Zacks Investment Research downgraded shares of Bed Bath & Beyond Inc. (NASDAQ:BBBY) from a hold rating to a strong sell rating in a research report sent to investors on Friday.

According to Zacks, “Bed Bath & Beyond lagged the industry year to date, due to negative earnings and sales surprises in five of the trailing six quarters. Top and bottom lines for second-quarter fiscal 2017 lagged estimates for the second straight time and dipped year over year. This was due to persistent soft traffic and escalated costs along with effects of Hurricane Harvey, offset by strength at its online business. Taking into consideration the dismal first half, impacts from Hurricane Harvey, higher transformation plans related costs and persistence of dismal trends, management trimmed forecasts for fiscal 2017. Moreover, the five-quarter long trend of strained margins due to higher shipping and coupon expenses as well as rise in SG&A, are likely to continue in fiscal 2017. However, the company’s transformation plan is on track to deliver a seamless customer experience. Its capital initiatives and constant shareholder-friendly moves also bode well.”

Other analysts have also recently issued research reports about the stock. Argus reiterated a buy rating and set a $40.00 price target (down previously from $48.00) on shares of Bed Bath & Beyond in a research note on Wednesday, June 28th. ValuEngine upgraded shares of Bed Bath & Beyond from a hold rating to a buy rating in a research note on Thursday, July 6th. Barclays PLC decreased their price target on shares of Bed Bath & Beyond from $45.00 to $40.00 and set an equal weight rating for the company in a research note on Friday, June 23rd. Jefferies Group LLC decreased their price target on shares of Bed Bath & Beyond from $41.00 to $34.00 and set a hold rating for the company in a research note on Friday, June 23rd. Finally, Deutsche Bank AG reiterated a hold rating and set a $31.00 price target (down previously from $36.00) on shares of Bed Bath & Beyond in a research note on Sunday, June 25th. Nine equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and one has given a buy rating to the company. The company currently has a consensus rating of Hold and an average target price of $28.12.

Bed Bath & Beyond (BBBY) opened at 23.06 on Friday. The stock has a market cap of $3.23 billion, a PE ratio of 5.89 and a beta of 1.11. Bed Bath & Beyond has a one year low of $22.10 and a one year high of $48.83. The company’s 50 day moving average is $28.41 and its 200 day moving average is $33.64.

Bed Bath & Beyond (NASDAQ:BBBY) last issued its quarterly earnings results on Tuesday, September 19th. The retailer reported $0.67 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.95 by ($0.28). The business had revenue of $2.94 billion for the quarter, compared to analyst estimates of $3.01 billion. Bed Bath & Beyond had a return on equity of 21.74% and a net margin of 4.64%. The firm’s revenue for the quarter was down 1.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.11 EPS. On average, equities research analysts expect that Bed Bath & Beyond will post $3.22 EPS for the current year.

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The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 16th. Investors of record on Friday, December 15th will be paid a $0.15 dividend. The ex-dividend date is Thursday, December 14th. This represents a $0.60 dividend on an annualized basis and a yield of 2.60%. Bed Bath & Beyond’s payout ratio is 15.42%.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Toronto Dominion Bank grew its stake in Bed Bath & Beyond by 19.6% in the 2nd quarter. Toronto Dominion Bank now owns 52,735 shares of the retailer’s stock valued at $1,603,000 after acquiring an additional 8,653 shares during the last quarter. U S Global Investors Inc. acquired a new stake in Bed Bath & Beyond in the 2nd quarter valued at about $409,000. Nomura Holdings Inc. grew its stake in Bed Bath & Beyond by 110.8% in the 2nd quarter. Nomura Holdings Inc. now owns 26,825 shares of the retailer’s stock valued at $815,000 after acquiring an additional 275,609 shares during the last quarter. Bank of Nova Scotia grew its stake in Bed Bath & Beyond by 1,616.3% in the 2nd quarter. Bank of Nova Scotia now owns 531,128 shares of the retailer’s stock valued at $16,147,000 after acquiring an additional 500,182 shares during the last quarter. Finally, Rowland & Co. Investment Counsel ADV grew its stake in Bed Bath & Beyond by 20.6% in the 2nd quarter. Rowland & Co. Investment Counsel ADV now owns 49,448 shares of the retailer’s stock valued at $1,507,000 after acquiring an additional 8,440 shares during the last quarter. 93.30% of the stock is currently owned by hedge funds and other institutional investors.

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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Analyst Recommendations for Bed Bath & Beyond (NASDAQ:BBBY)

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