Bath & Body Works Target of Unusually Large Options Trading (NYSE:BBWI)

Bath & Body Works, Inc. (NYSE:BBWI) was the recipient of unusually large options trading on Friday. Stock investors purchased 6,948 call options on the stock. This is an increase of 64% compared to the average daily volume of 4,230 call options.

Hedge Funds Weigh In On Bath & Body Works

Hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of Bath & Body Works during the 2nd quarter worth $449,065,000. AQR Capital Management LLC lifted its position in Bath & Body Works by 132.5% during the 4th quarter. AQR Capital Management LLC now owns 11,445,928 shares of the company’s stock worth $229,834,000 after acquiring an additional 6,523,960 shares in the last quarter. Alliancebernstein L.P. boosted its stake in shares of Bath & Body Works by 5.8% in the second quarter. Alliancebernstein L.P. now owns 5,737,796 shares of the company’s stock valued at $171,904,000 after purchasing an additional 315,738 shares during the period. California State Teachers Retirement System boosted its position in Bath & Body Works by 2,145.0% in the 2nd quarter. California State Teachers Retirement System now owns 5,363,801 shares of the company’s stock valued at $124,065,000 after buying an additional 5,124,881 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in Bath & Body Works by 2.9% in the fourth quarter. Geode Capital Management LLC now owns 3,960,475 shares of the company’s stock valued at $79,542,000 after purchasing an additional 110,602 shares during the last quarter. Institutional investors and hedge funds own 95.14% of the company’s stock.

Bath & Body Works Price Performance

BBWI opened at $19.25 on Friday. The stock has a market capitalization of $3.88 billion, a price-to-earnings ratio of 5.01, a price-to-earnings-growth ratio of 1.97 and a beta of 1.38. The business has a 50-day moving average of $20.30 and a two-hundred day moving average of $19.97. Bath & Body Works has a 12 month low of $14.27 and a 12 month high of $32.32.

Bath & Body Works (NYSE:BBWI) last posted its quarterly earnings data on Wednesday, August 26th. The company reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.38. Bath & Body Works had a net margin of 10.83% and a negative return on equity of 53.48%. The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter in the prior year, the company posted $0.30 EPS. The company’s quarterly revenue was down 2.3% compared to the same quarter last year. Bath & Body Works has set its Q3 2026 guidance at 0.070-0.120 EPS and its FY 2026 guidance at 2.600-2.800 EPS. Equities research analysts anticipate that Bath & Body Works will post 2.7 earnings per share for the current year.

Bath & Body Works Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 21st will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Friday, August 21st. This represents a $0.80 annualized dividend and a yield of 4.2%. Bath & Body Works’s dividend payout ratio is 20.83%.

Key Headlines Impacting Bath & Body Works

Here are the key news stories impacting Bath & Body Works this week:

• Positive Sentiment: Q2 earnings beat and outlook increase: Bath & Body Works exceeded Wall Street expectations for second-quarter EPS and revenue, supported by stronger direct sales. Management also raised its fiscal 2026 outlook, signaling improving operating momentum and helping drive the stock’s recent advance. BBWI Stock Jumps 7.5% on Q2 Earnings Beat, Fiscal 2026 Outlook Raised
• Positive Sentiment: Above-average call activity: Traders purchased 6,948 call options, 64% above the typical daily volume. The activity may indicate increased near-term bullish interest, although options flow alone does not confirm a change in fundamentals.
• Positive Sentiment: Bullish expectations from some investors: A recent analysis argues that market expectations for Bath & Body Works may be too low, suggesting potential upside if the company continues delivering on its earnings and outlook improvements. Bath & Body Works: Market Expectations Are Set Too Low

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Weiss Ratings upgraded Bath & Body Works from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, July 9th. TD Cowen raised their target price 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. Citigroup upgraded shares of Bath & Body Works from a “neutral” rating to a “buy” rating and set a $25.00 target price for the company in a report on Tuesday, August 18th. Barclays cut their target price on shares of Bath & Body Works from $23.00 to $22.00 and set an “equal weight” rating for the company in a research report on Thursday. Finally, Deutsche Bank Aktiengesellschaft set a $22.00 price target on shares of Bath & Body Works in a report on Thursday. Four investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Bath & Body Works currently has a consensus rating of “Hold” and an average price target of $22.29.

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.