Victoria's Secret & Co. (NYSE:VSXY) Stock Rating Cut to "Neutral" at Bank of America

Key Points

• Bank of America downgraded Victoria’s Secret to Neutral from Buy, while raising its price target to $112 from $95—implying just 2.08% upside from the prior close.
• Analyst sentiment is mixed but averages to Hold: seven analysts rate the stock Buy and eight Hold, with a consensus price target of $97.33.
• The company beat quarterly EPS expectations, reporting $0.95 versus estimates of $0.77; revenue was $1.61 billion, slightly below expectations, though up 10.4% year over year.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) was downgraded by investment analysts at Bank of America from a "buy" rating to a "neutral" rating in a research report issued on Thursday, FinViz reports. They currently have a $112.00 target price on the stock, up from their prior target price of $95.00. Bank of America's target price points to a potential upside of 2.08% from the company's previous close.

Several other equities research analysts have also weighed in on VSXY. TD Cowen raised their target price on Victoria's Secret & Co. from $75.00 to $80.00 and gave the stock a "hold" rating in a research report on Tuesday, August 18th. Barclays increased their price target on shares of Victoria's Secret & Co. from $106.00 to $112.00 and gave the company an "overweight" rating in a research note on Tuesday, October 20th. Needham & Company LLC started coverage on shares of Victoria's Secret & Co. in a research report on Friday, October 16th. They set a "buy" rating and a $106.00 price objective for the company. BMO Capital Markets assumed coverage on shares of Victoria's Secret & Co. in a research report on Tuesday, September 8th. They issued a "market perform" rating and a $80.00 target price on the stock. Finally, UBS Group cut their price target on shares of Victoria's Secret & Co. from $95.00 to $87.00 and set a "neutral" rating on the stock in a research note on Friday, September 4th. Seven equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, Victoria's Secret & Co. currently has an average rating of "Hold" and a consensus price target of $97.33.

Victoria's Secret & Co. Stock Performance

NYSE VSXY opened at $109.72 on Thursday. The company has a market cap of $8.75 billion, a P/E ratio of 31.80, a P/E/G ratio of 0.74 and a beta of 2.11. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.36 and a quick ratio of 0.57. The stock has a 50-day moving average of $88.65 and a two-hundred day moving average of $71.51. Victoria's Secret & Co. has a 1-year low of $33.61 and a 1-year high of $116.32.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) last issued its quarterly earnings results on Thursday, September 3rd. The company reported $0.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.77 by $0.18. Victoria's Secret & Co. had a net margin of 5.46% and a return on equity of 40.43%. The business had revenue of $1.61 billion for the quarter, compared to analysts' expectations of $1.62 billion. The company's quarterly revenue was up 10.4% compared to the same quarter last year. As a group, analysts anticipate that Victoria's Secret & Co. will post 4.75 EPS for the current year.

Insider Activity at Victoria's Secret & Co.

In related news, insider Melinda McAfee sold 7,000 shares of the company's stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $98.90, for a total value of $692,300.00. Following the completion of the sale, the insider owned 156,817 shares in the company, valued at $15,509,201.30. This represents a 4.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 14,000 shares of company stock valued at $1,339,750. Insiders own 0.52% of the company's stock.

Hedge Funds Weigh In On Victoria's Secret & Co.

A number of hedge funds and other institutional investors have recently made changes to their positions in VSXY. Fortitude Family Office LLC increased its position in Victoria's Secret & Co. by 126.7% during the 3rd quarter. Fortitude Family Office LLC now owns 306 shares of the company's stock worth $27,000 after purchasing an additional 171 shares during the period. Parallel Advisors LLC lifted its position in shares of Victoria's Secret & Co. by 666.7% during the 1st quarter. Parallel Advisors LLC now owns 621 shares of the company's stock valued at $29,000 after acquiring an additional 540 shares during the period. Carolina Wealth Advisors LLC acquired a new stake in shares of Victoria's Secret & Co. during the 3rd quarter valued at approximately $31,000. Integrated Wealth Concepts LLC purchased a new stake in shares of Victoria's Secret & Co. during the 2nd quarter worth approximately $49,000. Finally, Signaturefd LLC boosted its stake in shares of Victoria's Secret & Co. by 83.4% during the 3rd quarter. Signaturefd LLC now owns 552 shares of the company's stock worth $49,000 after acquiring an additional 251 shares in the last quarter. Hedge funds and other institutional investors own 90.29% of the company's stock.

Victoria's Secret & Co. Company Profile

Victoria's Secret & Co. is a specialty retailer focused on intimate apparel, beauty products and related merchandise. Its offerings include bras, lingerie, panties, sleepwear, apparel, fragrances and body care products. The company operates under the Victoria's Secret and PINK brands and also owns Adore Me, an intimate-apparel brand with a digital-first business. It serves customers through stores and e-commerce, primarily in North America, as well as through international operations and partners.

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