Bath & Body Works (NYSE:BBWI) Trading Up 8.9% – Here’s Why

Shares of Bath & Body Works, Inc. (NYSE:BBWI) rose 8.9% during mid-day trading on Monday . The company traded as high as $18.39 and last traded at $18.2940. Approximately 1,709,397 shares traded hands during trading, a decline of 67% from the average daily volume of 5,247,519 shares. The stock had previously closed at $16.80.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the stock. Barclays increased their target price on shares of Bath & Body Works from $20.00 to $21.00 and gave the stock an “equal weight” rating in a research report on Monday, March 2nd. Guggenheim began coverage on shares of Bath & Body Works in a research report on Tuesday, December 9th. They set a “neutral” rating for the company. Robert W. Baird set a $20.00 price objective on Bath & Body Works in a research report on Wednesday, December 17th. Jefferies Financial Group began coverage on Bath & Body Works in a report on Wednesday, January 14th. They set a “hold” rating and a $24.00 target price on the stock. Finally, Telsey Advisory Group boosted their target price on shares of Bath & Body Works from $23.00 to $25.00 and gave the stock a “market perform” rating in a research report on Thursday, March 5th. Three research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $24.00.

Bath & Body Works Stock Performance

The firm has a market cap of $3.73 billion, a price-to-earnings ratio of 5.90, a PEG ratio of 1.68 and a beta of 1.48. The stock’s fifty day moving average is $21.65 and its two-hundred day moving average is $22.31.

Bath & Body Works (NYSE:BBWI) last released its quarterly earnings results on Wednesday, March 4th. The company reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.77 by $0.28. Bath & Body Works had a negative return on equity of 45.60% and a net margin of 8.90%.The company had revenue of $2.72 billion during the quarter, compared to analysts’ expectations of $2.59 billion. During the same quarter in the prior year, the business posted $2.09 earnings per share. The company’s revenue for the quarter was down 2.3% compared to the same quarter last year. Bath & Body Works has set its Q1 2026 guidance at 0.240-0.300 EPS and its FY 2026 guidance at 2.400-2.650 EPS. Sell-side analysts predict that Bath & Body Works, Inc. will post 3.3 earnings per share for the current year.

Bath & Body Works Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, March 6th. Stockholders of record on Friday, February 20th were given a dividend of $0.20 per share. The ex-dividend date of this dividend was Friday, February 20th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 4.3%. Bath & Body Works’s payout ratio is 25.40%.

Hedge Funds Weigh In On Bath & Body Works

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Retirement Systems of Alabama grew its position in Bath & Body Works by 40.6% during the third quarter. Retirement Systems of Alabama now owns 772,324 shares of the company’s stock worth $19,895,000 after buying an additional 223,089 shares in the last quarter. Allianz Asset Management GmbH increased its holdings in Bath & Body Works by 58.8% in the 3rd quarter. Allianz Asset Management GmbH now owns 263,628 shares of the company’s stock valued at $6,791,000 after buying an additional 97,640 shares during the period. Diamond Hill Capital Management Inc. increased its holdings in Bath & Body Works by 29.9% in the 3rd quarter. Diamond Hill Capital Management Inc. now owns 369,452 shares of the company’s stock valued at $9,517,000 after buying an additional 85,000 shares during the period. Access Investment Management LLC acquired a new position in shares of Bath & Body Works in the 3rd quarter valued at $3,506,000. Finally, GMT Capital Corp raised its stake in shares of Bath & Body Works by 8.8% in the 2nd quarter. GMT Capital Corp now owns 4,067,000 shares of the company’s stock valued at $121,847,000 after buying an additional 329,300 shares in the last quarter. Institutional investors and hedge funds own 95.14% of the company’s stock.

Bath & Body Works Company Profile

Bath & Body Works, Inc is a leading specialty retailer focused on personal care, home fragrance and complementary products. Through its flagship Bath & Body Works brand, the company offers a diverse assortment of shower gels, lotions, fragrance mists, candles and home fragrance items. Its product portfolio also includes the White Barn Candle Co range of premium scented candles and diffusers. Bath & Body Works serves consumers through a combination of brick-and-mortar stores and e-commerce platforms, delivering seasonal collections, limited-edition releases and signature scent lines.

Founded in 1990 as part of Limited Brands (now L Brands), Bath & Body Works opened its first store in New Albany, Ohio, and quickly expanded across the United States.