Bath & Body Works (NYSE:BBWI) Stock Price Down 6.7% – Here’s Why

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

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. The Goldman Sachs Group cut shares of Bath & Body Works from a “neutral” rating to a “sell” rating and lowered their price objective for the stock from $23.00 to $19.00 in a research report on Wednesday, July 8th. Citigroup upgraded Bath & Body Works from a “neutral” rating to a “buy” rating and set a $25.00 price target for the company in a research report on Tuesday, August 18th. Barclays cut their price objective on 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. Morgan Stanley decreased their target price on Bath & Body Works from $22.00 to $20.00 and set an “equal weight” rating on the stock in a research note on Thursday, August 27th. Finally, Deutsche Bank Aktiengesellschaft set a $22.00 target price on Bath & Body Works in a research report on Thursday, August 27th. Four analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $22.13.

Bath & Body Works Stock Down 6.2%

The company has a market cap of $3.39 billion, a price-to-earnings ratio of 4.36, a PEG ratio of 1.91 and a beta of 1.38. The business’s fifty day simple moving average is $19.56 and its two-hundred day simple moving average is $19.57.

Bath & Body Works (NYSE:BBWI) last announced its earnings results on Wednesday, August 26th. The company reported $0.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.38. The firm had revenue of $1.51 billion during the quarter, compared to analysts’ expectations of $1.50 billion. Bath & Body Works had a negative return on equity of 53.48% and a net margin of 10.83%.The business’s revenue was down 2.3% on a year-over-year basis. During the same period in the prior year, the firm earned $0.30 EPS. 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. Sell-side analysts predict that Bath & Body Works, Inc. will post 2.73 EPS for the current fiscal year.

Bath & Body Works Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, September 4th. Stockholders of record on Friday, August 21st were paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 4.8%. The ex-dividend date 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 and other institutional investors have recently bought and sold shares of BBWI. State of Michigan Retirement System lifted its position in shares of Bath & Body Works by 1.2% during the 1st quarter. State of Michigan Retirement System now owns 49,300 shares of the company’s stock valued at $920,000 after acquiring an additional 600 shares during the period. Parallel Advisors LLC grew its holdings in shares of Bath & Body Works by 35.5% in the 1st quarter. Parallel Advisors LLC now owns 2,570 shares of the company’s stock worth $48,000 after acquiring an additional 673 shares during the period. Blue Trust Inc. grew its holdings in shares of Bath & Body Works by 30.0% in the 1st quarter. Blue Trust Inc. now owns 3,643 shares of the company’s stock worth $68,000 after acquiring an additional 840 shares during the period. Kera Capital Partners Inc. increased its stake in Bath & Body Works by 6.1% in the 1st quarter. Kera Capital Partners Inc. now owns 14,735 shares of the company’s stock valued at $275,000 after purchasing an additional 844 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund raised its holdings in Bath & Body Works by 2.4% during the first quarter. Oregon Public Employees Retirement Fund now owns 42,000 shares of the company’s stock worth $784,000 after purchasing an additional 1,000 shares during the last quarter. Institutional investors and hedge funds 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.