Bath & Body Works (NYSE:BBWI) Trading Up 4% - Should You Buy?

Bath & Body Works, Inc. (NYSE:BBWI - Get Free Report) shares rose 4% during mid-day trading on Monday . The company traded as high as $31.04 and last traded at $30.75. Approximately 1,289,280 shares traded hands during trading, a decline of 75% from the average daily volume of 5,155,768 shares. The stock had previously closed at $29.58.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on BBWI. Piper Sandler upgraded shares of Bath & Body Works from a "neutral" rating to an "overweight" rating and lowered their price target for the stock from $38.00 to $35.00 in a report on Wednesday, April 9th. Citigroup decreased their target price on Bath & Body Works from $48.00 to $36.00 and set a "buy" rating for the company in a research note on Monday, April 7th. Wells Fargo & Company dropped their price target on Bath & Body Works from $48.00 to $40.00 and set an "overweight" rating on the stock in a research note on Wednesday. Cowen reaffirmed a "buy" rating on shares of Bath & Body Works in a research report on Thursday, February 27th. Finally, Robert W. Baird boosted their target price on shares of Bath & Body Works from $45.00 to $47.00 and gave the company an "outperform" rating in a research report on Friday, February 28th. Four research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $42.19.

Bath & Body Works Stock Performance

The company's 50 day moving average price is $30.42 and its 200-day moving average price is $33.82. The stock has a market cap of $6.64 billion, a P/E ratio of 7.60, a price-to-earnings-growth ratio of 0.92 and a beta of 1.69.

Bath & Body Works (NYSE:BBWI - Get Free Report) last posted its quarterly earnings data on Thursday, February 27th. The company reported $2.09 EPS for the quarter, beating the consensus estimate of $2.04 by $0.05. Bath & Body Works had a net margin of 12.43% and a negative return on equity of 44.03%. The firm had revenue of $2.79 billion during the quarter, compared to analyst estimates of $2.78 billion. On average, analysts forecast that Bath & Body Works, Inc. will post 3.3 earnings per share for the current fiscal year.

Bath & Body Works Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 7th. Shareholders of record on Friday, February 21st were given a $0.20 dividend. The ex-dividend date was Friday, February 21st. This represents a $0.80 annualized dividend and a yield of 2.57%. Bath & Body Works's dividend payout ratio is currently 21.98%.

Bath & Body Works announced that its board has approved a share buyback program on Thursday, February 27th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 6.4% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Bath & Body Works

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in Bath & Body Works by 0.7% in the fourth quarter. Vanguard Group Inc. now owns 28,199,787 shares of the company's stock valued at $1,093,306,000 after acquiring an additional 208,036 shares during the last quarter. T. Rowe Price Investment Management Inc. grew its holdings in Bath & Body Works by 4.3% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 10,235,086 shares of the company's stock valued at $396,815,000 after purchasing an additional 422,973 shares during the period. Price T Rowe Associates Inc. MD increased its position in Bath & Body Works by 5.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 8,494,089 shares of the company's stock worth $329,317,000 after buying an additional 445,887 shares during the last quarter. Victory Capital Management Inc. raised its stake in shares of Bath & Body Works by 14,732.0% in the first quarter. Victory Capital Management Inc. now owns 6,798,108 shares of the company's stock valued at $206,119,000 after buying an additional 6,752,274 shares during the period. Finally, Alliancebernstein L.P. lifted its position in shares of Bath & Body Works by 35.6% during the 4th quarter. Alliancebernstein L.P. now owns 5,178,447 shares of the company's stock valued at $200,768,000 after buying an additional 1,360,264 shares during the last quarter. 95.14% of the stock is owned by hedge funds and other institutional investors.

Bath & Body Works Company Profile

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.