BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• BJ's Wholesale Club has a consensus analyst rating of "Hold" from 18 brokerages, with an average 12-month price target of about $105.27.
• The company recently reported quarterly earnings of $1.10 per share on $5.66 billion in revenue, beating analyst expectations and posting 9.9% year-over-year revenue growth.
• Insider selling has been notable, including shares sold by EVP Scott Schmadeke and CEO Robert W. Eddy, while institutional investors remain heavily involved and own 98.6% of the stock.

Shares of BJ's Wholesale Club Holdings, Inc. (NYSE:BJ - Get Free Report) have been given a consensus rating of "Hold" by the eighteen ratings firms that are presently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, eight have assigned a hold recommendation and nine have assigned a buy recommendation to the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $105.2667.

A number of equities research analysts recently issued reports on BJ shares. Evercore reaffirmed a "positive" rating on shares of BJ's Wholesale Club in a research note on Thursday, March 5th. William Blair reaffirmed a "mixed" rating on shares of BJ's Wholesale Club in a research note on Thursday, March 5th. Bank of America started coverage on shares of BJ's Wholesale Club in a research note on Wednesday, May 20th. They set a "neutral" rating and a $110.00 price target on the stock. DA Davidson upped their price target on shares of BJ's Wholesale Club from $110.00 to $114.00 and gave the company a "buy" rating in a research note on Thursday, March 5th. Finally, Citigroup decreased their price target on shares of BJ's Wholesale Club from $118.00 to $100.00 and set a "buy" rating on the stock in a research note on Tuesday, May 26th.

BJ's Wholesale Club Price Performance

BJ's Wholesale Club stock opened at $87.23 on Wednesday. The company has a market cap of $11.14 billion, a price-to-earnings ratio of 20.05, a PEG ratio of 3.33 and a beta of 0.23. The firm's fifty day moving average is $90.68 and its 200 day moving average is $93.83. The company has a quick ratio of 0.18, a current ratio of 0.73 and a debt-to-equity ratio of 0.19. BJ's Wholesale Club has a 52-week low of $83.21 and a 52-week high of $110.92.

BJ's Wholesale Club (NYSE:BJ - Get Free Report) last released its quarterly earnings results on Friday, May 22nd. The company reported $1.10 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.04 by $0.06. The company had revenue of $5.66 billion for the quarter, compared to the consensus estimate of $5.44 billion. BJ's Wholesale Club had a net margin of 2.62% and a return on equity of 26.67%. BJ's Wholesale Club's revenue was up 9.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.14 earnings per share. BJ's Wholesale Club has set its FY 2026 guidance at 4.400-4.600 EPS. Sell-side analysts forecast that BJ's Wholesale Club will post 4.51 EPS for the current fiscal year.

Insider Activity

In other news, EVP Scott Schmadeke sold 16,500 shares of the stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $92.17, for a total value of $1,520,805.00. Following the sale, the executive vice president owned 20,471 shares of the company's stock, valued at approximately $1,886,812.07. This represents a 44.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Robert W. Eddy sold 8,000 shares of the stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $91.02, for a total transaction of $728,160.00. Following the completion of the sale, the chief executive officer directly owned 306,330 shares in the company, valued at approximately $27,882,156.60. This represents a 2.55% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 26,550 shares of company stock valued at $2,435,905. 1.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On BJ's Wholesale Club

Several hedge funds and other institutional investors have recently made changes to their positions in BJ. Victory Capital Management Inc. raised its stake in shares of BJ's Wholesale Club by 57.2% in the fourth quarter. Victory Capital Management Inc. now owns 12,930,288 shares of the company's stock valued at $1,164,114,000 after acquiring an additional 4,704,423 shares during the period. Norges Bank purchased a new stake in shares of BJ's Wholesale Club in the fourth quarter valued at $151,765,000. Danica Pension Livsforsikringsaktieselskab purchased a new stake in shares of BJ's Wholesale Club in the third quarter valued at $110,523,000. State Street Corp raised its stake in shares of BJ's Wholesale Club by 25.4% in the third quarter. State Street Corp now owns 5,082,478 shares of the company's stock valued at $473,941,000 after acquiring an additional 1,028,779 shares during the period. Finally, Wellington Management Group LLP raised its stake in shares of BJ's Wholesale Club by 32.9% in the third quarter. Wellington Management Group LLP now owns 3,272,839 shares of the company's stock valued at $305,192,000 after acquiring an additional 809,890 shares during the period. Hedge funds and other institutional investors own 98.60% of the company's stock.

BJ's Wholesale Club Company Profile

BJ's Wholesale Club, headquartered in Westborough, Massachusetts, is a membership-based warehouse retailer offering a wide range of products and services primarily to small businesses and individual consumers. The company operates large-format clubs that provide value-priced groceries, health and beauty products, electronics, home goods, furniture, seasonal items and automotive supplies. In addition to its in-club offerings, BJ's features fuel stations at many locations and operates an e-commerce platform for online ordering and home delivery.

Founded in 1984 as a division of Zayre Corp., BJ's Wholesale Club quickly expanded throughout the Northeastern United States.

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