Bath & Body Works (NYSE:BBWI) Stock Price Up 4.3% - Should You Buy?

Key Points

• Bath & Body Works shares rose 4.3% to about $18.77, with roughly 4.27 million shares traded. Despite the gain, the stock remains below its 200-day moving average and analysts’ consensus price target of $22.13.
• Analyst sentiment is largely cautious: 15 analysts rate BBWI a Hold, compared with four Buys and one Sell. Recent price targets range from $20 to $24, while the average rating remains “Hold.”
• The company beat quarterly earnings expectations, reporting $0.62 in EPS versus $0.24 expected, though revenue fell 2.3% year over year. It also pays a quarterly dividend of $0.20, equivalent to an annualized yield of about 4.3%.

Bath & Body Works, Inc. (NYSE:BBWI - Get Free Report)'s stock price traded up 4.3% during mid-day trading on Wednesday. The stock traded as high as $18.71 and last traded at $18.7650. Approximately 4,267,768 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 5,922,687 shares. The stock had previously closed at $18.00.

Analysts Set New Price Targets

BBWI has been the subject of several research analyst reports. Wells Fargo & Company dropped their price target on Bath & Body Works from $26.00 to $24.00 and set an "overweight" rating for the company in a research note on Thursday, August 27th. BMO Capital Markets began coverage on Bath & Body Works in a research report on Tuesday, September 8th. They set a "market perform" rating and a $20.00 price objective on the stock. Robert W. Baird decreased their price objective on Bath & Body Works from $25.00 to $23.00 and set a "neutral" rating on the stock in a report on Thursday, August 27th. Deutsche Bank Aktiengesellschaft set a $22.00 price objective on Bath & Body Works in a report on Thursday, August 27th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Bath & Body Works in a research report on Tuesday, October 6th. Four investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $22.13.

Bath & Body Works Stock Up 4.1%

The firm's fifty day moving average price is $18.17 and its 200-day moving average price is $19.02. The stock has a market cap of $3.78 billion, a P/E ratio of 4.88, a PEG ratio of 0.87 and a beta of 1.40.

Bath & Body Works (NYSE:BBWI - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The company reported $0.62 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.38. The company had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.50 billion. Bath & Body Works had a net margin of 10.83% and a negative return on equity of 53.48%. The firm's revenue was down 2.3% compared to the same quarter last year. During the same period in the prior year, the business posted $0.30 EPS. 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. Sell-side analysts predict that Bath & Body Works, Inc. will post 2.73 earnings per share for the current year.

Bath & Body Works Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, September 4th. Investors of record on Friday, August 21st were paid a $0.20 dividend. The ex-dividend date of this dividend was Friday, August 21st. This represents a $0.80 dividend on an annualized basis and a yield of 4.3%. Bath & Body Works's dividend payout ratio (DPR) is presently 20.83%.

Institutional Trading of Bath & Body Works

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new stake in shares of Bath & Body Works in the second quarter worth $449,065,000. Vaughan Nelson Investment Management L.P. lifted its position in Bath & Body Works by 33.8% during the first quarter. Vaughan Nelson Investment Management L.P. now owns 2,852,040 shares of the company's stock valued at $53,248,000 after purchasing an additional 719,795 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in Bath & Body Works by 34.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,777,576 shares of the company's stock worth $51,857,000 after purchasing an additional 707,449 shares during the last quarter. Renaissance Technologies LLC grew its position in Bath & Body Works by 885.7% in the 1st quarter. Renaissance Technologies LLC now owns 2,732,733 shares of the company's stock worth $51,020,000 after purchasing an additional 2,455,500 shares during the period. Finally, Bank of America Corp DE purchased a new position in shares of Bath & Body Works in the 2nd quarter worth $62,249,000. Institutional investors own 95.14% of the company's stock.

About Bath & Body Works

Bath & Body Works, Inc is a specialty retailer focused on personal care and home fragrance products. Its portfolio includes body lotions and creams, shower products, fragrances, hand soaps and sanitizers, three-wick candles, wall-plug air fresheners, and other home-fragrance items. The company markets products under the Bath & Body Works brand and regularly introduces seasonal and limited-edition collections.

The company sells its products through a network of company-operated stores, its e-commerce website, and other direct channels.

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