What The Financials Tell Us About Bath & Body Works Inc. (BBWI)

MNDY Stock
MNDY Stock

Bath & Body Works Inc. (NYSE:BBWI) finished Thursday with a subtraction of -$0.92 to close at $35.44, a downside of -2.54 percent. An average of 2,069,946 shares of common stock have been traded in the last five days. There was a fall of -$2.38 in the past week, and it reached a new high 10 times over the past 12 months. The last 20 days have seen an average of 3,333,356 shares traded, while the 50-day average volume stands at 4,243,289.

BBWI stock has decreased by -0.74% in the last month. The company shares reached their 1-month lowest point of $35.26 on 09/23/22. With the stock rallying to its 52-week high on 01/04/22, shares of the company touched a low of $25.75 and a high of $82.00 in 52 weeks. It has reached a new high 2 times so far this year and lost -47.90% or -$34.35 in price. In spite of this, the price is down -56.78% from the 52-week high.

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Insider Transactions

119 days have passed since Bath & Body Works Inc. (BBWI) last reported insider trading activity. Mazurek Thomas E., who is Chief Supply Chain Officer, most recently acquired $16,338 shares at $42.25 per share on May 27. In this transaction, the insider spent $690,315. EVP and CFO, Arlin Wendy C., disposed of 6,000 shares at a price of $55.00 on Apr 19. The insider now owns more than $330,000 worth of shares. Prior to that, Director SCHOTTENSTEIN ROBERT H went on to Sale 5,375 shares at $74.52 each on Nov 24. An amount of $400,534 was transacted.

Valuation Metrics

Bath & Body Works Inc. (BBWI) has a trailing price-to-earnings (P/E) ratio of 8.89. The stock’s beta is 1.77. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.06, and the price-to-cash flow ratio at 14.27.

The company has a payout ratio of 18.50%. The company’s most recent quarterly dividend payment was $0.20 a share, without any change from last year. Its latest increase dividend $0.05 reported on Wednesday February 2 2022.

Financial Health

The quick ratio of Bath & Body Works Inc. for the three months ended July 30 was 0.60, and the current ratio was 1.40, indicating that the company is not able to meet its debt obligations. Its gross profit as reported stood at $3.85 billion compared to revenue of $7.88 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Bath & Body Works Inc.’s return on assets was 17.50%.

Earnings Surprise

For the three-month period that ended July 30, Bath & Body Works Inc. had $4.86 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $120.0 million in the quarter, while revenues were shrunk -211.67%. The analyst consensus anticipated Bath & Body Works Inc.’s latest quarter earnings to come in at $0.48 per share, but it turned out to be $0.53, a 10.40% surprise. For the quarter, EBITDA amounted to $295.0 million. Shareholders own equity worth $228.37 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Bath & Body Works Inc. (BBWI) price momentum. RSI 9-day as of the close on 22 September was 34.73%, suggesting the stock is Neutral, with historical volatility in this time frame at 40.60%.

As of today, BBWI’s price is $37.03 -6.28% or -$2.38 from its 5-day moving average. BBWI is currently trading -6.55% lower than its 20-day SMA and -34.72% lower than its 100-day SMA. However, the stock’s current price level is +36.54% above the SMA50 and -53.33% below the SMA200.

The stochastic %K and %D were 10.53% and 22.39%, respectively, and the average true range (ATR) was 1.63. With the 14-day stochastic at 3.34% and the average true range at 1.69, the RSI (14) stands at 41.17%. The stock has reached -1.11 on the 9-day MACD Oscillator while the 14-day reading was at -1.68.

Analyst Ratings

Telsey Advisory Group reiterated its an Outperform rating on Bath & Body Works Inc. (NYSE: BBWI), but raised their price target to $40, indicating a potential price increase of 11.4% for the stock. The consensus rating for Bath & Body Works Inc. (BBWI) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell BBWI, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 15 others rate it as a “buy”.

What is BBWI’s price target for the next 12 months?

Analysts predict a range of price targets between $40.00 and $82.00, with a median target of $48.00. Taking a look at these predictions, the average price target given by analysts for Bath & Body Works Inc. (BBWI) stock is $50.42.


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