Bath & Body Works (NYSE:BBWI) Stock Price Down 6.7% – Should You Sell?

Shares of Bath & Body Works, Inc. (NYSE:BBWI) dropped 6.7% on Tuesday . The company traded as low as $16.67 and last traded at $16.7150. Approximately 3,675,094 shares traded hands during trading, a decline of 36% from the average daily volume of 5,782,480 shares. The stock had previously closed at $17.91.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on BBWI. JPMorgan Chase & Co. increased their target price on shares of Bath & Body Works from $22.00 to $24.00 and gave the stock a “neutral” rating in a report on Tuesday, August 18th. Barclays lowered their price target on shares of Bath & Body Works from $23.00 to $22.00 and set an “equal weight” rating on the stock in a report on Thursday, August 27th. TD Cowen increased their price objective on shares of Bath & Body Works from $20.00 to $25.00 and gave the stock a “buy” rating in a research note on Thursday, May 28th. The Goldman Sachs Group cut shares of Bath & Body Works from a “neutral” rating to a “sell” rating and reduced their price objective for the stock from $23.00 to $19.00 in a research note on Wednesday, July 8th. Finally, Telsey Advisory Group decreased their price objective on shares of Bath & Body Works from $25.00 to $22.00 and set a “market perform” rating on the stock in a research report on Thursday, May 28th. Four equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $22.13.

Bath & Body Works Price Performance

The firm has a 50-day moving average of $19.43 and a 200-day moving average of $19.48. The stock has a market cap of $3.39 billion, a PE ratio of 4.38, a PEG ratio of 1.72 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI) last posted its quarterly earnings results on Wednesday, August 26th. The company reported $0.62 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.38. Bath & Body Works had a negative return on equity of 53.48% and a net margin of 10.83%.The company had revenue of $1.51 billion for the quarter, compared to analysts’ expectations of $1.50 billion. During the same period in the previous year, the firm earned $0.30 EPS. The firm’s revenue was down 2.3% compared to the same quarter last year. Bath & Body Works has set its Q3 2026 guidance at 0.070-0.120 EPS and its FY 2026 guidance at 2.600-2.800 EPS. Equities analysts forecast that Bath & Body Works, Inc. will post 2.73 EPS for the current fiscal year.

Bath & Body Works Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, September 4th. Stockholders of record on Friday, August 21st were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 4.8%. The ex-dividend date of this dividend was Friday, August 21st. Bath & Body Works’s payout ratio is 20.83%.

Hedge Funds Weigh In On Bath & Body Works

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Tidal Investments LLC grew its stake in Bath & Body Works by 3.1% during the second quarter. Tidal Investments LLC now owns 107,852 shares of the company’s stock valued at $2,495,000 after acquiring an additional 3,211 shares in the last quarter. Nykredit A S purchased a new stake in Bath & Body Works in the 2nd quarter worth $93,000. Corient Private Wealth LP boosted its holdings in shares of Bath & Body Works by 125.2% during the 2nd quarter. Corient Private Wealth LP now owns 103,417 shares of the company’s stock valued at $2,392,000 after purchasing an additional 57,492 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Bath & Body Works during the 2nd quarter valued at about $2,691,000. Finally, Readystate Asset Management LP boosted its holdings in shares of Bath & Body Works by 75.4% during the 2nd quarter. Readystate Asset Management LP now owns 113,932 shares of the company’s stock valued at $2,635,000 after purchasing an additional 48,962 shares during the last quarter. Institutional investors own 95.14% of the company’s stock.

About Bath & Body Works

Bath & Body Works, Inc is a specialty retailer focused on personal care and home-fragrance products. Its offerings include body lotions and creams, shower gels, fragrance mists, hand soaps and sanitizers, candles, home fragrances, and related seasonal merchandise. The company markets products under the Bath & Body Works and White Barn names.

The company sells its products through a network of company-operated stores, its websites, and other direct channels. Its retail operations primarily serve customers in the United States and Canada, while international markets are reached through franchised, licensed, and other distribution arrangements.

Bath & Body Works traces its origins to 1990 and was formerly part of L Brands, Inc It became an independent publicly traded company in 2021 following the separation of L Brands’ Victoria’s Secret business.