Bed Bath & Beyond Inc. (BBBY) Lowered to Sell at Zacks Investment Research
According to Zacks, “Bed Bath & Beyond remains focused on strategic initiatives like store expansion, eCommerce enhancement and improvement of customer services, which remain growth catalysts. The latest buyout of One Kings Lane, which highlights its focus on acquisitions, is likely to enable the company to combat competition from eCommerce giants and boost results. However, sluggish mall traffic and high promotional costs pose concerns. Further, owing to its exposure to global markets, the company faces various risks associated with international operations, like currency fluctuations. Also, the company's lowered comps view, and expectations of SG&A expense and gross margin deleverage for fiscal 2016 raises concerns. Of late, estimates have been going down ahead of the company’s second-quarter earnings release.”
Several other analysts have also recently commented on the company. Credit Suisse Group AG set a $41.00 price target on Bed Bath & Beyond and gave the stock a hold rating in a research report on Monday, September 12th. Vetr upgraded Bed Bath & Beyond from a buy rating to a strong-buy rating in a research report on Thursday, August 25th. Wedbush reiterated a neutral rating and set a $42.00 price target on shares of Bed Bath & Beyond in a research report on Tuesday, August 2nd. Robert W. Baird reiterated a neutral rating and set a $45.00 price target (down from $51.00) on shares of Bed Bath & Beyond in a research report on Monday, June 27th. Finally, KeyCorp reiterated an underweight rating on shares of Bed Bath & Beyond in a research report on Saturday, June 25th. Eight equities research analysts have rated the stock with a sell rating, nineteen have assigned a hold rating, two have issued a buy rating and two have given a strong buy rating to the stock. The stock presently has a consensus rating of Hold and a consensus price target of $50.20.
Bed Bath & Beyond (NASDAQ:BBBY) opened at 43.34 on Monday. The company’s 50-day moving average is $44.98 and its 200 day moving average is $45.76. The stock has a market cap of $6.55 billion, a PE ratio of 8.65 and a beta of 0.72. Bed Bath & Beyond has a 52 week low of $41.15 and a 52 week high of $61.90.
Bed Bath & Beyond (NASDAQ:BBBY) last issued its quarterly earnings results on Wednesday, June 22nd. The retailer reported $0.80 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.86 by $0.06. Bed Bath & Beyond had a return on equity of 31.15% and a net margin of 6.66%. The firm had revenue of $2.74 billion for the quarter. During the same period last year, the firm earned $0.93 EPS. The business’s quarterly revenue was up .0% compared to the same quarter last year. On average, analysts expect that Bed Bath & Beyond will post $4.83 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 18th. Stockholders of record on Friday, September 16th will be issued a $0.125 dividend. The ex-dividend date is Wednesday, September 14th. This represents a $0.50 annualized dividend and a dividend yield of 1.15%. Bed Bath & Beyond’s dividend payout ratio is currently 9.98%.
In other news, COO Eugene A. Castagna sold 17,866 shares of the firm’s stock in a transaction that occurred on Friday, August 12th. The stock was sold at an average price of $45.86, for a total value of $819,334.76. Following the completion of the sale, the chief operating officer now directly owns 140,630 shares of the company’s stock, valued at approximately $6,449,291.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 4.70% of the stock is owned by insiders.
Several hedge funds have recently bought and sold shares of BBBY. Kovitz Investment Group Partners LLC acquired a new stake in Bed Bath & Beyond during the first quarter valued at approximately $43,119,000. Geode Capital Management LLC boosted its stake in Bed Bath & Beyond by 8.1% in the first quarter. Geode Capital Management LLC now owns 1,585,151 shares of the retailer’s stock valued at $78,554,000 after buying an additional 118,898 shares in the last quarter. FirstMerit Bank N A Trustee boosted its stake in Bed Bath & Beyond by 7.2% in the second quarter. FirstMerit Bank N A Trustee now owns 8,893 shares of the retailer’s stock valued at $384,000 after buying an additional 600 shares in the last quarter. Magnetar Financial LLC boosted its stake in Bed Bath & Beyond by 0.5% in the first quarter. Magnetar Financial LLC now owns 8,107 shares of the retailer’s stock valued at $402,000 after buying an additional 38 shares in the last quarter. Finally, Norges Bank acquired a new stake in Bed Bath & Beyond during the fourth quarter valued at approximately $88,509,000. 95.23% of the stock is owned by institutional investors and hedge funds.
About Bed Bath & Beyond
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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