $1.13 earnings per share. The firm’s revenue for the quarter was down 1.3% compared to the same quarter last year. As a group, analysts forecast that Bath & Body Works will post 4.5 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Friday, December 3rd. Stockholders of record on Friday, November 19th were given a dividend of $0.15 per share. The ex-dividend date was Thursday, November 18th. This represents a $0.60 annualized dividend and a dividend yield of 1.07%. Bath & Body Works’s payout ratio is currently 10.58%.

In related news, Director Robert H. Schottenstein sold 5,375 shares of the business’s stock in a transaction that occurred on Wednesday, November 24th. The stock was sold at an average price of $74.52, for a total value of $400,545.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 16.31% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of BBWI. Lone Pine Capital LLC acquired a new position in shares of Bath & Body Works in the 3rd quarter valued at approximately $1,531,646,000. BlackRock Inc. acquired a new position in shares of Bath & Body Works in the 3rd quarter valued at approximately $1,184,238,000. Egerton Capital UK LLP acquired a new position in shares of Bath & Body Works in the 3rd quarter valued at approximately $889,125,000. Steadfast Capital Management LP acquired a new position in shares of Bath & Body Works in the 3rd quarter valued at approximately $468,997,000. Finally, Primecap Management Co. CA acquired a new position in Bath & Body Works during the 3rd quarter worth approximately $382,655,000. Institutional investors and hedge funds own 92.30% of the company’s stock.

About Bath & Body Works

Bath & Body Works, Inc is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap.

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