Bath & Body Works (NYSE:BBWI) Stock Price Down 3.3% - Should You Sell?

Key Points

• BBWI shares fell 3.3% to about $18.54, trading well below their 50-day and 200-day moving averages of $20.46 and $20.06, respectively.
• Analyst sentiment is largely neutral: 13 analysts rate the stock Hold, four rate it Buy, and one rates it Sell. The consensus price target is $22.57, although recent targets range from $19 to $26.
• The company beat quarterly earnings and revenue estimates, but revenue declined 3.2% year over year and EPS fell from the prior-year period. BBWI also offers a $0.20 quarterly dividend, equivalent to a 4.3% yield.

Shares of Bath & Body Works, Inc. (NYSE:BBWI - Get Free Report) dropped 3.3% on Tuesday . The company traded as low as $18.52 and last traded at $18.5390. 1,114,994 shares changed hands during mid-day trading, a decline of 80% from the average daily volume of 5,640,770 shares. The stock had previously closed at $19.17.

Wall Street Analyst Weigh In

BBWI has been the subject of a number of recent research reports. Barclays cut their price target on Bath & Body Works from $25.00 to $23.00 and set an "equal weight" rating for the company in a research note on Thursday, May 28th. Weiss Ratings raised shares of Bath & Body Works from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, July 9th. The Goldman Sachs Group lowered shares of Bath & Body Works from a "neutral" rating to a "sell" rating and cut their target price for the company from $23.00 to $19.00 in a research report on Wednesday, July 8th. JPMorgan Chase & Co. upped their target price on shares of Bath & Body Works from $22.00 to $24.00 and gave the company a "neutral" rating in a report on Tuesday, August 18th. Finally, Wells Fargo & Company lifted their price target on shares of Bath & Body Works from $25.00 to $26.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 23rd. Four analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Bath & Body Works currently has an average rating of "Hold" and a consensus target price of $22.57.

Bath & Body Works Price Performance

The stock's 50-day simple moving average is $20.46 and its two-hundred day simple moving average is $20.06. The firm has a market capitalization of $3.71 billion, a P/E ratio of 5.17, a price-to-earnings-growth ratio of 1.92 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI - Get Free Report) last announced its quarterly earnings data on Wednesday, May 27th. The company reported $0.32 EPS for the quarter, beating the consensus estimate of $0.29 by $0.03. The firm had revenue of $1.38 billion for the quarter, compared to the consensus estimate 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 period last 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. On average, analysts forecast that Bath & Body Works, Inc. will post 2.63 earnings per share for the current fiscal year.

Bath & Body Works Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 21st will be given a dividend of $0.20 per share. The ex-dividend date is Friday, August 21st. This represents a $0.80 annualized dividend and a dividend yield of 4.3%. Bath & Body Works's dividend payout ratio (DPR) is currently 22.47%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Global Retirement Partners LLC purchased a new position in shares of Bath & Body Works in the fourth quarter worth $31,000. Activest Wealth Management purchased a new position in Bath & Body Works during the fourth quarter valued at $32,000. Geneos Wealth Management Inc. increased its holdings in Bath & Body Works by 217.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company's stock valued at $35,000 after acquiring an additional 801 shares during the last quarter. Parallel Advisors LLC increased its holdings in Bath & Body Works by 42.6% in the 4th quarter. Parallel Advisors LLC now owns 1,897 shares of the company's stock valued at $38,000 after acquiring an additional 567 shares during the last quarter. Finally, Danske Bank A S purchased a new stake in Bath & Body Works in the 3rd quarter worth $39,000. 95.14% of the stock is owned by hedge funds and other institutional investors.

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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