Victoria's Secret & Co. (NYSE:VSXY) Shares Up 5.4% - Still a Buy?

Key Points

• Victoria’s Secret & Co. shares climbed 5.4% on Monday, trading as high as $86.61 and finishing near $85.87, above the prior close of $81.45.
• Analyst sentiment remains mixed but constructive: UBS downgraded the stock to neutral, while Bank of America, JPMorgan, and Telsey all raised their targets or ratings. The consensus from MarketBeat is still Moderate Buy with an average price target of $86.50.
• The company recently beat quarterly expectations, posting $0.60 EPS versus $0.29 expected and revenue of $1.56 billion versus $1.52 billion anticipated. Insider selling was notable as well, with a major shareholder selling 276,171 shares at $88.50.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) shares rose 5.4% during trading on Monday . The stock traded as high as $86.61 and last traded at $85.87. 300,197 shares traded hands during mid-day trading, a decline of 87% from the average session volume of 2,242,520 shares. The stock had previously closed at $81.45.

Analyst Ratings Changes

A number of brokerages have issued reports on VSXY. UBS Group cut shares of Victoria's Secret & Co. from a "buy" rating to a "neutral" rating and boosted their target price for the company from $81.00 to $90.00 in a report on Wednesday, June 3rd. Bank of America raised Victoria's Secret & Co. from a "neutral" rating to a "buy" rating and raised their price target for the stock from $58.00 to $68.00 in a report on Wednesday, April 29th. JPMorgan Chase & Co. lifted their price target on Victoria's Secret & Co. from $77.00 to $88.00 and gave the company an "overweight" rating in a research report on Monday, June 8th. Telsey Advisory Group boosted their price objective on Victoria's Secret & Co. from $71.00 to $90.00 and gave the company an "outperform" rating in a research note on Wednesday, June 3rd. Finally, TD Cowen increased their price objective on Victoria's Secret & Co. from $50.00 to $75.00 and gave the stock a "hold" rating in a report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $86.50.

Victoria's Secret & Co. Trading Up 6.5%

The firm's 50 day moving average is $69.59 and its 200 day moving average is $59.73. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.26 and a quick ratio of 0.41. The company has a market cap of $6.89 billion, a PE ratio of 46.63, a PEG ratio of 0.64 and a beta of 2.07.

Victoria's Secret & Co. (NYSE:VSXY - Get Free Report) last posted its earnings results on Tuesday, June 2nd. The company reported $0.60 earnings per share (EPS) for the quarter, topping the consensus estimate 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 net margin of 3.11% and a return on equity of 38.03%. During the same period in the prior year, the company posted $0.09 EPS. On average, equities analysts anticipate that Victoria's Secret & Co. will post 4.65 earnings per share for the current year.

Insider Activity

In related news, major shareholder International Pte Ltd Bbrc sold 276,171 shares of Victoria's Secret & Co. stock in a transaction on Friday, June 26th. The stock was sold at an average price of $88.50, for a total transaction of $24,441,133.50. Following the completion of the sale, the insider owned 8,899,030 shares of the company's stock, valued at approximately $787,564,155. This trade represents a 3.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders sold a total of 1,411,601 shares of company stock valued at $115,398,210 in the last quarter. Company insiders own 0.52% of the company's stock.

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

Institutional investors have recently added to or reduced their stakes in the business. Geode Capital Management LLC increased its stake in Victoria's Secret & Co. by 2.8% in the fourth quarter. Geode Capital Management LLC now owns 1,760,139 shares of the company's stock valued at $95,365,000 after acquiring an additional 47,462 shares during the last quarter. Allspring Global Investments Holdings LLC bought a new stake in Victoria's Secret & Co. during the fourth quarter worth about $7,790,000. Landscape Capital Management L.L.C. boosted its holdings in shares of Victoria's Secret & Co. by 47.5% in the 4th quarter. Landscape Capital Management L.L.C. now owns 177,423 shares of the company's stock worth $9,611,000 after purchasing an additional 57,133 shares in the last quarter. Apollon Wealth Management LLC purchased a new position in shares of Victoria's Secret & Co. in the 1st quarter worth about $940,000. Finally, Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Victoria's Secret & Co. during the 4th quarter valued at about $9,634,000. 90.29% of the stock is currently owned by institutional investors.

Victoria's Secret & Co. Company Profile

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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