Victoria’s Secret & Co. (NYSE:VSCO) Shares Gap Up Following Strong Earnings

Victoria’s Secret & Co. (NYSE:VSCO) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $43.02, but opened at $45.83. Victoria’s Secret & Co. shares last traded at $47.30, with a volume of 878,749 shares traded.

The company reported ($0.50) EPS for the quarter, topping the consensus estimate of ($0.62) by $0.12. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.29 billion. Victoria’s Secret & Co. had a return on equity of 44.06% and a net margin of 2.25%. The company’s quarterly revenue was up 6.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.86) EPS.

Wall Street Analyst Weigh In

Several research firms have weighed in on VSCO. TD Cowen lifted their target price on Victoria’s Secret & Co. from $20.00 to $26.00 and gave the company a “hold” rating in a research report on Friday, August 30th. Bank of America lifted their target price on Victoria’s Secret & Co. from $18.00 to $21.00 and gave the company an “underperform” rating in a research report on Friday, August 30th. Jefferies Financial Group lifted their target price on Victoria’s Secret & Co. from $30.00 to $40.00 and gave the company a “buy” rating in a research report on Tuesday, November 12th. Barclays raised Victoria’s Secret & Co. from an “underweight” rating to an “equal weight” rating and boosted their price objective for the stock from $23.00 to $25.00 in a research report on Wednesday, September 18th. Finally, UBS Group boosted their price objective on Victoria’s Secret & Co. from $13.00 to $18.00 and gave the stock a “sell” rating in a research report on Thursday. Four equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $27.45.

Institutional Investors Weigh In On Victoria’s Secret & Co.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VSCO. Price T Rowe Associates Inc. MD lifted its stake in Victoria’s Secret & Co. by 5.9% in the first quarter. Price T Rowe Associates Inc. MD now owns 46,395 shares of the company’s stock valued at $900,000 after buying an additional 2,594 shares during the last quarter. CWM LLC lifted its stake in Victoria’s Secret & Co. by 172.1% in the second quarter. CWM LLC now owns 17,959 shares of the company’s stock valued at $317,000 after buying an additional 11,360 shares during the last quarter. SummerHaven Investment Management LLC lifted its stake in Victoria’s Secret & Co. by 1.9% in the second quarter. SummerHaven Investment Management LLC now owns 37,538 shares of the company’s stock valued at $663,000 after buying an additional 715 shares during the last quarter. Louisiana State Employees Retirement System lifted its stake in Victoria’s Secret & Co. by 2.6% in the second quarter. Louisiana State Employees Retirement System now owns 39,400 shares of the company’s stock valued at $696,000 after buying an additional 1,000 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its stake in Victoria’s Secret & Co. by 16.4% in the second quarter. Bank of New York Mellon Corp now owns 652,439 shares of the company’s stock valued at $11,529,000 after buying an additional 91,712 shares during the last quarter. Hedge funds and other institutional investors own 90.29% of the company’s stock.

Victoria’s Secret & Co. Stock Performance

The firm has a market cap of $3.71 billion, a price-to-earnings ratio of 27.50 and a beta of 2.19. The company has a quick ratio of 0.31, a current ratio of 1.00 and a debt-to-equity ratio of 2.27. The stock has a fifty day moving average price of $31.87 and a 200-day moving average price of $24.51.

Victoria’s Secret & Co. Company Profile

Victoria's Secret & Co operates as a specialty retailer of women's intimate, and other apparel and beauty products worldwide. It offers bras, panties, lingerie, casual sleepwear, and athleisure and swim, as well as fragrances and body care; and loungewear, knit tops, activewear, and accessories and beauty under the Victoria's Secret, PINK, and Adore Me brands.