Victoria's Secret & Co. (NYSE:VSXY) Hits New 1-Year High - Should You Buy?

Key Points

• Victoria's Secret & Co. shares hit a new 52-week high, trading as high as $88.27 after closing previously at $83.00. The move came alongside solid trading volume and reflects a sharp rebound from much lower moving averages.
• Recent earnings beat expectations, with the company reporting $0.60 EPS versus the $0.29 consensus estimate and revenue of $1.56 billion, above forecasts. Analysts now expect full-year EPS of 4.61.
• Wall Street has turned more optimistic overall, with several firms raising price targets, including Wells Fargo to $90 and Barclays to $108. The stock currently carries a consensus rating of Moderate Buy with an average target of $82.60.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) shares hit a new 52-week high during trading on Friday . The stock traded as high as $88.27 and last traded at $88.15, with a volume of 199778 shares traded. The stock had previously closed at $83.00.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Wells Fargo & Company raised their price target on Victoria's Secret & Co. from $57.00 to $90.00 and gave the company an "overweight" rating in a report on Wednesday, June 3rd. UBS Group lowered Victoria's Secret & Co. from a "buy" rating to a "neutral" rating and boosted their price objective for the stock from $81.00 to $90.00 in a research note on Wednesday, June 3rd. Jefferies Financial Group cut Victoria's Secret & Co. from a "buy" rating to a "hold" rating and increased their target price for the stock from $65.00 to $73.00 in a report on Wednesday, June 3rd. Barclays raised their target price on Victoria's Secret & Co. from $67.00 to $108.00 and gave the company an "overweight" rating in a research note on Wednesday, June 3rd. Finally, Telsey Advisory Group upped their price target on shares of Victoria's Secret & Co. from $71.00 to $90.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 3rd. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $82.60.

Victoria's Secret & Co. Price Performance

The stock has a market capitalization of $6.85 billion, a P/E ratio of 46.40, a PEG ratio of 0.64 and a beta of 2.16. The company has a current ratio of 1.26, a quick ratio of 0.41 and a debt-to-equity ratio of 1.17. The company has a fifty day simple moving average of $60.45 and a two-hundred day simple moving average of $56.76.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) last released its earnings results on Tuesday, June 2nd. The company reported $0.60 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.29 by $0.31. Victoria's Secret & Co. had a net margin of 3.11% and a return on equity of 38.03%. The company had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.52 billion. During the same period in the prior year, the company posted $0.09 EPS. Sell-side analysts expect that Victoria's Secret & Co. will post 4.61 EPS for the current fiscal year.

Insider Buying and Selling at Victoria's Secret & Co.

In other Victoria's Secret & Co. news, major shareholder International Pte Ltd Bbrc sold 1,107,672 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $80.11, for a total value of $88,735,603.92. Following the transaction, the insider directly owned 9,202,959 shares of the company's stock, valued at approximately $737,249,045.49. This trade represents a 10.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Anne Sheehan bought 4,842 shares of the stock in a transaction on Thursday, April 2nd. The shares were acquired at an average cost of $45.86 per share, with a total value of $222,054.12. Following the acquisition, the director directly owned 34,261 shares in the company, valued at approximately $1,571,209.46. This trade represents a 16.46% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.52% of the company's stock.

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

Hedge funds have recently added to or reduced their stakes in the stock. Smartleaf Asset Management LLC grew its position in shares of Victoria's Secret & Co. by 11.5% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,935 shares of the company's stock worth $106,000 after buying an additional 199 shares during the period. Maryland State Retirement & Pension System increased its stake in shares of Victoria's Secret & Co. by 2.1% in the 4th quarter. Maryland State Retirement & Pension System now owns 11,725 shares of the company's stock valued at $635,000 after acquiring an additional 245 shares during the last quarter. Investors Asset Management of Georgia Inc. GA ADV raised its position in shares of Victoria's Secret & Co. by 4.5% in the 1st quarter. Investors Asset Management of Georgia Inc. GA ADV now owns 5,755 shares of the company's stock valued at $267,000 after acquiring an additional 250 shares during the period. Oregon Public Employees Retirement Fund boosted its stake in Victoria's Secret & Co. by 1.6% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 18,308 shares of the company's stock worth $992,000 after acquiring an additional 286 shares during the last quarter. Finally, Optimize Financial Inc boosted its stake in Victoria's Secret & Co. by 1.5% during the 4th quarter. Optimize Financial Inc now owns 23,074 shares of the company's stock worth $1,250,000 after acquiring an additional 332 shares during the last quarter. Institutional investors and hedge funds own 90.29% of the company's stock.

About Victoria's Secret & Co.

Victoria’s Secret & Co is a leading designer, manufacturer and marketer of intimate apparel, beauty products and accessories for women. The company operates a portfolio of brands that includes Victoria’s Secret, renowned for its lingerie, bras and sleepwear; PINK, a line targeting younger consumers with activewear and lifestyle products; and Victoria’s Secret Beauty, offering fragrances, cosmetics and personal care items. Products are sold through retail stores as well as direct-to-consumer channels, including e-commerce platforms and mobile applications.

The origins of Victoria’s Secret date back to 1977, when founders Roy and Gaye Raymond opened the first store in San Francisco.

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