Bed Bath & Beyond (BBBY) Upgraded to “Hold” by Zacks Investment Research

Zacks Investment Research upgraded shares of Bed Bath & Beyond (NASDAQ:BBBY) from a sell rating to a hold rating in a research note released on Friday, December 22nd.

According to Zacks, “Bed Bath & Beyond lagged the industry in last three months. Though the company reported top and bottom-line beat in third-quarter fiscal 2017, earnings declined year over year. Sales gained from opportunistic marketing spend and increased promotional offerings as planned for the quarter. However, this led to higher advertising costs and lower margins, which hurt the bottom line. Further, comps declined due to lower average transactions in stores, somewhat mitigated by greater average transaction amount. Additionally, the six-quarter long trend of strained margins due to higher shipping and coupon expenses as well as rise in SG&A, are likely to continue in fiscal 2017. The company also provided a bleak comps and earnings outlook for fiscal 2017. Nonetheless, the company’s transformation plan is on track to deliver a seamless customer experience. Its capital initiatives and constant shareholder-friendly moves also bode well.”

Other analysts have also issued reports about the stock. ValuEngine upgraded shares of Bed Bath & Beyond from a hold rating to a buy rating in a report on Monday, October 2nd. TheStreet lowered shares of Bed Bath & Beyond from a c rating to a d+ rating in a report on Wednesday, December 20th. Barclays restated an equal weight rating and issued a $30.00 price objective (down from $40.00) on shares of Bed Bath & Beyond in a report on Wednesday, September 20th. Jefferies Group restated a hold rating and issued a $25.00 price objective (down from $34.00) on shares of Bed Bath & Beyond in a report on Thursday, September 21st. Finally, Deutsche Bank lowered their price objective on shares of Bed Bath & Beyond to $21.00 and set a hold rating for the company in a report on Wednesday, September 20th. Eight research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and two have issued a buy rating to the company. The stock currently has an average rating of Hold and an average target price of $26.24.

Bed Bath & Beyond (NASDAQ BBBY) traded up $0.83 during midday trading on Friday, reaching $22.82. 4,932,239 shares of the company’s stock traded hands, compared to its average volume of 5,682,477. The company has a current ratio of 1.67, a quick ratio of 0.31 and a debt-to-equity ratio of 0.54. The stock has a market capitalization of $3,131.66, a price-to-earnings ratio of 6.56, a price-to-earnings-growth ratio of -3.66 and a beta of 1.09. Bed Bath & Beyond has a twelve month low of $19.07 and a twelve month high of $41.98.

Bed Bath & Beyond (NASDAQ:BBBY) last posted its earnings results on Wednesday, December 20th. The retailer reported $0.44 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.37 by $0.07. The company had revenue of $2.95 billion during the quarter, compared to analyst estimates of $2.90 billion. Bed Bath & Beyond had a net margin of 4.11% and a return on equity of 19.07%. Bed Bath & Beyond’s revenue for the quarter was down 1.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.85 earnings per share. equities analysts expect that Bed Bath & Beyond will post 3 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 17th. Shareholders of record on Friday, March 16th will be paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.63%. The ex-dividend date is Thursday, March 15th. Bed Bath & Beyond’s dividend payout ratio is 17.24%.

In other Bed Bath & Beyond news, VP Matthew Fiorilli sold 16,957 shares of the firm’s stock in a transaction that occurred on Friday, December 28th. The shares were sold at an average price of $22.62, for a total transaction of $383,567.34. Following the completion of the transaction, the vice president now owns 97,419 shares of the company’s stock, valued at $2,203,617.78. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 5.00% of the stock is currently owned by company insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in BBBY. Schwab Charles Investment Management Inc. increased its position in shares of Bed Bath & Beyond by 8.8% during the second quarter. Schwab Charles Investment Management Inc. now owns 910,413 shares of the retailer’s stock valued at $27,677,000 after acquiring an additional 73,791 shares in the last quarter. Advisors Asset Management Inc. increased its position in shares of Bed Bath & Beyond by 13.6% during the second quarter. Advisors Asset Management Inc. now owns 11,895 shares of the retailer’s stock valued at $362,000 after acquiring an additional 1,421 shares in the last quarter. State of Wisconsin Investment Board increased its position in shares of Bed Bath & Beyond by 30.4% during the second quarter. State of Wisconsin Investment Board now owns 135,330 shares of the retailer’s stock valued at $4,114,000 after acquiring an additional 31,580 shares in the last quarter. Legal & General Group Plc increased its position in shares of Bed Bath & Beyond by 10.7% during the second quarter. Legal & General Group Plc now owns 969,011 shares of the retailer’s stock valued at $29,457,000 after acquiring an additional 93,719 shares in the last quarter. Finally, BNP Paribas Arbitrage SA increased its position in shares of Bed Bath & Beyond by 0.7% during the second quarter. BNP Paribas Arbitrage SA now owns 179,391 shares of the retailer’s stock valued at $5,453,000 after acquiring an additional 1,260 shares in the last quarter. 94.20% of the stock is owned by institutional investors and hedge funds.

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Bed Bath & Beyond Company Profile

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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