Victoria's Secret & Co. (NYSE:VSCO) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Victoria's Secret & Co. shares saw a significant jump, opening at $24.99 after reporting earnings of $0.33 per share, exceeding the consensus estimate of $0.13.
• Following the earnings report, analysts have given mixed ratings on the stock, with UBS lowering its price target from $24.00 to $21.00 and maintaining a "neutral" rating.
• Institutional investors appear to be bullish on the stock, with GAMMA Investing LLC increasing its holdings by 1,209.6% during the first quarter.

Victoria's Secret & Co. (NYSE:VSCO - Get Free Report) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $22.78, but opened at $24.99. Victoria's Secret & Co. shares last traded at $23.63, with a volume of 2,550,860 shares changing hands.

The company reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.20. Victoria's Secret & Co. had a net margin of 2.69% and a return on equity of 37.76%. During the same period in the previous year, the firm earned $0.40 EPS. Victoria's Secret & Co.'s revenue for the quarter was up 2.9% on a year-over-year basis. Victoria's Secret & Co. has set its Q3 2025 guidance at -0.75--0.550 EPS. FY 2025 guidance at EPS.

Analysts Set New Price Targets

Several research analysts have issued reports on VSCO shares. Morgan Stanley reiterated a "positive" rating on shares of Victoria's Secret & Co. in a report on Thursday, June 12th. Zacks Research upgraded shares of Victoria's Secret & Co. to a "hold" rating in a research note on Monday, August 11th. Wall Street Zen raised shares of Victoria's Secret & Co. from a "sell" rating to a "hold" rating in a research report on Friday, August 22nd. UBS Group reduced their price target on shares of Victoria's Secret & Co. from $24.00 to $21.00 and set a "neutral" rating for the company in a research report on Thursday, August 21st. Finally, Wells Fargo & Company reduced their price target on shares of Victoria's Secret & Co. from $15.00 to $14.00 and set an "underweight" rating for the company in a research report on Monday, August 4th. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Victoria's Secret & Co. presently has a consensus rating of "Hold" and an average target price of $24.73.

Institutional Investors Weigh In On Victoria's Secret & Co.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. GAMMA Investing LLC grew its holdings in shares of Victoria's Secret & Co. by 1,209.6% during the first quarter. GAMMA Investing LLC now owns 45,651 shares of the company's stock worth $848,000 after buying an additional 42,165 shares in the last quarter. Victory Capital Management Inc. grew its holdings in shares of Victoria's Secret & Co. by 54.2% during the first quarter. Victory Capital Management Inc. now owns 1,430,016 shares of the company's stock worth $26,570,000 after buying an additional 502,622 shares in the last quarter. Arena Capital Advisors LLC CA purchased a new stake in shares of Victoria's Secret & Co. during the first quarter worth $484,000. Tremblant Capital Group grew its holdings in shares of Victoria's Secret & Co. by 137.1% during the fourth quarter. Tremblant Capital Group now owns 550,135 shares of the company's stock worth $22,787,000 after buying an additional 318,080 shares in the last quarter. Finally, Peregrine Capital Management LLC grew its holdings in shares of Victoria's Secret & Co. by 30.8% during the first quarter. Peregrine Capital Management LLC now owns 223,581 shares of the company's stock worth $4,154,000 after buying an additional 52,618 shares in the last quarter. Hedge funds and other institutional investors own 90.29% of the company's stock.

Victoria's Secret & Co. Price Performance

The firm has a market cap of $1.90 billion, a PE ratio of 11.82, a price-to-earnings-growth ratio of 1.21 and a beta of 2.17. The stock's fifty day moving average price is $20.38 and its 200-day moving average price is $21.00. The company has a debt-to-equity ratio of 1.60, a current ratio of 1.16 and a quick ratio of 0.33.

Victoria's Secret & Co. Company Profile

Victoria's Secret & Co operates as a lingerie, clothing and beauty retailer. It offers bras, panties, lingerie, pajamas, sleep, sport and swim apparel, and beauty products. The company was founded in 1963 and is headquartered in Reynoldsburg, OH.

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