Bath & Body Works (NYSE:BBWI) Shares Up 7% – Here’s Why

Bath & Body Works, Inc. (NYSE:BBWI) shot up 7% on Tuesday . The company traded as high as $20.63 and last traded at $20.83. 525,396 shares traded hands during trading, a decline of 91% from the average session volume of 5,702,871 shares. The stock had previously closed at $19.46.

Analyst Upgrades and Downgrades

A number of research firms have commented on BBWI. Weiss Ratings cut shares of Bath & Body Works from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, June 2nd. Wells Fargo & Company reduced their price target on shares of Bath & Body Works from $29.00 to $25.00 and set an “overweight” rating for the company in a report on Thursday, May 28th. Telsey Advisory Group reduced their price target on shares of Bath & Body Works from $25.00 to $22.00 and set a “market perform” rating for the company in a report on Thursday, May 28th. Deutsche Bank Aktiengesellschaft raised their price target on shares of Bath & Body Works from $21.00 to $22.00 and gave the stock a “hold” rating in a report on Tuesday, March 3rd. Finally, Raymond James Financial restated a “market perform” rating on shares of Bath & Body Works in a report on Wednesday, May 27th. Three research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $21.93.

Bath & Body Works Price Performance

The firm has a market capitalization of $4.12 billion, a price-to-earnings ratio of 5.74, a PEG ratio of 2.09 and a beta of 1.42. The business’s fifty day simple moving average is $18.72 and its 200 day simple moving average is $20.17.

Bath & Body Works (NYSE:BBWI) last posted its quarterly earnings results on Wednesday, May 27th. The company reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.29 by $0.03. The business had revenue of $1.38 billion during the quarter, compared to analysts’ expectations of $1.36 billion. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. The business’s quarterly revenue was down 3.2% on a year-over-year basis. During the same period last year, the company posted $0.49 earnings per share. Bath & Body Works has set its Q2 2026 guidance at 0.300-0.300 EPS and its FY 2026 guidance at 2.400-2.650 EPS. Equities research analysts expect that Bath & Body Works, Inc. will post 2.62 earnings per share for the current fiscal year.

Bath & Body Works Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, June 5th will be issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date is Friday, June 5th. Bath & Body Works’s dividend payout ratio (DPR) is currently 22.47%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in BBWI. Royal Bank of Canada grew its holdings in shares of Bath & Body Works by 92.8% during the first quarter. Royal Bank of Canada now owns 59,877 shares of the company’s stock valued at $1,815,000 after buying an additional 28,815 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Bath & Body Works by 15.7% during the first quarter. Goldman Sachs Group Inc. now owns 645,970 shares of the company’s stock valued at $19,586,000 after buying an additional 87,529 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Bath & Body Works by 7.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 562,757 shares of the company’s stock valued at $17,063,000 after buying an additional 36,684 shares during the last quarter. Intech Investment Management LLC acquired a new position in shares of Bath & Body Works during the first quarter valued at about $1,155,000. Finally, Geneos Wealth Management Inc. grew its holdings in shares of Bath & Body Works by 217.7% during the first quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock valued at $35,000 after buying an additional 801 shares during the last quarter. 95.14% of the stock is currently owned by institutional investors and hedge funds.

About Bath & Body Works

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.