Victoria's Secret & Co. (NYSE:VSXY) Stock Price Up 5.2% - Here's What Happened

Key Points

• Victoria’s Secret shares rose 5.2% to $87.15 in Monday midday trading, though volume was 91% below the average session level.
• Analyst sentiment remains favorable but mixed: the stock has a consensus “Moderate Buy” rating, with an average price target of $89.91. Recent changes included upgrades from Weiss Ratings and Telsey Advisory Group, alongside neutral or downgraded views from other firms.
• The company’s latest quarterly results exceeded expectations, with adjusted EPS of $0.95 versus the $0.77 consensus estimate, while revenue rose 10.4% year over year to $1.61 billion. However, insiders sold more than 1.09 million shares worth approximately $97.4 million over the past three months.

Shares of Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) were up 5.2% during mid-day trading on Monday. The company traded as high as $87.98 and last traded at $87.15. 190,254 shares changed hands during mid-day trading, a decline of 91% from the average session volume of 2,111,427 shares. The stock had previously closed at $82.87.

Analyst Upgrades and Downgrades

A number of research firms recently commented on VSXY. Weiss Ratings upgraded Victoria's Secret & Co. from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday. TD Cowen upped their price objective on Victoria's Secret & Co. from $75.00 to $80.00 and gave the company a "hold" rating in a research note on Tuesday, August 18th. Wall Street Zen lowered Victoria's Secret & Co. from a "buy" rating to a "hold" rating in a research note on Monday, September 21st. UBS Group cut their price objective on Victoria's Secret & Co. from $95.00 to $87.00 and set a "neutral" rating for the company in a research report on Friday, September 4th. Finally, Telsey Advisory Group lifted their target price on Victoria's Secret & Co. from $90.00 to $100.00 and gave the stock an "outperform" rating in a research note on Wednesday, September 2nd. Seven research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, Victoria's Secret & Co. currently has a consensus rating of "Moderate Buy" and an average price target of $89.91.

Victoria's Secret & Co. Price Performance

The company has a market capitalization of $6.98 billion, a P/E ratio of 25.36, a price-to-earnings-growth ratio of 0.56 and a beta of 2.01. The company's 50-day moving average price is $85.03 and its two-hundred day moving average price is $71.71. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.36 and a quick ratio of 0.57.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) last posted its earnings results on Thursday, September 3rd. The company reported $0.95 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.77 by $0.18. The company had revenue of $1.61 billion during the quarter, compared to analysts' expectations of $1.62 billion. Victoria's Secret & Co. had a net margin of 5.46% and a return on equity of 40.43%. The business's quarterly revenue was up 10.4% on a year-over-year basis. As a group, sell-side analysts expect that Victoria's Secret & Co. will post 4.69 EPS for the current year.

Insider Activity

In other news, major shareholder International Pte Ltd Bbrc sold 798,920 shares of the business's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $89.15, for a total transaction of $71,223,718.00. Following the completion of the sale, the insider owned 7,810,631 shares in the company, valued at $696,317,753.65. The trade was a 9.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Melinda R. Mcafee sold 4,500 shares of the business's stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $91.10, for a total value of $409,950.00. Following the sale, the insider owned 166,317 shares of the company's stock, valued at approximately $15,151,478.70. This represents a 2.63% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 1,092,899 shares of company stock worth $97,365,456. Insiders own 0.52% of the company's stock.

Hedge Funds Weigh In On Victoria's Secret & Co.

Institutional investors and hedge funds have recently made changes to their positions in the company. Bbfit Investments PTE Ltd. acquired a new position in shares of Victoria's Secret & Co. during the 4th quarter worth approximately $558,521,000. Squarepoint Ops LLC acquired a new stake in shares of Victoria's Secret & Co. in the second quarter valued at approximately $39,803,000. Baird Financial Group Inc. acquired a new stake in shares of Victoria's Secret & Co. in the second quarter valued at approximately $30,622,000. Bank of America Corp DE raised its position in shares of Victoria's Secret & Co. by 61.9% in the first quarter. Bank of America Corp DE now owns 632,358 shares of the company's stock valued at $29,316,000 after buying an additional 241,660 shares in the last quarter. Finally, Principal Financial Group Inc. boosted its stake in shares of Victoria's Secret & Co. by 39.0% in the first quarter. Principal Financial Group Inc. now owns 530,793 shares of the company's stock valued at $24,608,000 after buying an additional 148,876 shares during the period. Institutional investors and hedge funds own 90.29% of the company's stock.

Victoria's Secret & Co. Company Profile

Victoria's Secret & Co is a specialty retailer focused on women's intimate apparel, lingerie, beauty products, sleepwear, loungewear and related accessories. Its portfolio includes the Victoria's Secret brand, which offers bras, panties, sleepwear, apparel, fragrances and body-care products, and PINK, a lifestyle brand serving younger consumers with intimates, apparel, beauty products and accessories. The company also owns Adore Me, a digitally focused intimate-apparel brand.

The company sells its products through company-operated stores, digital platforms and selected wholesale and partner channels.

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