Victoria’s Secret & Co. (NYSE:VSXY) Shares Gap Down – What’s Next?

Victoria’s Secret & Co. (NYSE:VSXY) shares gapped down prior to trading on Wednesday . The stock had previously closed at $80.06, but opened at $75.55. Victoria’s Secret & Co. shares last traded at $73.30, with a volume of 1,299,738 shares trading hands.

Victoria’s Secret & Co. News Roundup

Here are the key news stories impacting Victoria’s Secret & Co. this week:

• Positive Sentiment: Victoria’s Secret posted stronger-than-expected Q1 results, with sales and earnings topping guidance and management raising its full-year outlook. Reuters article
• Positive Sentiment: Wells Fargo and Telsey Advisory Group both raised their price targets to $90 and maintained bullish ratings, reinforcing confidence in the turnaround story. Benzinga article
• Positive Sentiment: All three independent proxy advisors recommended shareholders vote for the company’s nominees, reducing governance-related uncertainty ahead of the annual meeting. GlobeNewswire article
• Neutral Sentiment: Several commentary pieces highlighted that the stock’s sharp rally has pushed valuation higher, and one Seeking Alpha note downgraded the shares to Hold because the risk/reward is less compelling after the surge.
• Neutral Sentiment: Market commentary points to Victoria’s Secret’s brand reset, improved pricing power, and revived core identity as the basis for the stock’s recent momentum.

Analysts Set New Price Targets

Several research firms have recently commented on VSXY. Jefferies Financial Group cut Victoria’s Secret & Co. from a “buy” rating to a “hold” rating and raised their price target for the company from $65.00 to $73.00 in a report on Wednesday. UBS Group downgraded Victoria’s Secret & Co. from a “buy” rating to a “neutral” rating and raised their price target for the stock from $81.00 to $90.00 in a research report on Wednesday. Barclays lifted their price objective on Victoria’s Secret & Co. from $67.00 to $108.00 and gave the company an “overweight” rating in a research report on Wednesday. Wall Street Zen downgraded Victoria’s Secret & Co. from a “strong-buy” rating to a “buy” rating in a research report on Sunday, April 5th. Finally, Wells Fargo & Company boosted their price target on Victoria’s Secret & Co. from $57.00 to $90.00 and gave the company an “overweight” rating in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $79.80.

Victoria’s Secret & Co. Price Performance

The company has a 50-day moving average price of $51.00 and a two-hundred day moving average price of $52.60. The company has a debt-to-equity ratio of 1.07, a current ratio of 1.25 and a quick ratio of 0.54. The company has a market cap of $5.81 billion, a PE ratio of 39.30, a P/E/G ratio of 1.36 and a beta of 2.16.

Victoria’s Secret & Co. (NYSE:VSXY) last issued its earnings results on Tuesday, June 2nd. The company reported $0.60 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.31. Victoria’s Secret & Co. had a return on equity of 38.95% and a net margin of 3.11%.The company had revenue of $1.56 billion during the quarter, compared to the consensus estimate of $1.52 billion. During the same quarter in the prior year, the business earned $0.09 earnings per share. Sell-side analysts expect that Victoria’s Secret & Co. will post 3.49 earnings per share for the current fiscal year.

Insider Transactions at Victoria’s Secret & Co.

In related news, major shareholder International Pte Ltd Bbrc sold 27,758 shares of the business’s stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $80.03, for a total value of $2,221,472.74. Following the transaction, the insider owned 9,175,201 shares in the company, valued at approximately $734,291,336.03. The trade was a 0.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Anne Sheehan purchased 4,842 shares of the business’s stock in a transaction that occurred on Thursday, April 2nd. The stock was acquired at an average price of $45.86 per share, for a total transaction of $222,054.12. Following the purchase, the director owned 34,261 shares of the company’s stock, valued at approximately $1,571,209.46. This represents a 16.46% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 0.52% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of VSXY. Baird Financial Group Inc. acquired a new position in shares of Victoria’s Secret & Co. in the first quarter worth about $233,000. Royal Bank of Canada lifted its stake in shares of Victoria’s Secret & Co. by 279.1% in the first quarter. Royal Bank of Canada now owns 47,839 shares of the company’s stock worth $888,000 after acquiring an additional 35,220 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Victoria’s Secret & Co. by 2.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 62,949 shares of the company’s stock worth $1,170,000 after acquiring an additional 1,797 shares in the last quarter. Invesco Ltd. lifted its stake in shares of Victoria’s Secret & Co. by 8.0% in the second quarter. Invesco Ltd. now owns 772,884 shares of the company’s stock worth $14,314,000 after acquiring an additional 57,048 shares in the last quarter. Finally, First Trust Advisors LP lifted its stake in shares of Victoria’s Secret & Co. by 194.4% in the second quarter. First Trust Advisors LP now owns 152,625 shares of the company’s stock worth $2,827,000 after acquiring an additional 100,787 shares in the last quarter. Institutional investors and hedge funds own 90.29% of the company’s stock.

About Victoria’s Secret & Co.

Victoria’s Secret & Co is a leading designer, manufacturer and marketer of intimate apparel, beauty products and accessories for women. The company operates a portfolio of brands that includes Victoria’s Secret, renowned for its lingerie, bras and sleepwear; PINK, a line targeting younger consumers with activewear and lifestyle products; and Victoria’s Secret Beauty, offering fragrances, cosmetics and personal care items. Products are sold through retail stores as well as direct-to-consumer channels, including e-commerce platforms and mobile applications.

The origins of Victoria’s Secret date back to 1977, when founders Roy and Gaye Raymond opened the first store in San Francisco.