Bath & Body Works (NYSE:BBWI) Stock Price Down 6.7% - Time to Sell?

Key Points

• Bath & Body Works shares fell 6.7% to approximately $16.72, below both the 50-day and 200-day moving averages near $19.56.
• Analysts’ consensus rating is “Hold”, with 14 Hold, four Buy, and one Sell rating; the average price target is $22.13, although targets range from $20 to $25.
• The company exceeded quarterly EPS expectations ($0.62 versus $0.24) on $1.51 billion in revenue, but sales declined 2.3% year over year. Bath & Body Works also pays a quarterly dividend of $0.20, equivalent to an approximately 4.8% annual yield.

Bath & Body Works, Inc. (NYSE:BBWI - Get Free Report) traded down 6.7% during trading on Tuesday . The stock traded as low as $16.67 and last traded at $16.7150. Approximately 3,675,094 shares were traded during mid-day trading, a decline of 36% from the average daily volume of 5,782,480 shares. The stock had previously closed at $17.91.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the company. TD Cowen increased their price objective 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. BMO Capital Markets started coverage on Bath & Body Works in a research note on Tuesday, September 8th. They issued a "market perform" rating and a $20.00 target price on the stock. Raymond James Financial reaffirmed a "market perform" rating on shares of Bath & Body Works in a report on Wednesday, May 27th. Citigroup upgraded Bath & Body Works from a "neutral" rating to a "buy" rating and set a $25.00 price target for the company in a research report on Tuesday, August 18th. Finally, Robert W. Baird cut their price objective on Bath & Body Works from $25.00 to $23.00 and set a "neutral" rating for the company in a report on Thursday, August 27th. Four research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $22.13.

Bath & Body Works Trading Down 6.2%

The stock has a 50 day simple moving average of $19.56 and a 200 day simple moving average of $19.57. The firm has a market capitalization of $3.39 billion, a PE ratio of 4.36, a PEG ratio of 1.91 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI - Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The company reported $0.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.24 by $0.38. Bath & Body Works had a negative return on equity of 53.48% and a net margin of 10.83%.The company had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter in the previous year, the business earned $0.30 EPS. Bath & Body Works's revenue 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. As a group, equities analysts anticipate that Bath & Body Works, Inc. will post 2.73 earnings per share for the current year.

Bath & Body Works Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 4th. Stockholders of record on Friday, August 21st were given a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 4.8%. The ex-dividend date of this dividend was Friday, August 21st. Bath & Body Works's payout ratio is currently 20.83%.

Hedge Funds Weigh In On Bath & Body Works

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Chase Investment Counsel Corp acquired a new stake in shares of Bath & Body Works during the 4th quarter worth approximately $1,606,000. Bank of America Corp DE increased its stake in Bath & Body Works by 26.2% during the first quarter. Bank of America Corp DE now owns 2,050,414 shares of the company's stock worth $38,281,000 after acquiring an additional 425,248 shares during the last quarter. BlackRock Inc. acquired a new stake in Bath & Body Works during the second quarter worth $449,065,000. Intech Investment Management LLC raised its position in Bath & Body Works by 462.6% in the fourth quarter. Intech Investment Management LLC now owns 108,766 shares of the company's stock valued at $2,184,000 after purchasing an additional 89,432 shares during the period. Finally, Cibc World Market Inc. acquired a new position in shares of Bath & Body Works in the 4th quarter valued at $2,053,000. 95.14% of the stock is owned by institutional investors.

About Bath & Body Works

Bath & Body Works, Inc is a specialty retailer focused on personal care and home-fragrance products. Its offerings include body lotions and creams, shower gels, fragrance mists, hand soaps and sanitizers, candles, home fragrances, and related seasonal merchandise. The company markets products under the Bath & Body Works and White Barn names.

The company sells its products through a network of company-operated stores, its websites, and other direct channels. Its retail operations primarily serve customers in the United States and Canada, while international markets are reached through franchised, licensed, and other distribution arrangements.

Bath & Body Works traces its origins to 1990 and was formerly part of L Brands, Inc It became an independent publicly traded company in 2021 following the separation of L Brands' Victoria's Secret business.

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