BJ's Wholesale Club (NYSE:BJ) Hits New 52-Week Low - Should You Sell?

Key Points

• BJ’s Wholesale Club hit a new 52-week low, trading as low as $83.21 after closing at $85.22 the previous day. The stock was down about 1.6% on the session.
• Despite the weak share price, the company recently beat quarterly expectations, reporting EPS of $1.10 versus $1.04 expected and revenue of $5.66 billion versus $5.44 billion estimated. Revenue rose 9.9% year over year.
• Analysts remain cautious overall, with BJ carrying a consensus “Hold” rating and an average price target of $105.27. Insider selling has also been notable, including share sales by the CEO and an EVP in recent months.

BJ's Wholesale Club Holdings, Inc. (NYSE:BJ - Get Free Report)'s share price reached a new 52-week low during trading on Monday . The stock traded as low as $83.21 and last traded at $84.1220, with a volume of 1084174 shares changing hands. The stock had previously closed at $85.22.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on BJ shares. Bank of America started coverage on BJ's Wholesale Club in a research note on Wednesday, May 20th. They issued a "neutral" rating and a $110.00 price target on the stock. JPMorgan Chase & Co. upped their price objective on shares of BJ's Wholesale Club from $90.00 to $98.00 and gave the company a "neutral" rating in a research note on Tuesday, May 26th. Citigroup cut their price objective on shares of BJ's Wholesale Club from $118.00 to $100.00 and set a "buy" rating on the stock in a report on Tuesday, May 26th. William Blair reissued a "mixed" rating on shares of BJ's Wholesale Club in a research report on Thursday, March 5th. Finally, Evercore restated a "positive" rating on shares of BJ's Wholesale Club in a report on Thursday, March 5th. Nine analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, BJ's Wholesale Club presently has a consensus rating of "Hold" and an average target price of $105.27.

BJ's Wholesale Club Stock Down 1.6%

The firm has a market capitalization of $10.71 billion, a PE ratio of 19.31, a price-to-earnings-growth ratio of 3.18 and a beta of 0.23. The company has a current ratio of 0.73, a quick ratio of 0.18 and a debt-to-equity ratio of 0.19. The firm has a 50-day moving average of $91.42 and a two-hundred day moving average of $94.02.

BJ's Wholesale Club (NYSE:BJ - Get Free Report) last posted 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 firm had revenue of $5.66 billion during the quarter, compared to the consensus estimate of $5.44 billion. BJ's Wholesale Club had a return on equity of 26.67% and a net margin of 2.62%.The firm's quarterly revenue was up 9.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.14 earnings per share. BJ's Wholesale Club has set its FY 2026 guidance at 4.400-4.600 EPS. On average, equities research analysts forecast that BJ's Wholesale Club Holdings, Inc. will post 4.51 EPS for the current year.

Insider Activity

In related news, CEO Robert W. Eddy sold 8,000 shares of the stock in a transaction that occurred 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 owned 306,330 shares of the company's stock, valued at approximately $27,882,156.60. This represents a 2.55% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Scott Schmadeke sold 16,500 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $92.17, for a total transaction of $1,520,805.00. Following the completion of the transaction, the executive vice president owned 20,471 shares in the company, valued at $1,886,812.07. The trade was a 44.63% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 26,550 shares of company stock valued at $2,435,904 in the last three months. Corporate insiders own 1.10% of the company's stock.

Institutional Investors Weigh In On BJ's Wholesale Club

Institutional investors have recently bought and sold shares of the business. BOK Financial Private Wealth Inc. acquired a new position in shares of BJ's Wholesale Club during the 4th quarter valued at $25,000. Strive Financial Group LLC acquired a new stake in BJ's Wholesale Club in the 4th quarter valued at $25,000. Parkside Financial Bank & Trust increased its holdings in BJ's Wholesale Club by 147.9% in the 4th quarter. Parkside Financial Bank & Trust now owns 290 shares of the company's stock valued at $26,000 after purchasing an additional 173 shares in the last quarter. Essential Partners LLC raised its position in BJ's Wholesale Club by 81.2% in the first quarter. Essential Partners LLC now owns 290 shares of the company's stock valued at $29,000 after purchasing an additional 130 shares during the period. Finally, Sunbelt Securities Inc. purchased a new position in BJ's Wholesale Club in the third quarter valued at about $34,000. 98.60% of the stock is currently owned by hedge funds and other institutional investors.

About BJ's Wholesale Club

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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