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

Key Points

• Victoria’s Secret shares hit a new 52-week high, reaching $92.22 and closing around $91.65, well above their 50-day and 200-day moving averages.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $88.70. JPMorgan raised its target to $110, although UBS and Jefferies downgraded the stock to “neutral” and “hold,” respectively.
• The company exceeded quarterly expectations, reporting $0.60 in earnings per share versus a $0.29 consensus and revenue of $1.56 billion. However, insiders have sold 2.5 million shares worth approximately $212.4 million over the past 90 days.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) shares hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $92.22 and last traded at $91.65, with a volume of 215099 shares changing hands. The stock had previously closed at $89.86.

Analyst Ratings Changes

Several research firms have commented on VSXY. UBS Group downgraded shares of Victoria's Secret & Co. from a "buy" rating to a "neutral" rating and boosted their price target for the stock from $81.00 to $90.00 in a research note on Wednesday, June 3rd. JPMorgan Chase & Co. raised their price target on Victoria's Secret & Co. from $88.00 to $110.00 and gave the company an "overweight" rating in a research note on Tuesday, July 28th. Weiss Ratings upgraded Victoria's Secret & Co. from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, June 24th. Jefferies Financial Group lowered Victoria's Secret & Co. from a "buy" rating to a "hold" rating and raised their target price for the stock from $65.00 to $73.00 in a research report on Wednesday, June 3rd. Finally, Bank of America upgraded Victoria's Secret & Co. from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $58.00 to $68.00 in a research note on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $88.70.

Victoria's Secret & Co. Price Performance

The stock's fifty day moving average price is $79.63 and its 200-day moving average price is $62.34. The company has a debt-to-equity ratio of 1.17, a quick ratio of 0.41 and a current ratio of 1.26. The firm has a market cap of $7.44 billion, a PE ratio of 50.37, a P/E/G ratio of 0.70 and a beta of 2.06.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) last released its quarterly earnings results on Tuesday, June 2nd. The company reported $0.60 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.31. The business had revenue of $1.56 billion for the quarter, compared to analysts' expectations of $1.52 billion. Victoria's Secret & Co. had a return on equity of 38.03% and a net margin of 3.11%.During the same quarter in the prior year, the firm posted $0.09 EPS. As a group, equities analysts forecast that Victoria's Secret & Co. will post 4.67 EPS for the current fiscal year.

Insider Activity at Victoria's Secret & Co.

In related news, major shareholder International Pte Ltd Bbrc sold 798,920 shares of the stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $89.15, for a total value of $71,223,718.00. Following the sale, the insider directly owned 7,810,631 shares of the company's stock, valued at approximately $696,317,753.65. This represents a 9.28% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In the last 90 days, insiders have sold 2,500,000 shares of company stock valued at $212,353,716. 0.52% of the stock is owned by insiders.

Institutional Trading of Victoria's Secret & Co.

Large investors have recently modified their holdings of the business. Smartleaf Asset Management LLC lifted its stake in Victoria's Secret & Co. by 11.5% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,935 shares of the company's stock valued at $106,000 after buying an additional 199 shares during the last quarter. Maryland State Retirement & Pension System grew its position in shares of Victoria's Secret & Co. by 2.1% during the fourth quarter. Maryland State Retirement & Pension System now owns 11,725 shares of the company's stock worth $635,000 after acquiring an additional 245 shares during the last quarter. Investors Asset Management of Georgia Inc. GA ADV increased its holdings 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 worth $267,000 after acquiring an additional 250 shares during the period. Oregon Public Employees Retirement Fund increased its holdings in shares of Victoria's Secret & Co. by 1.6% in 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 period. Finally, Optimize Financial Inc lifted its position in Victoria's Secret & Co. by 1.5% in the 4th quarter. Optimize Financial Inc now owns 23,074 shares of the company's stock valued at $1,250,000 after purchasing an additional 332 shares during the last quarter. 90.29% of the stock is currently owned by institutional investors and hedge funds.

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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