Bath & Body Works, Inc. (NYSE:BBWI) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts are cautious on BBWI: Bath & Body Works has a consensus rating of "Hold" from 18 analysts, with 14 holds, 3 buys, and 1 sell. The average 12-month price target is $22.00.
• Recent earnings topped expectations, but sales declined year over year: The company reported EPS of $0.32, above the $0.29 estimate, on revenue of $1.38 billion, slightly ahead of forecasts. However, quarterly revenue fell 3.2% from the same period last year.
• Stock and dividend details: BBWI opened at $21.09 and trades near its 50-day and 200-day moving averages, with a market cap of about $4.25 billion. It also pays a quarterly dividend of $0.20 per share, for an annualized yield of about 3.8%.

Bath & Body Works, Inc. (NYSE:BBWI - Get Free Report) has earned a consensus recommendation of "Hold" from the eighteen ratings firms that are currently covering the stock, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, fourteen have issued a hold rating and three have assigned a buy rating to the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $22.00.

A number of research analysts have recently issued reports on BBWI shares. Barclays dropped their price target on shares of Bath & Body Works from $25.00 to $23.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 28th. Raymond James Financial reaffirmed a "market perform" rating on shares of Bath & Body Works in a report on Wednesday, May 27th. Piper Sandler assumed coverage on Bath & Body Works in a research note on Friday, May 15th. They set a "neutral" rating and a $20.00 target price for the company. Telsey Advisory Group reduced their price target on Bath & Body Works from $25.00 to $22.00 and set a "market perform" rating for the company in a report on Thursday, May 28th. Finally, UBS Group decreased their price target on Bath & Body Works from $22.00 to $19.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 20th.

Bath & Body Works Trading Up 2.1%

Shares of BBWI opened at $21.09 on Friday. Bath & Body Works has a twelve month low of $14.27 and a twelve month high of $33.67. The firm has a market capitalization of $4.25 billion, a price-to-earnings ratio of 5.92, a PEG ratio of 2.04 and a beta of 1.38. The firm's fifty day simple moving average is $19.63 and its 200-day simple moving average is $20.45.

Bath & Body Works (NYSE:BBWI - Get Free Report) last announced its quarterly earnings results on Wednesday, May 27th. The company reported $0.32 earnings per share for the quarter, beating analysts' consensus estimates of $0.29 by $0.03. The firm had revenue of $1.38 billion during the quarter, compared to analysts' expectations of $1.36 billion. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. Bath & Body Works's quarterly revenue was down 3.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.49 earnings per share. Bath & Body Works has set its Q2 2026 guidance at 0.300-0.300 EPS and its FY 2026 guidance at 2.400-2.650 EPS. On average, analysts predict that Bath & Body Works will post 2.63 earnings per share for the current fiscal year.

Bath & Body Works Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 3.8%. The ex-dividend date was Friday, June 5th. Bath & Body Works's payout ratio is presently 22.47%.

Hedge Funds Weigh In On Bath & Body Works

Large investors have recently made changes to their positions in the stock. Royal Bank of Canada grew its position in Bath & Body Works by 92.8% during the first quarter. Royal Bank of Canada now owns 59,877 shares of the company's stock worth $1,815,000 after buying an additional 28,815 shares during the period. Goldman Sachs Group Inc. lifted its position in shares of Bath & Body Works by 15.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 645,970 shares of the company's stock valued at $19,586,000 after acquiring an additional 87,529 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Bath & Body Works by 7.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 562,757 shares of the company's stock worth $17,063,000 after acquiring an additional 36,684 shares in the last quarter. Intech Investment Management LLC acquired a new stake in shares of Bath & Body Works in the 1st quarter worth approximately $1,155,000. Finally, Geneos Wealth Management Inc. grew its holdings in shares of Bath & Body Works by 217.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company's stock worth $35,000 after acquiring an additional 801 shares during the period. Hedge funds and other institutional investors own 95.14% of the company's stock.

About Bath & Body Works

Bath & Body Works, Inc is a leading specialty retailer focused on personal care, home fragrance and complementary products. Through its flagship Bath & Body Works brand, the company offers a diverse assortment of shower gels, lotions, fragrance mists, candles and home fragrance items. Its product portfolio also includes the White Barn Candle Co range of premium scented candles and diffusers. Bath & Body Works serves consumers through a combination of brick-and-mortar stores and e-commerce platforms, delivering seasonal collections, limited-edition releases and signature scent lines.

Founded in 1990 as part of Limited Brands (now L Brands), Bath & Body Works opened its first store in New Albany, Ohio, and quickly expanded across the United States.

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