Bath & Body Works (NYSE:BBWI) Trading Down 7.5% – Should You Sell?

Shares of Bath & Body Works, Inc. (NYSE:BBWI) fell 7.5% during mid-day trading on Monday . The stock 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 brokerages have recently issued reports on BBWI. Barclays lowered their price objective on shares of Bath & Body Works from $25.00 to $23.00 and set an “equal weight” rating for the company in a research report on Thursday, May 28th. Weiss Ratings reissued a “hold (c-)” rating on shares of Bath & Body Works in a research report on Monday, April 20th. Wells Fargo & Company lowered 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 report on Thursday, May 28th. UBS Group lowered 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 report on Wednesday, May 20th. Finally, TD Cowen increased their price objective on shares of Bath & Body Works from $20.00 to $25.00 and gave the stock a “buy” rating in a research report on Thursday, May 28th. Three analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $21.93.

Bath & Body Works Price Performance

The firm has a market cap of $3.78 billion, a P/E ratio of 5.27, a P/E/G ratio of 1.86 and a beta of 1.42. The business’s 50-day moving average is $18.62 and its two-hundred day moving average is $20.18.

Bath & Body Works (NYSE:BBWI) last announced its quarterly earnings data on Wednesday, May 27th. The company reported $0.32 EPS for the quarter, beating analysts’ consensus estimates of $0.29 by $0.03. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. The company had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.36 billion. During the same quarter last year, the firm posted $0.49 EPS. The company’s quarterly revenue was down 3.2% on a year-over-year basis. 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 predict that Bath & Body Works, Inc. will post 2.61 EPS for the current year.

Bath & Body Works Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, June 5th will be given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date of this dividend is Friday, June 5th. Bath & Body Works’s dividend payout ratio (DPR) is 22.47%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. AQR Capital Management LLC grew its position in shares of Bath & Body Works by 132.5% in the 4th quarter. AQR Capital Management LLC now owns 11,445,928 shares of the company’s stock valued at $229,834,000 after acquiring an additional 6,523,960 shares during the period. Alliancebernstein L.P. grew its position in shares of Bath & Body Works by 2.2% in the 3rd quarter. Alliancebernstein L.P. now owns 5,861,444 shares of the company’s stock valued at $150,991,000 after acquiring an additional 123,648 shares during the period. American Century Companies Inc. grew its position in shares of Bath & Body Works by 2,204.1% in the 3rd quarter. American Century Companies Inc. now owns 5,174,370 shares of the company’s stock valued at $133,292,000 after acquiring an additional 4,949,796 shares during the period. Geode Capital Management LLC grew its position in shares of Bath & Body Works by 2.9% in the 4th quarter. Geode Capital Management LLC now owns 3,960,475 shares of the company’s stock valued at $79,542,000 after acquiring an additional 110,602 shares during the period. Finally, Jupiter Asset Management Ltd. grew its position in shares of Bath & Body Works by 553.2% in the 3rd quarter. Jupiter Asset Management Ltd. now owns 3,714,499 shares of the company’s stock valued at $95,685,000 after acquiring an additional 3,145,797 shares during the period. 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.