Zacks Investment Research Downgrades Bed Bath & Beyond (BBBY) to Strong Sell
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.”
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.
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.
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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.
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