Bath & Body Works (NYSE:BBWI) Shares Gap Up Following Analyst Upgrade

Key Points

• Bath & Body Works shares jumped 6.5%, opening at $19.55 after JPMorgan raised its price target from $22 to $24 while maintaining a neutral rating.
• Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $22.57; ratings include four Buys, thirteen Holds, and one Sell.
• Institutional ownership stands at 95.14%, while the company reported better-than-expected quarterly earnings and declared a $0.20-per-share quarterly dividend, representing a 4.0% annualized yield.

Bath & Body Works, Inc. (NYSE:BBWI - Get Free Report)'s stock price gapped up prior to trading on Tuesday after JPMorgan Chase & Co. raised their price target on the stock from $22.00 to $24.00. The stock had previously closed at $18.81, but opened at $19.55. JPMorgan Chase & Co. currently has a neutral rating on the stock. Bath & Body Works shares last traded at $19.7550, with a volume of 677,864 shares traded.

A number of other equities research analysts have also weighed in on the company. Morgan Stanley reissued an "equal weight" rating and issued a $22.00 target price on shares of Bath & Body Works in a research note on Monday, July 6th. The Goldman Sachs Group downgraded Bath & Body Works from a "neutral" rating to a "sell" rating and lowered their price objective for the company from $23.00 to $19.00 in a research report on Wednesday, July 8th. TD Cowen raised their target price on shares of Bath & Body Works from $20.00 to $25.00 and gave the stock a "buy" rating in a report on Thursday, May 28th. Weiss Ratings upgraded shares of Bath & Body Works from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, July 9th. Finally, Jefferies Financial Group increased their price target on shares of Bath & Body Works from $22.00 to $23.00 and gave the company a "hold" rating in a research report on Tuesday, July 28th. Four research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Bath & Body Works currently has an average rating of "Hold" and an average price target of $22.57.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in Bath & Body Works in the second quarter worth $449,065,000. AQR Capital Management LLC boosted its holdings in shares of Bath & Body Works by 132.5% during the 4th quarter. AQR Capital Management LLC now owns 11,445,928 shares of the company's stock valued at $229,834,000 after buying an additional 6,523,960 shares in the last quarter. Norges Bank purchased a new stake in shares of Bath & Body Works in the 4th quarter worth about $55,504,000. Balyasny Asset Management L.P. purchased a new stake in shares of Bath & Body Works in the 4th quarter worth about $54,785,000. Finally, Bank of America Corp DE bought a new position in shares of Bath & Body Works in the 2nd quarter worth about $62,249,000. 95.14% of the stock is currently owned by institutional investors.

Bath & Body Works Trading Up 6.5%

The company's 50 day moving average is $20.38 and its 200-day moving average is $20.14. The company has a market capitalization of $4.04 billion, a P/E ratio of 5.61, a price-to-earnings-growth ratio of 1.92 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI - Get Free Report) last issued its quarterly earnings results on Wednesday, May 27th. The company reported $0.32 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.03. Bath & Body Works had a negative return on equity of 45.34% and a net margin of 10.03%.The firm had revenue of $1.38 billion for the quarter, compared to analysts' expectations of $1.36 billion. During the same period in the previous year, the firm posted $0.49 EPS. The business's revenue for the quarter was down 3.2% compared to the same quarter last year. 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. Analysts predict that Bath & Body Works, Inc. will post 2.63 EPS for the current fiscal year.

Bath & Body Works Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date is Friday, August 21st. Bath & Body Works's dividend payout ratio (DPR) is currently 22.47%.

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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