Bath & Body Works (NYSE:BBWI) Stock Price Up 7% - Should You Buy?

Key Points

• Bath & Body Works shares rose 7% in mid-day trading, reaching as high as $20.63 after closing at $19.46 the previous day. Trading volume was far below average, with about 525,396 shares changing hands.
• Recent analyst updates were mixed, but the overall view remains cautious: the stock currently has a consensus Hold rating and a consensus price target of $21.93. TD Cowen was among the more upbeat firms, while Goldman Sachs and others trimmed targets.
• The company reported better-than-expected quarterly earnings of $0.32 per share on revenue of $1.38 billion, and it also announced a quarterly dividend of $0.20 per share. That dividend implies a 3.8% annual yield.

Shares of Bath & Body Works, Inc. (NYSE:BBWI - Get Free Report) rose 7% during mid-day trading on Tuesday . The company traded as high as $20.63 and last traded at $20.83. Approximately 525,396 shares changed hands during mid-day trading, a decline of 91% from the average daily volume of 5,702,871 shares. The stock had previously closed at $19.46.

Analysts Set New Price Targets

A number of research analysts recently weighed in on BBWI shares. The Goldman Sachs Group lowered their target price on shares of Bath & Body Works from $26.00 to $23.00 and set a "neutral" rating on the stock in a research note on Thursday, May 28th. TD Cowen lifted their target price on shares of Bath & Body Works from $20.00 to $25.00 and gave the company a "buy" rating in a research note on Thursday, May 28th. Telsey Advisory Group cut their target price on shares of Bath & Body Works from $25.00 to $22.00 and set a "market perform" rating for the company in a research note on Thursday, May 28th. Raymond James Financial reaffirmed a "market perform" rating on shares of Bath & Body Works in a research note on Wednesday, May 27th. Finally, Weiss Ratings downgraded shares of Bath & Body Works from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, June 2nd. Three investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $21.93.

Bath & Body Works Stock Performance

The company has a market capitalization of $4.23 billion, a P/E ratio of 5.88, a P/E/G ratio of 1.93 and a beta of 1.42. The firm's fifty day moving average is $18.63 and its 200 day moving average is $20.12.

Bath & Body Works (NYSE:BBWI - Get Free Report) last released its earnings results on Wednesday, May 27th. The company reported $0.32 earnings per share 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 business had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.36 billion. During the same quarter last year, the firm posted $0.49 earnings per share. The business's revenue 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. On average, analysts forecast that Bath & Body Works, Inc. will post 2.62 EPS for the current year.

Bath & Body Works Announces Dividend

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

Hedge Funds Weigh In On Bath & Body Works

A number of hedge funds have recently added to or reduced their stakes in the stock. Gabelli Funds LLC grew its stake in Bath & Body Works by 1.2% in the 3rd quarter. Gabelli Funds LLC now owns 47,536 shares of the company's stock worth $1,225,000 after acquiring an additional 542 shares in the last quarter. Parallel Advisors LLC grew its stake in Bath & Body Works by 42.6% in the 4th quarter. Parallel Advisors LLC now owns 1,897 shares of the company's stock worth $38,000 after acquiring an additional 567 shares in the last quarter. State of Michigan Retirement System raised its holdings in shares of Bath & Body Works by 1.2% in the 1st quarter. State of Michigan Retirement System now owns 49,300 shares of the company's stock valued at $920,000 after purchasing an additional 600 shares in the last quarter. Meeder Asset Management Inc. raised its holdings in shares of Bath & Body Works by 28.5% in the 4th quarter. Meeder Asset Management Inc. now owns 2,874 shares of the company's stock valued at $58,000 after purchasing an additional 637 shares in the last quarter. Finally, State of Wyoming raised its holdings in shares of Bath & Body Works by 6.2% in the 2nd quarter. State of Wyoming now owns 11,294 shares of the company's stock valued at $338,000 after purchasing an additional 661 shares in the last quarter. 95.14% of the stock is currently owned by institutional investors.

Bath & Body Works Company Profile

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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