Zacks Investment Research cut shares of Bed Bath & Beyond (NASDAQ:BBBY) from a hold rating to a strong sell rating in a research note issued to investors on Monday.

According to Zacks, “Bed Bath & Beyond lagged the industry in the past three months owing to a soft comps and margins trend in recent quarters. Comps declined in fourth-quarter fiscal 2017 due to fall in number of store transactions. Moreover, it has a seven-quarter long trend of strained margins due to higher shipping and coupon expenses, which along with a rise in SG&A is likely to hurt results in fiscal 2018. Consequently, the company issued a bleak view for fiscal 2018. However, the company’s top and bottom lines surpassed estimates in fourth-quarter fiscal 2017, which marked its second straight earnings and sales beat. Results were driven by solid sales growth owing to progress on its transformation efforts and other customer-centric initiatives. Further, its transformation plan is on track to deliver a seamless customer experience. Its solid sales across customer-facing digital channels are also likely to continue in fiscal 2018.”

How to Become a New Pot Stock Millionaire

Other analysts also recently issued research reports about the company. ValuEngine downgraded Bed Bath & Beyond from a strong-buy rating to a buy rating in a research report on Sunday, December 31st. TheStreet raised Bed Bath & Beyond from a d+ rating to a c rating in a research report on Wednesday, April 11th. Barclays lowered their target price on Bed Bath & Beyond from $30.00 to $25.00 and set an equal weight rating on the stock in a research report on Thursday, December 21st. Loop Capital set a $23.00 target price on Bed Bath & Beyond and gave the company a hold rating in a research report on Thursday, January 4th. Finally, Wedbush set a $23.00 target price on Bed Bath & Beyond and gave the company a hold rating in a research report on Wednesday, December 27th. Eleven analysts have rated the stock with a sell rating, eleven have issued a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has an average rating of Hold and an average price target of $23.00.

NASDAQ:BBBY opened at $17.49 on Monday. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.57 and a current ratio of 1.83. The stock has a market capitalization of $2,427.81, a P/E ratio of 5.61, a P/E/G ratio of -3.76 and a beta of 1.00. Bed Bath & Beyond has a 52-week low of $17.19 and a 52-week high of $40.33.

Bed Bath & Beyond (NASDAQ:BBBY) last released its earnings results on Wednesday, April 11th. The retailer reported $1.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.41 by $0.07. The business had revenue of $3.72 billion for the quarter, compared to the consensus estimate of $3.68 billion. Bed Bath & Beyond had a return on equity of 16.45% and a net margin of 3.44%. Bed Bath & Beyond’s quarterly revenue was up 5.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.84 earnings per share. analysts anticipate that Bed Bath & Beyond will post 2.3 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 17th. Shareholders of record on Friday, June 15th will be given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 3.66%. The ex-dividend date is Thursday, June 14th. This is an increase from Bed Bath & Beyond’s previous quarterly dividend of $0.15. Bed Bath & Beyond’s payout ratio is 19.23%.

Hedge funds and other institutional investors have recently made changes to their positions in the business. Cerebellum GP LLC acquired a new position in Bed Bath & Beyond during the fourth quarter worth approximately $121,000. Captrust Financial Advisors bought a new stake in shares of Bed Bath & Beyond during the fourth quarter worth approximately $151,000. Cornerstone Capital Management Holdings LLC. bought a new stake in shares of Bed Bath & Beyond during the fourth quarter worth approximately $149,000. State of Alaska Department of Revenue bought a new stake in shares of Bed Bath & Beyond during the fourth quarter worth approximately $180,000. Finally, Alps Advisors Inc. bought a new stake in shares of Bed Bath & Beyond during the fourth quarter worth approximately $223,000. 91.36% of the stock is currently owned by hedge funds and other institutional investors.

COPYRIGHT VIOLATION NOTICE: This piece of content was originally posted by Daily Political and is the sole property of of Daily Political. If you are reading this piece of content on another domain, it was stolen and republished in violation of United States & international trademark & copyright law. The legal version of this piece of content can be read at https://www.dailypolitical.com/2018/04/17/zacks-investment-research-downgrades-bed-bath-beyond-bbby-to-strong-sell.html.

Bed Bath & Beyond Company Profile

Bed Bath & Beyond Inc, together with its subsidiaries, operates a chain of retail stores. It sells a range of domestics merchandise, including bed linens and related items, bath items, and kitchen textiles; and home furnishings, such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings, consumables, and juvenile products.

Get a free copy of the Zacks research report on Bed Bath & Beyond (BBBY)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

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

Receive News & Ratings for Bed Bath & Beyond Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bed Bath & Beyond and related companies with MarketBeat.com's FREE daily email newsletter.