Bath & Body Works, Inc. (NYSE:BBWI) Sees Large Increase in Short Interest

Bath & Body Works, Inc. (NYSE:BBWI) was the recipient of a significant growth in short interest during the month of February. As of February 28th, there was short interest totalling 6,000,000 shares, a growth of 31.0% from the February 13th total of 4,580,000 shares. Approximately 2.8% of the company’s shares are short sold. Based on an average trading volume of 4,010,000 shares, the short-interest ratio is currently 1.5 days.

Bath & Body Works Stock Performance

Shares of BBWI stock traded down $0.28 during mid-day trading on Tuesday, hitting $29.97. 2,751,215 shares of the stock were exchanged, compared to its average volume of 4,080,485. Bath & Body Works has a 12-month low of $26.21 and a 12-month high of $52.99. The stock has a market capitalization of $6.49 billion, a price-to-earnings ratio of 7.32, a P/E/G ratio of 0.92 and a beta of 1.89. The stock’s fifty day simple moving average is $36.23 and its two-hundred day simple moving average is $33.99.

Bath & Body Works (NYSE:BBWI) last posted its quarterly earnings data on Thursday, February 27th. The company reported $2.09 earnings per share for the quarter, beating the consensus estimate of $2.04 by $0.05. The business had revenue of $2.79 billion during the quarter, compared to the consensus estimate of $2.78 billion. Bath & Body Works had a negative return on equity of 44.03% and a net margin of 12.43%. On average, research analysts expect that Bath & Body Works will post 3.3 earnings per share for the current fiscal year.

Bath & Body Works declared that its board has initiated a share buyback plan on Thursday, February 27th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 6.4% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Bath & Body Works Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, March 7th. Stockholders of record on Friday, February 21st were issued a $0.20 dividend. The ex-dividend date of this dividend was Friday, February 21st. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.67%. Bath & Body Works’s payout ratio is 21.98%.

Wall Street Analyst Weigh In

BBWI has been the topic of a number of research analyst reports. Argus restated a “hold” rating on shares of Bath & Body Works in a research report on Friday, January 10th. Telsey Advisory Group reaffirmed an “outperform” rating and issued a $43.00 target price on shares of Bath & Body Works in a research report on Thursday, February 27th. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Bath & Body Works from $51.00 to $52.00 and gave the stock a “buy” rating in a report on Tuesday, November 26th. TD Cowen lifted their target price on shares of Bath & Body Works from $42.00 to $48.00 and gave the company a “buy” rating in a report on Thursday, December 12th. Finally, Piper Sandler boosted their target price on Bath & Body Works from $36.00 to $39.00 and gave the company a “neutral” rating in a research report on Monday, January 6th. Five research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $45.06.

Institutional Investors Weigh In On Bath & Body Works

Several hedge funds have recently modified their holdings of the stock. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in shares of Bath & Body Works by 32.6% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 52,784 shares of the company’s stock valued at $2,046,000 after purchasing an additional 12,964 shares in the last quarter. Wellington Management Group LLP purchased a new stake in shares of Bath & Body Works during the 3rd quarter worth approximately $8,129,000. Forest Avenue Capital Management LP raised its holdings in Bath & Body Works by 19.1% during the third quarter. Forest Avenue Capital Management LP now owns 1,467,763 shares of the company’s stock worth $46,851,000 after purchasing an additional 235,173 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in Bath & Body Works by 13.0% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,704,625 shares of the company’s stock worth $66,088,000 after acquiring an additional 195,813 shares during the last quarter. Finally, Anthracite Investment Company Inc. purchased a new position in shares of Bath & Body Works during the 3rd quarter worth approximately $2,921,000. 95.14% of the stock is owned by institutional investors and hedge funds.

About Bath & Body Works

Bath & Body Works, Inc is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap.