Callodine Capital Management LP Invests $19.60 Million in Bath & Body Works, Inc. $BBWI

Key Points

• Callodine Capital Management opened a new position in Bath & Body Works during the first quarter, buying 1,050,000 shares worth about $19.6 million. The stake represents about 1.4% of Callodine’s portfolio.
• Bath & Body Works reported better-than-expected quarterly results, with EPS of $0.32 versus $0.29 expected and revenue of $1.38 billion versus $1.36 billion expected. However, revenue was still down 3.2% year over year.
• The company pays a 4.0% dividend yield and has a consensus analyst rating of Hold with an average price target of $22. Shares recently traded around $19.92, near both the 50-day and 200-day moving averages.

Callodine Capital Management LP acquired a new position in shares of Bath & Body Works, Inc. (NYSE:BBWI - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 1,050,000 shares of the company's stock, valued at approximately $19,604,000. Bath & Body Works accounts for about 1.4% of Callodine Capital Management LP's investment portfolio, making the stock its 28th biggest holding. Callodine Capital Management LP owned 0.52% of Bath & Body Works as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also made changes to their positions in BBWI. AQR Capital Management LLC increased its holdings in Bath & Body Works by 132.5% in the 4th quarter. AQR Capital Management LLC now owns 11,445,928 shares of the company's stock valued at $229,834,000 after buying an additional 6,523,960 shares during the period. Norges Bank bought a new position in shares of Bath & Body Works during the 4th quarter worth about $55,504,000. Balyasny Asset Management L.P. bought a new position in shares of Bath & Body Works during the 4th quarter worth about $54,785,000. Renaissance Technologies LLC boosted its position in shares of Bath & Body Works by 885.7% during the 1st quarter. Renaissance Technologies LLC now owns 2,732,733 shares of the company's stock valued at $51,020,000 after acquiring an additional 2,455,500 shares in the last quarter. Finally, Bank of America Corp DE increased its stake in Bath & Body Works by 86.9% in the third quarter. Bank of America Corp DE now owns 3,399,390 shares of the company's stock valued at $87,568,000 after acquiring an additional 1,580,176 shares during the period. Institutional investors and hedge funds own 95.14% of the company's stock.

Bath & Body Works Stock Up 3.0%

Bath & Body Works stock opened at $19.92 on Friday. The stock has a 50-day simple moving average of $19.82 and a 200 day simple moving average of $20.44. The stock has a market capitalization of $4.02 billion, a price-to-earnings ratio of 5.60, a P/E/G ratio of 1.97 and a beta of 1.38. Bath & Body Works, Inc. has a 12-month low of $14.27 and a 12-month high of $32.32.

Bath & Body Works (NYSE:BBWI - Get Free Report) last issued its quarterly earnings data on Wednesday, May 27th. The company reported $0.32 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.03. The firm had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.36 billion. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. The company's revenue was down 3.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.49 EPS. 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. As a group, sell-side analysts anticipate that Bath & Body Works, Inc. will post 2.63 EPS for the current year.

Bath & Body Works Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, June 19th. Stockholders of record on Friday, June 5th were paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 4.0%. The ex-dividend date of this dividend was Friday, June 5th. Bath & Body Works's dividend payout ratio is 22.47%.

Analysts Set New Price Targets

BBWI has been the subject of several recent research reports. Piper Sandler assumed coverage on shares of Bath & Body Works in a research report on Friday, May 15th. They issued a "neutral" rating and a $20.00 price target for the company. Telsey Advisory Group decreased their price objective on Bath & Body Works from $25.00 to $22.00 and set a "market perform" rating on the stock in a report on Thursday, May 28th. Barclays lowered their price objective on Bath & Body Works from $25.00 to $23.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 28th. Weiss Ratings upgraded Bath & Body Works from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, July 9th. Finally, TD Cowen raised their target price on Bath & Body Works from $20.00 to $25.00 and gave the stock a "buy" rating in a research report on Thursday, May 28th. Three analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $22.00.

About Bath & Body Works

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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