Bath & Body Works (NYSE:BBWI) Shares Gap Down – Should You Sell?

Bath & Body Works, Inc. (NYSE:BBWI) gapped down prior to trading on Thursday . The stock had previously closed at $41.08, but opened at $36.65. Bath & Body Works shares last traded at $36.60, with a volume of 1,617,941 shares changing hands.

Wall Street Analyst Weigh In

BBWI has been the topic of a number of recent analyst reports. Telsey Advisory Group reaffirmed an “outperform” rating and issued a $43.00 target price on shares of Bath & Body Works in a research report on Thursday. Deutsche Bank Aktiengesellschaft increased their price target on shares of Bath & Body Works from $51.00 to $52.00 and gave the stock a “buy” rating in a research report on Tuesday, November 26th. JPMorgan Chase & Co. set a $47.00 price target on shares of Bath & Body Works in a research report on Thursday. TD Cowen increased their price target on shares of Bath & Body Works from $42.00 to $48.00 and gave the stock a “buy” rating in a research report on Thursday, December 12th. Finally, Morgan Stanley reduced their price target on shares of Bath & Body Works from $51.00 to $48.00 and set an “overweight” rating on the stock in a research report on Thursday, November 21st. Five investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $45.38.

Bath & Body Works Stock Up 1.0 %

The company’s fifty day moving average is $37.70 and its two-hundred day moving average is $34.12. The stock has a market cap of $7.84 billion, a price-to-earnings ratio of 8.83, a PEG ratio of 0.92 and a beta of 1.83.

Bath & Body Works (NYSE:BBWI) last announced its quarterly earnings results on Thursday, February 27th. The company reported $2.09 EPS for the quarter, beating the consensus estimate of $2.04 by $0.05. The company had revenue of $2.79 billion for the quarter, compared to analyst estimates of $2.78 billion. Bath & Body Works had a net margin of 12.43% and a negative return on equity of 44.03%. Sell-side analysts predict that Bath & Body Works, Inc. will post 3.3 EPS for the current fiscal year.

Bath & Body Works Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 7th. Shareholders of record on Friday, February 21st will be paid a $0.20 dividend. The ex-dividend date of this dividend is Friday, February 21st. This represents a $0.80 annualized dividend and a yield of 2.21%. Bath & Body Works’s dividend payout ratio is currently 19.51%.

Bath & Body Works declared that its Board of Directors has approved a stock buyback plan on Thursday, February 27th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 6.4% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On Bath & Body Works

Hedge funds have recently added to or reduced their stakes in the stock. SRS Capital Advisors Inc. grew its position in shares of Bath & Body Works by 99.7% during the fourth quarter. SRS Capital Advisors Inc. now owns 659 shares of the company’s stock worth $26,000 after acquiring an additional 329 shares during the last quarter. Golden State Wealth Management LLC purchased a new position in shares of Bath & Body Works during the fourth quarter worth approximately $26,000. UMB Bank n.a. grew its position in shares of Bath & Body Works by 58.8% during the fourth quarter. UMB Bank n.a. now owns 905 shares of the company’s stock worth $35,000 after acquiring an additional 335 shares during the last quarter. Lindbrook Capital LLC grew its position in shares of Bath & Body Works by 81.9% during the fourth quarter. Lindbrook Capital LLC now owns 957 shares of the company’s stock worth $37,000 after acquiring an additional 431 shares during the last quarter. Finally, Smartleaf Asset Management LLC grew its position in shares of Bath & Body Works by 135.0% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,013 shares of the company’s stock worth $39,000 after acquiring an additional 582 shares during the last quarter. 95.14% of the stock is currently owned by hedge funds and other institutional investors.

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.