Bath & Body Works (NYSE:BBWI) Shares Down 7.5% – Time to Sell?

Bath & Body Works, Inc. (NYSE:BBWI)’s stock price fell 7.5% during mid-day trading on Monday . The company traded as low as $18.56 and last traded at $18.5190. 4,185,074 shares were traded during trading, a decline of 28% from the average session volume of 5,784,822 shares. The stock had previously closed at $20.02.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. 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 on the stock in a research report on Thursday. Piper Sandler assumed coverage on shares of Bath & Body Works in a research note on Friday, May 15th. They issued a “neutral” rating and a $20.00 price objective for the company. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Bath & Body Works from $21.00 to $22.00 and gave the company a “hold” rating in a research note on Tuesday, March 3rd. UBS Group dropped their price objective on shares of Bath & Body Works from $22.00 to $19.00 and set a “neutral” rating for the company in a research note on Wednesday, May 20th. Finally, Wells Fargo & Company dropped their price objective on shares of Bath & Body Works from $29.00 to $25.00 and set an “overweight” rating for the company in a research note on Thursday. Three research analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Bath & Body Works presently has an average rating of “Hold” and a consensus target price of $21.93.

Bath & Body Works Price Performance

The firm has a market capitalization of $3.73 billion, a price-to-earnings ratio of 5.20, a PEG ratio of 2.00 and a beta of 1.42. The business’s fifty day simple moving average is $18.65 and its 200 day simple moving average is $20.21.

Bath & Body Works (NYSE:BBWI) last issued its quarterly earnings data on Wednesday, May 27th. The company reported $0.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.29 by $0.03. The firm 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 revenue was down 3.2% on a year-over-year basis. During the same period last year, the company earned $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 2.6 earnings per share for the current fiscal year.

Bath & Body Works Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 19th. Investors of record on Friday, June 5th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Friday, June 5th. This represents a $0.80 annualized dividend and a dividend yield of 4.3%. Bath & Body Works’s payout ratio is presently 22.47%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Global Retirement Partners LLC purchased a new position in Bath & Body Works during the fourth quarter worth about $31,000. Activest Wealth Management purchased a new position in Bath & Body Works during the fourth quarter worth about $32,000. Geneos Wealth Management Inc. boosted its holdings in Bath & Body Works by 217.7% during the first quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock worth $35,000 after purchasing an additional 801 shares during the last quarter. Parallel Advisors LLC boosted its holdings in Bath & Body Works by 42.6% during the fourth quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock worth $38,000 after purchasing an additional 567 shares during the last quarter. Finally, Danske Bank A S purchased a new position in Bath & Body Works during the third quarter worth about $39,000. 95.14% of the stock is currently owned by hedge funds and other institutional investors.

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.