Bed Bath & Beyond Inc. (BBBY) Rating Increased to Hold at Zacks Investment Research
According to Zacks, “Bed Bath & Beyond remains focused on strategic initiatives like store expansion, eCommerce enhancement and improvement of customer services, which remain growth catalysts. However, the company's trend of reporting dismal quarterly results has considerably weighed on its stock price, which has underperformed the broader industry in the last six months. The company has been reeling under sluggish mall traffic, with increasing shift toward online shopping. Also, margins have been pressurized owing to increased costs. Expectations of these factors to linger caused management to provide a bleak outlook for fiscal 2016. Additionally, the company adverse currency fluctuations remain a threat. Nonetheless, we believe the company's store enhancement strategies will go a long way in attracting existing as well as new customers. The company's constant shareholder-friendly moves and its capital allocation strategy also remain noteworthy.”
A number of other brokerages have also recently issued reports on BBBY. Telsey Advisory Group lowered their price objective on Bed Bath & Beyond from $45.00 to $43.00 and set a market perform rating on the stock in a research note on Thursday, December 22nd. Argus lowered their price objective on Bed Bath & Beyond from $55.00 to $50.00 and set a buy rating on the stock in a research note on Friday, February 10th. Jefferies Group LLC restated a hold rating and issued a $45.00 price objective on shares of Bed Bath & Beyond in a research note on Friday, December 23rd. BTIG Research restated a neutral rating on shares of Bed Bath & Beyond in a research note on Friday, December 23rd. Finally, Loop Capital initiated coverage on Bed Bath & Beyond in a research note on Tuesday, December 20th. They issued a sell rating and a $35.00 price objective on the stock. Eight analysts have rated the stock with a sell rating, sixteen have given a hold rating, one has given a buy rating and one has given a strong buy rating to the company. Bed Bath & Beyond has a consensus rating of Hold and an average target price of $43.67.
Bed Bath & Beyond (NASDAQ:BBBY) opened at 39.15 on Wednesday. Bed Bath & Beyond has a 12-month low of $38.58 and a 12-month high of $52.33. The stock has a 50 day moving average of $40.19 and a 200-day moving average of $42.34. The company has a market cap of $5.75 billion, a PE ratio of 8.31 and a beta of 0.85.
Bed Bath & Beyond (NASDAQ:BBBY) last announced its quarterly earnings data on Wednesday, December 21st. The retailer reported $0.85 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.98 by $0.13. Bed Bath & Beyond had a net margin of 5.95% and a return on equity of 27.65%. The firm earned $3 billion during the quarter, compared to the consensus estimate of $3.01 billion. During the same quarter in the prior year, the firm posted $1.09 earnings per share. The company’s revenue was up .1% on a year-over-year basis. On average, equities research analysts anticipate that Bed Bath & Beyond will post $4.52 earnings per share for the current fiscal year.
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The company also recently announced a quarterly dividend, which will be paid on Tuesday, April 18th. Investors of record on Friday, March 17th will be given a $0.125 dividend. The ex-dividend date is Wednesday, March 15th. This represents a $0.50 dividend on an annualized basis and a yield of 1.28%. Bed Bath & Beyond’s payout ratio is 10.71%.
A number of hedge funds have recently added to or reduced their stakes in BBBY. Public Employees Retirement System of Ohio increased its stake in Bed Bath & Beyond by 13.8% in the second quarter. Public Employees Retirement System of Ohio now owns 44,755 shares of the retailer’s stock worth $1,934,000 after buying an additional 5,427 shares during the last quarter. Cohen & Steers Inc. purchased a new stake in Bed Bath & Beyond during the second quarter worth $9,046,000. Northwestern Mutual Wealth Management Co. increased its stake in Bed Bath & Beyond by 34.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 6,924 shares of the retailer’s stock worth $299,000 after buying an additional 1,777 shares during the last quarter. Kentucky Retirement Systems purchased a new stake in Bed Bath & Beyond during the second quarter worth $567,000. Finally, Kentucky Retirement Systems Insurance Trust Fund purchased a new stake in Bed Bath & Beyond during the second quarter worth $269,000. Institutional investors own 93.69% of the company’s stock.
About Bed Bath & Beyond
Bed Bath & Beyond Inc is a retailer, which operates under the names Bed Bath & Beyond (BBB), Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! (collectively, CTS), Harmon or Harmon Face Values (collectively, Harmon), buybuy BABY (Baby) and World Market, Cost Plus World Market or Cost Plus (collectively, Cost Plus World Market).
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