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Short Interest in L Brands, Inc. (NYSE:LB) Declines By 13.6%

Last updated on Sunday, November 22, 2020 | 2020 MarketBeat

L Brands, Inc. (NYSE:LB) was the target of a large drop in short interest in the month of October. As of October 30th, there was short interest totalling 8,860,000 shares, a drop of 13.6% from the October 15th total of 10,260,000 shares. Currently, 3.8% of the company's shares are sold short. Based on an average daily trading volume, of 4,770,000 shares, the days-to-cover ratio is currently 1.9 days.

NYSE:LB opened at $39.97 on Friday. The company has a market capitalization of $11.11 billion, a price-to-earnings ratio of -13.98, a price-to-earnings-growth ratio of 2.06 and a beta of 1.62. L Brands has a one year low of $8.00 and a one year high of $40.79. The stock has a 50-day simple moving average of $33.40 and a 200 day simple moving average of $24.14.

L Brands (NYSE:LB) last issued its earnings results on Tuesday, November 17th. The specialty retailer reported $1.13 EPS for the quarter, beating the Zacks' consensus estimate of $0.09 by $1.04. L Brands had a negative return on equity of 19.91% and a negative net margin of 6.96%. As a group, analysts expect that L Brands will post 1.26 earnings per share for the current fiscal year.

In related news, insider James L. Bersani sold 28,373 shares of the stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $30.00, for a total value of $851,190.00. Following the transaction, the insider now directly owns 242,339 shares of the company's stock, valued at approximately $7,270,170. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 17.83% of the company's stock.

Hedge funds have recently modified their holdings of the business. Chiron Capital Management LLC acquired a new position in L Brands in the third quarter valued at approximately $35,000. Creative Financial Designs Inc. ADV boosted its stake in L Brands by 268.1% in the third quarter. Creative Financial Designs Inc. ADV now owns 1,491 shares of the specialty retailer's stock valued at $47,000 after acquiring an additional 1,086 shares during the period. Captrust Financial Advisors acquired a new position in shares of L Brands during the second quarter worth approximately $58,000. Global Retirement Partners LLC acquired a new position in shares of L Brands during the third quarter worth approximately $64,000. Finally, Cerebellum GP LLC acquired a new position in shares of L Brands during the third quarter worth approximately $65,000. Institutional investors own 76.89% of the company's stock.

Several research analysts recently weighed in on LB shares. Barclays increased their target price on L Brands from $31.00 to $34.00 and gave the stock an "equal weight" rating in a research report on Monday, November 16th. Jefferies Financial Group raised L Brands from an "underperform" rating to a "hold" rating and raised their price objective for the company from $20.00 to $33.00 in a research report on Wednesday. DA Davidson raised their price objective on L Brands from $14.00 to $29.00 and gave the company a "neutral" rating in a research report on Friday, August 21st. Royal Bank of Canada raised their price objective on L Brands from $30.00 to $42.00 and gave the company a "sector perform" rating in a research report on Friday. They noted that the move was a valuation call. Finally, JPMorgan Chase & Co. raised their price objective on L Brands from $50.00 to $53.00 and gave the company an "overweight" rating in a research report on Thursday. Two research analysts have rated the stock with a sell rating, fifteen have issued a hold rating and ten have given a buy rating to the stock. L Brands presently has a consensus rating of "Hold" and an average target price of $33.76.

About L Brands

L Brands, Inc operates as a specialty retailer of women's intimate and other apparel, personal care, and beauty and home fragrance products. The company operates in three segments: Victoria's Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International. Its products include bras and panties, loungewear, athletic attire, shower gels and lotions, aromatherapy, soaps and sanitizers, and body care accessories.

Further Reading: Hang Seng Index (HSI)

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