Bath & Body Works (NYSE:BBWI) Shares Down 6.5% – Here’s Why

Bath & Body Works, Inc. (NYSE:BBWI) shares traded down 6.5% during trading on Wednesday . The company traded as low as $18.98 and last traded at $19.27. Approximately 865,606 shares were traded during trading, a decline of 85% from the average daily volume of 5,750,466 shares. The stock had previously closed at $20.62.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on BBWI. Barclays cut their price objective on Bath & Body Works from $25.00 to $23.00 and set an “equal weight” rating on the stock in a research report on Thursday, May 28th. Telsey Advisory Group decreased their target price on 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. Raymond James Financial reaffirmed a “market perform” rating on shares of Bath & Body Works in a research note on Wednesday, May 27th. TD Cowen lifted their price target on shares of Bath & Body Works from $20.00 to $25.00 and gave the company a “buy” rating in a report on Thursday, May 28th. Finally, Weiss Ratings downgraded shares of Bath & Body Works from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Tuesday, June 2nd. Three research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $22.00.

Bath & Body Works Price Performance

The stock has a 50 day simple moving average of $19.46 and a 200-day simple moving average of $20.41. The firm has a market cap of $3.89 billion, a PE ratio of 5.41, a PEG ratio of 2.17 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI) last released its 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 firm had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.36 billion. Bath & Body Works had a negative return on equity of 45.34% and a net margin of 10.03%.The company’s quarterly revenue was down 3.2% on a year-over-year basis. During the same period in the prior year, the firm 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. As a group, equities analysts predict that Bath & Body Works, Inc. will post 2.62 EPS for the current fiscal year.

Bath & Body Works Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date was Friday, June 5th. Bath & Body Works’s dividend payout ratio (DPR) is currently 22.47%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Gabelli Funds LLC raised its holdings in Bath & Body Works by 1.2% in the 3rd quarter. Gabelli Funds LLC now owns 47,536 shares of the company’s stock worth $1,225,000 after acquiring an additional 542 shares during the last quarter. Parallel Advisors LLC increased its holdings in shares of Bath & Body Works by 42.6% in the 4th quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock worth $38,000 after purchasing an additional 567 shares in the last quarter. State of Michigan Retirement System increased its holdings in shares of Bath & Body Works by 1.2% in the 1st quarter. State of Michigan Retirement System now owns 49,300 shares of the company’s stock worth $920,000 after purchasing an additional 600 shares in the last quarter. Meeder Asset Management Inc. raised its stake in shares of Bath & Body Works by 28.5% in the fourth quarter. Meeder Asset Management Inc. now owns 2,874 shares of the company’s stock worth $58,000 after purchasing an additional 637 shares during the last quarter. Finally, State of Wyoming raised its stake in shares of Bath & Body Works by 6.2% in the second quarter. State of Wyoming now owns 11,294 shares of the company’s stock worth $338,000 after purchasing an additional 661 shares during the last quarter. Institutional investors own 95.14% of the company’s stock.

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.