Bath & Body Works (NYSE:BBWI) Stock Price Up 4.3% – Here’s Why

Bath & Body Works, Inc. (NYSE:BBWI) shot up 4.3% during trading on Wednesday. The stock traded as high as $18.71 and last traded at $18.7650. 4,267,768 shares changed hands during trading, a decline of 28% from the average session volume of 5,922,687 shares. The stock had previously closed at $18.00.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on BBWI shares. The Goldman Sachs Group downgraded shares of Bath & Body Works from a “neutral” rating to a “sell” rating and cut their price objective for the company from $23.00 to $19.00 in a research report on Wednesday, July 8th. Morgan Stanley cut their price objective on Bath & Body Works from $22.00 to $20.00 and set an “equal weight” rating for the company in a research note on Thursday, August 27th. 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. JPMorgan Chase & Co. upped their price target on shares of Bath & Body Works from $22.00 to $24.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 18th. Finally, UBS Group reduced their price objective on shares of Bath & Body Works from $19.00 to $17.00 and set a “neutral” rating for the company in a research note on Thursday, August 27th. Four research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $22.13.

Bath & Body Works Stock Up 4.1%

The company has a market capitalization of $3.78 billion, a PE ratio of 4.88, a PEG ratio of 0.87 and a beta of 1.40. The company’s 50 day moving average is $18.17 and its two-hundred day moving average is $19.02.

Bath & Body Works (NYSE:BBWI) last announced its quarterly earnings results on Wednesday, August 26th. The company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.24 by $0.38. Bath & Body Works had a net margin of 10.83% and a negative return on equity of 53.48%. The business had revenue of $1.51 billion for the quarter, compared to analysts’ expectations of $1.50 billion. During the same quarter in the previous year, the company earned $0.30 EPS. The business’s quarterly 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. Analysts forecast that Bath & Body Works, Inc. will post 2.73 EPS for the current year.

Bath & Body Works Announces Dividend

The company 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 4.3%. The ex-dividend date of this dividend was Friday, August 21st. Bath & Body Works’s payout ratio is 20.83%.

Institutional Investors Weigh In On Bath & Body Works

A number of hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new position in Bath & Body Works during the 2nd quarter valued at approximately $449,065,000. Bank of America Corp DE bought a new stake in Bath & Body Works in the 2nd quarter worth approximately $62,249,000. Bank of New York Mellon Corp purchased a new stake in shares of Bath & Body Works during the 2nd quarter worth approximately $59,260,000. Vaughan Nelson Investment Management L.P. raised its holdings in shares of Bath & Body Works by 33.8% during the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 2,852,040 shares of the company’s stock worth $53,248,000 after acquiring an additional 719,795 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its stake in Bath & Body Works by 34.2% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,777,576 shares of the company’s stock valued at $51,857,000 after purchasing an additional 707,449 shares in the last quarter. 95.14% of the stock is currently owned by hedge funds and other institutional investors.

Bath & Body Works Company Profile

Bath & Body Works, Inc is a specialty retailer focused on personal care and home fragrance products. Its portfolio includes body lotions and creams, shower products, fragrances, hand soaps and sanitizers, three-wick candles, wall-plug air fresheners, and other home-fragrance items. The company markets products under the Bath & Body Works brand and regularly introduces seasonal and limited-edition collections.

The company sells its products through a network of company-operated stores, its e-commerce website, and other direct channels.