Primecap Management Co. CA Makes New $7.11 Million Investment in Bath & Body Works, Inc. $BBWI

Key Points

• Primecap Management initiated a $7.11 million Bath & Body Works position, buying 307,380 shares, while institutional investors collectively own 95.14% of the company.
• Bath & Body Works beat second-quarter earnings expectations with EPS of $0.62 versus $0.24 expected and revenue of $1.51 billion, but sales declined 2.3% year over year. Management raised fiscal 2026 EPS guidance to $2.60–$2.80, citing stronger digital demand and cost-saving initiatives.
• Shares recently opened at $18.92, below the analyst consensus price target of $22.57; analysts overall maintain a “Hold” consensus. The company also declared a quarterly dividend of $0.20 per share, implying a 4.2% annualized yield.

Primecap Management Co. CA purchased a new stake in shares of Bath & Body Works, Inc. (NYSE:BBWI - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 307,380 shares of the company's stock, valued at approximately $7,110,000. Primecap Management Co. CA owned approximately 0.15% of Bath & Body Works at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Global Retirement Partners LLC acquired a new position in shares of Bath & Body Works in the fourth quarter valued at approximately $31,000. Activest Wealth Management acquired a new stake in Bath & Body Works during the 4th quarter worth approximately $32,000. Geneos Wealth Management Inc. grew its holdings in Bath & Body Works by 217.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company's stock worth $35,000 after acquiring an additional 801 shares during the last quarter. Parallel Advisors LLC grew its holdings in Bath & Body Works by 42.6% during 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 during the last quarter. Finally, Danske Bank A S acquired a new position in Bath & Body Works in the 3rd quarter valued at approximately $39,000. 95.14% of the stock is currently owned by institutional investors.

Bath & Body Works Stock Performance

Shares of NYSE BBWI opened at $18.92 on Thursday. The company's 50 day moving average price is $20.36 and its 200-day moving average price is $20.01. Bath & Body Works, Inc. has a 52-week low of $14.27 and a 52-week high of $32.32. The company has a market capitalization of $3.81 billion, a P/E ratio of 5.31, a price-to-earnings-growth ratio of 1.73 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI - Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.38. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. The company had revenue of $1.51 billion during the quarter, compared to analysts' expectations of $1.50 billion. During the same period in the prior year, the company posted $0.30 earnings per share. Bath & Body Works's revenue for the quarter was down 2.3% compared to the same quarter last year. Bath & Body Works has set its Q3 2026 guidance at 0.070-0.120 EPS and its FY 2026 guidance at 2.600-2.800 EPS. Analysts forecast that Bath & Body Works, Inc. will post 2.63 earnings per share for the current year.

Bath & Body Works Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date is Friday, August 21st. Bath & Body Works's dividend payout ratio (DPR) is presently 22.47%.

Trending Headlines about Bath & Body Works

Here are the key news stories impacting Bath & Body Works this week:

• Positive Sentiment: Bath & Body Works reported second-quarter adjusted EPS of $0.62, well above the $0.24 analyst consensus, while revenue of $1.51 billion slightly exceeded expectations. Bath & Body Works Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $2.60-$2.80, above its previous range of $2.40-$2.65 and ahead of the roughly $2.56 consensus. The company also reiterated revenue expectations of approximately $7.5-$7.6 billion. Bath & Body Works Raises Earnings Outlook on Higher Profit
• Positive Sentiment: Digital demand and direct-channel sales growth are offsetting weaker physical-store traffic. Management also highlighted ongoing transformation initiatives, including planned cost savings, stronger cash flow and potential balance-sheet improvement that could support future shareholder returns. Bath & Body Works lifts annual profit forecast
• Neutral Sentiment: The earnings call and bullish commentary frame BBWI as a discounted turnaround opportunity, but investors will likely require sustained sales growth and execution before assigning a higher valuation.
• Negative Sentiment: Second-quarter net sales declined 2.3% year over year, and third-quarter adjusted EPS guidance of only $0.07-$0.12 is substantially below the approximately $0.27 consensus. The outlook reflects continued near-term pressure from store traffic and seasonality. Bath & Body Works falls despite earnings beat
• Negative Sentiment: Heavy put-option activity ahead of the report signaled elevated bearish hedging and helps explain the stock’s volatility despite the earnings beat.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Citigroup upgraded shares of Bath & Body Works from a "neutral" rating to a "buy" rating and set a $25.00 price target on the stock in a report on Tuesday, August 18th. Weiss Ratings upgraded Bath & Body Works from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, July 9th. Jefferies Financial Group raised their target price on Bath & Body Works from $22.00 to $23.00 and gave the stock a "hold" rating in a research report on Tuesday, July 28th. Morgan Stanley reaffirmed an "equal weight" rating and set a $22.00 target price on shares of Bath & Body Works in a report on Monday, July 6th. Finally, Wells Fargo & Company upped their price target on Bath & Body Works from $25.00 to $26.00 and gave the company an "overweight" rating in a research report on Tuesday, June 23rd. Four analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Bath & Body Works has a consensus rating of "Hold" and an average price target of $22.57.

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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