Bath & Body Works (NYSE:BBWI) Stock Price Down 6.5% – Should You Sell?

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

Analyst Ratings Changes

Several research analysts have commented on the stock. UBS Group decreased their target price 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. Wells Fargo & Company lifted their price target on Bath & Body Works from $25.00 to $26.00 and gave the company an “overweight” rating in a report on Tuesday, June 23rd. The Goldman Sachs Group downgraded Bath & Body Works from a “neutral” rating to a “sell” rating and reduced their price objective for the stock from $23.00 to $19.00 in a research report on Wednesday. Telsey Advisory Group decreased their price objective 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. Finally, Weiss Ratings cut 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 given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $22.00.

Bath & Body Works Trading Up 2.9%

The stock’s 50-day moving average is $19.48 and its 200-day moving average is $20.41. The stock has a market cap of $4.02 billion, a P/E ratio of 5.61, a price-to-earnings-growth ratio of 1.92 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI) last released 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 company had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.36 billion. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. Bath & Body Works’s revenue was down 3.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.49 EPS. 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. On average, equities analysts forecast that Bath & Body Works, Inc. will post 2.63 EPS for the current year.

Bath & Body Works Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 19th. Investors of record on Friday, June 5th were issued a dividend of $0.20 per share. The ex-dividend date of this dividend was Friday, June 5th. This represents a $0.80 annualized dividend and a yield of 4.0%. Bath & Body Works’s payout ratio is presently 22.47%.

Hedge Funds Weigh In On Bath & Body Works

Several hedge funds have recently modified their holdings of BBWI. Gabelli Funds LLC raised its stake in shares of 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 buying an additional 542 shares in the last quarter. Parallel Advisors LLC boosted its stake in Bath & Body Works by 42.6% during the fourth quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock valued at $38,000 after buying an additional 567 shares in the last quarter. State of Michigan Retirement System grew its holdings in Bath & Body Works by 1.2% during the first quarter. State of Michigan Retirement System now owns 49,300 shares of the company’s stock worth $920,000 after acquiring an additional 600 shares during the period. Meeder Asset Management Inc. grew its holdings in Bath & Body Works by 28.5% during the fourth quarter. Meeder Asset Management Inc. now owns 2,874 shares of the company’s stock worth $58,000 after acquiring an additional 637 shares during the period. Finally, State of Wyoming raised its position in 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 acquiring an additional 661 shares in the last quarter. 95.14% of the stock is currently owned by institutional investors and hedge funds.

Bath & Body Works Company Profile

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.