BJ's Wholesale Club (NYSE:BJ) Stock Price Down 6% - Here's Why

Key Points

• BJ's Wholesale Club's stock price decreased by 6%, trading at around $101.44 after hitting a low of $101.45, with trading volume down 61% from its average.
• Several research firms have adjusted their price targets for BJ's, with Citigroup setting a new target of $43.00 while Robert W. Baird raised theirs to $130.00, showing a general trend of increased valuations.
• Insider trading activity included Director Steven L. Ortega purchasing 1,740 shares at an average price of $114.60, while EVP Paul Cichocki sold 58,436 shares at about $110.08, indicating mixed sentiment among company insiders.

BJ's Wholesale Club Holdings, Inc. (NYSE:BJ - Get Free Report) fell 6% during trading on Wednesday . The stock traded as low as $101.45 and last traded at $101.44. 703,315 shares changed hands during mid-day trading, a decline of 61% from the average session volume of 1,820,337 shares. The stock had previously closed at $107.89.

Analysts Set New Price Targets

Several research firms have recently commented on BJ. Citigroup increased their price objective on BJ's Wholesale Club from $40.00 to $43.00 and gave the company a "neutral" rating in a report on Wednesday, July 23rd. Robert W. Baird increased their price objective on BJ's Wholesale Club from $125.00 to $130.00 and gave the company an "outperform" rating in a report on Friday, May 23rd. Evercore ISI increased their price target on BJ's Wholesale Club from $115.00 to $117.00 and gave the company an "in-line" rating in a research note on Tuesday. Loop Capital restated a "hold" rating and issued a $120.00 price target (up previously from $110.00) on shares of BJ's Wholesale Club in a research note on Friday, May 23rd. Finally, Wall Street Zen upgraded BJ's Wholesale Club from a "hold" rating to a "buy" rating in a research note on Saturday, May 24th. Nine research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the stock. According to data from MarketBeat.com, BJ's Wholesale Club presently has a consensus rating of "Moderate Buy" and an average target price of $111.41.

BJ's Wholesale Club Price Performance

The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.14 and a current ratio of 0.77. The company has a market cap of $13.68 billion, a P/E ratio of 24.09, a P/E/G ratio of 2.97 and a beta of 0.43. The firm has a 50 day moving average price of $108.16 and a two-hundred day moving average price of $109.84.

BJ's Wholesale Club (NYSE:BJ - Get Free Report) last issued its quarterly earnings data on Thursday, May 22nd. The company reported $1.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.91 by $0.23. BJ's Wholesale Club had a return on equity of 31.98% and a net margin of 2.76%. The business had revenue of $5.15 billion for the quarter, compared to analysts' expectations of $5.18 billion. During the same quarter in the prior year, the firm posted $0.85 EPS. The firm's quarterly revenue was up 4.8% on a year-over-year basis. On average, analysts predict that BJ's Wholesale Club Holdings, Inc. will post 3.96 EPS for the current fiscal year.

Insiders Place Their Bets

In other BJ's Wholesale Club news, Director Steven L. Ortega purchased 1,740 shares of the stock in a transaction on Tuesday, May 27th. The shares were purchased at an average price of $114.60 per share, with a total value of $199,404.00. Following the acquisition, the director directly owned 8,641 shares in the company, valued at approximately $990,258.60. The trade was a 25.21% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Paul Cichocki sold 58,436 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $110.08, for a total value of $6,432,634.88. Following the transaction, the executive vice president directly owned 114,127 shares in the company, valued at approximately $12,563,100.16. This represents a 33.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 138,061 shares of company stock worth $15,027,745 in the last quarter. 1.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On BJ's Wholesale Club

Large investors have recently modified their holdings of the company. IFP Advisors Inc grew its position in BJ's Wholesale Club by 22.0% during the 1st quarter. IFP Advisors Inc now owns 510 shares of the company's stock worth $58,000 after acquiring an additional 92 shares during the last quarter. Fulton Bank N.A. boosted its position in shares of BJ's Wholesale Club by 1.9% during the second quarter. Fulton Bank N.A. now owns 5,174 shares of the company's stock valued at $558,000 after purchasing an additional 98 shares in the last quarter. Louisiana State Employees Retirement System boosted its position in shares of BJ's Wholesale Club by 0.3% during the second quarter. Louisiana State Employees Retirement System now owns 37,100 shares of the company's stock valued at $4,000,000 after purchasing an additional 100 shares in the last quarter. State of Michigan Retirement System boosted its holdings in BJ's Wholesale Club by 0.3% in the second quarter. State of Michigan Retirement System now owns 31,715 shares of the company's stock worth $3,420,000 after acquiring an additional 100 shares in the last quarter. Finally, Greenleaf Trust boosted its holdings in BJ's Wholesale Club by 4.3% in the first quarter. Greenleaf Trust now owns 2,450 shares of the company's stock worth $280,000 after acquiring an additional 101 shares in the last quarter. 98.60% of the stock is owned by hedge funds and other institutional investors.

About BJ's Wholesale Club

BJ's Wholesale Club Holdings, Inc engages in the operation of membership warehouse clubs. Its product categories include grocery, household and pet, television and electronics, furniture, computer and tablets, patio and outdoor living, lawn and garden, baby and kids, toys, home, health and beauty, appliances, and jewelry.

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