Morgan Stanley Cuts BJ's Wholesale Club (NYSE:BJ) Price Target to $115.00

Key Points

• Morgan Stanley has reduced its price target for BJ's Wholesale Club from $125.00 to $115.00, maintaining an "equal weight" rating on the stock, which indicates a potential upside of 18.54% from its previous close.
• Various analysts, including Loop Capital and Roth Capital, have also updated their ratings and price targets for BJ's, reflecting a range of outlooks, with targets between $106.00 to $140.00.
• BJ's Wholesale Club reported $1.14 earnings per share for the last quarter, exceeding estimates, and set its FY 2025 guidance at 4.200-4.35 EPS, slightly below analysts' forecasts of 3.96 for the current fiscal year.

BJ's Wholesale Club (NYSE:BJ - Get Free Report) had its target price reduced by analysts at Morgan Stanley from $125.00 to $115.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's price objective suggests a potential upside of 18.54% from the company's previous close.

Other research analysts also recently issued reports about the stock. Loop Capital reiterated a "hold" rating and set a $120.00 price target (up from $110.00) on shares of BJ's Wholesale Club in a report on Friday, May 23rd. Roth Capital restated a "neutral" rating and issued a $106.00 price objective (up from $101.00) on shares of BJ's Wholesale Club in a report on Wednesday, May 28th. Wells Fargo & Company reiterated an "overweight" rating and set a $127.00 price target (up from $125.00) on shares of BJ's Wholesale Club in a report on Friday, May 23rd. DA Davidson raised their price target on shares of BJ's Wholesale Club from $130.00 to $140.00 and gave the company a "buy" rating in a research report on Friday, May 23rd. Finally, Wall Street Zen lowered shares of BJ's Wholesale Club from a "buy" rating to a "hold" rating in a research note on Saturday, August 16th. Ten analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, BJ's Wholesale Club has an average rating of "Moderate Buy" and an average target price of $114.65.

BJ's Wholesale Club Stock Performance

NYSE BJ traded down $0.0930 during trading on Monday, reaching $97.0170. 313,549 shares of the company's stock were exchanged, compared to its average volume of 1,896,028. BJ's Wholesale Club has a fifty-two week low of $76.33 and a fifty-two week high of $121.10. The stock has a market capitalization of $12.81 billion, a P/E ratio of 22.21, a PEG ratio of 2.69 and a beta of 0.43. The business has a 50 day moving average price of $107.17 and a 200-day moving average price of $110.06. The company has a debt-to-equity ratio of 0.19, a current ratio of 0.79 and a quick ratio of 0.17.

BJ's Wholesale Club (NYSE:BJ - Get Free Report) last issued its quarterly earnings results on Friday, August 22nd. The company reported $1.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.10 by $0.04. BJ's Wholesale Club had a return on equity of 30.40% and a net margin of 2.77%.The business had revenue of $5.38 billion during the quarter, compared to analysts' expectations of $5.49 billion. During the same period in the previous year, the company posted $1.09 earnings per share. The firm's revenue for the quarter was up 3.2% compared to the same quarter last year. BJ's Wholesale Club has set its FY 2025 guidance at 4.200-4.35 EPS. Sell-side analysts forecast that BJ's Wholesale Club will post 3.96 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other BJ's Wholesale Club news, Director Steven L. Ortega acquired 1,740 shares of the business's stock in a transaction on Tuesday, May 27th. The shares were bought at an average price of $114.60 per share, with a total value of $199,404.00. Following the transaction, the director directly owned 8,641 shares of the company's stock, valued at $990,258.60. The trade was a 25.21% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Paul Cichocki sold 58,436 shares of the company's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $110.08, for a total transaction of $6,432,634.88. Following the completion of the transaction, the executive vice president owned 114,127 shares in the company, valued at $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 138,061 shares of company stock valued at $15,027,745 in the last three months. Corporate insiders own 1.40% of the company's stock.

Institutional Investors Weigh In On BJ's Wholesale Club

Several large investors have recently modified their holdings of BJ. Oliver Lagore Vanvalin Investment Group bought a new position in shares of BJ's Wholesale Club during the 2nd quarter worth approximately $26,000. REAP Financial Group LLC boosted its holdings in BJ's Wholesale Club by 152.5% during the second quarter. REAP Financial Group LLC now owns 250 shares of the company's stock worth $27,000 after buying an additional 151 shares in the last quarter. Atlantic Edge Private Wealth Management LLC purchased a new stake in BJ's Wholesale Club during the first quarter worth $33,000. Ameritas Advisory Services LLC purchased a new position in BJ's Wholesale Club during the second quarter valued at $35,000. Finally, HM Payson & Co. purchased a new position in BJ's Wholesale Club during the first quarter valued at $41,000. Institutional investors own 98.60% of the company's stock.

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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