Bed Bath & Beyond Inc. (BBBY) Downgraded by Zacks Investment Research
Zacks Investment Research downgraded shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) from a buy rating to a hold rating in a research note released on Wednesday.
According to Zacks, “Bed Bath & Beyond is focused on strategic initiatives like e-Commerce enhancement and improvement of customer services, as also evident from its recent store realigment plan. Also, comps from customer-facing digital networks grew over 20% in the last reported quarter. Additionally, Bed Bath & Beyond’s capital initiatives and constant shareholder-friendly moves should draw investors’ attention. However, the company has lagged the broader industry in the past year owing to its unimpressive past performances. Well, Bed Bath & Beyond has been reeling under sluggish mall traffic that has been intensifying with increasing shift toward online shopping. Also, margins have been pressurized for four quarters now, owing to increased expenses. Additionally, the company's global presence keeps it exposed to currency woes. Unfortunately, management's dismal view for fiscal 2017 raises concerns about these obstacles to linger.”
A number of other research analysts also recently issued reports on BBBY. UBS AG reissued a neutral rating and issued a $33.00 price objective (down from $37.00) on shares of Bed Bath & Beyond in a research note on Monday, June 26th. Morgan Stanley set a $30.00 price objective on Bed Bath & Beyond and gave the company a sell rating in a research note on Saturday, June 24th. Wedbush set a $30.00 price objective on Bed Bath & Beyond and gave the company a hold rating in a research note on Saturday, June 24th. Oppenheimer Holdings, Inc. reissued a hold rating on shares of Bed Bath & Beyond in a research note on Saturday, June 24th. Finally, Bank of America Corporation set a $27.00 price objective on Bed Bath & Beyond and gave the company a sell rating in a research note on Saturday, June 24th. Nine analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and two have assigned a buy rating to the company’s stock. The company has a consensus rating of Hold and an average target price of $34.94.
Bed Bath & Beyond (BBBY) traded down 0.66% during midday trading on Wednesday, hitting $28.67. The stock had a trading volume of 3,550,690 shares. Bed Bath & Beyond has a 52 week low of $26.96 and a 52 week high of $48.83. The stock has a market capitalization of $4.03 billion, a price-to-earnings ratio of 6.60 and a beta of 1.11. The company’s 50 day moving average price is $28.55 and its 200-day moving average price is $33.93.
Bed Bath & Beyond (NASDAQ:BBBY) last announced its quarterly earnings data on Thursday, June 22nd. The retailer reported $0.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.66 by ($0.08). The business had revenue of $2.74 billion during the quarter, compared to analyst estimates of $2.79 billion. Bed Bath & Beyond had a net margin of 5.22% and a return on equity of 24.38%. The firm’s revenue for the quarter was up .1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.80 earnings per share. Equities analysts anticipate that Bed Bath & Beyond will post $4.02 earnings per share for the current fiscal year.
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The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 17th. Stockholders of record on Friday, September 15th will be issued a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 2.09%. The ex-dividend date of this dividend is Thursday, September 14th. Bed Bath & Beyond’s dividend payout ratio is presently 13.86%.
Several hedge funds have recently added to or reduced their stakes in BBBY. BlackRock Inc. grew its holdings in shares of Bed Bath & Beyond by 2,768.5% in the first quarter. BlackRock Inc. now owns 12,120,048 shares of the retailer’s stock valued at $478,258,000 after acquiring an additional 11,697,533 shares in the last quarter. Renaissance Technologies LLC bought a new position in shares of Bed Bath & Beyond in the second quarter valued at approximately $68,548,000. FMR LLC grew its holdings in shares of Bed Bath & Beyond by 9.9% in the second quarter. FMR LLC now owns 14,748,756 shares of the retailer’s stock valued at $448,363,000 after acquiring an additional 1,330,077 shares in the last quarter. Hotchkis & Wiley Capital Management LLC grew its holdings in shares of Bed Bath & Beyond by 12.0% in the first quarter. Hotchkis & Wiley Capital Management LLC now owns 8,136,389 shares of the retailer’s stock valued at $321,062,000 after acquiring an additional 872,036 shares in the last quarter. Finally, First Trust Advisors LP grew its holdings in shares of Bed Bath & Beyond by 247.2% in the second quarter. First Trust Advisors LP now owns 889,716 shares of the retailer’s stock valued at $27,047,000 after acquiring an additional 633,465 shares in the last quarter. 93.35% of the stock is owned by institutional investors.
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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