Stock Traders Buy Large Volume of Call Options on Bath & Body Works (NYSE:BBWI)

Bath & Body Works, Inc. (NYSE:BBWI) was the target of some unusual options trading activity on Friday. Traders acquired 6,948 call options on the stock. This represents an increase of approximately 64% compared to the average volume of 4,230 call options.

Analyst Ratings Changes

Several analysts recently issued reports on BBWI shares. The Goldman Sachs Group downgraded Bath & Body Works from a “neutral” rating to a “sell” rating and lowered their price target for the company from $23.00 to $19.00 in a report on Wednesday, July 8th. Jefferies Financial Group raised their target price on Bath & Body Works from $22.00 to $23.00 and gave the company a “hold” rating in a report on Tuesday, July 28th. Barclays decreased their price target on Bath & Body Works from $23.00 to $22.00 and set an “equal weight” rating for the company in a report on Thursday. TD Cowen boosted their target price on shares of Bath & Body Works from $20.00 to $25.00 and gave the stock a “buy” rating in a research report on Thursday, May 28th. Finally, UBS Group decreased their target price on shares of Bath & Body Works from $19.00 to $17.00 and set a “neutral” rating for the company in a research note on Thursday. Four equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Bath & Body Works currently has an average rating of “Hold” and a consensus target price of $22.29.

Bath & Body Works Stock Up 4.3%

Shares of Bath & Body Works stock traded up $0.80 on Friday, hitting $19.45. 3,256,373 shares of the company’s stock traded hands, compared to its average volume of 5,773,326. Bath & Body Works has a 52-week low of $14.27 and a 52-week high of $32.32. The stock has a market cap of $3.92 billion, a P/E ratio of 5.07, a PEG ratio of 1.84 and a beta of 1.38. The firm’s 50-day moving average is $20.32 and its 200 day moving average is $19.97.

Bath & Body Works (NYSE:BBWI) last issued its quarterly earnings results on Wednesday, August 26th. The company reported $0.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.38. The business had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.50 billion. Bath & Body Works had a net margin of 10.83% and a negative return on equity of 53.48%. The business’s revenue was down 2.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.30 earnings per share. Bath & Body Works has set its Q3 2026 guidance at 0.070-0.120 EPS and its FY 2026 guidance at 2.600-2.800 EPS. Equities research analysts forecast that Bath & Body Works will post 2.67 EPS for the current year.

Bath & Body Works Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Friday, August 21st will be given a $0.20 dividend. The ex-dividend date of this dividend is Friday, August 21st. This represents a $0.80 annualized dividend and a dividend yield of 4.1%. Bath & Body Works’s payout ratio is presently 20.83%.

Hedge Funds Weigh In On Bath & Body Works

Several large investors have recently modified their holdings of BBWI. BlackRock Inc. acquired a new position in Bath & Body Works in the second quarter worth about $449,065,000. AQR Capital Management LLC lifted its holdings in Bath & Body Works by 132.5% during the 4th quarter. AQR Capital Management LLC now owns 11,445,928 shares of the company’s stock worth $229,834,000 after buying an additional 6,523,960 shares during the last quarter. California State Teachers Retirement System lifted its holdings in Bath & Body Works by 2,145.0% during the 2nd quarter. California State Teachers Retirement System now owns 5,363,801 shares of the company’s stock worth $124,065,000 after buying an additional 5,124,881 shares during the last quarter. Norges Bank acquired a new position in shares of Bath & Body Works in the 4th quarter worth approximately $55,504,000. Finally, Balyasny Asset Management L.P. acquired a new position in shares of Bath & Body Works in the 4th quarter worth approximately $54,785,000. Institutional investors own 95.14% of the company’s stock.

Bath & Body Works Company Profile

Bath & Body Works, Inc is a leading specialty retailer focused on personal care, home fragrance and complementary products. Through its flagship Bath & Body Works brand, the company offers a diverse assortment of shower gels, lotions, fragrance mists, candles and home fragrance items. Its product portfolio also includes the White Barn Candle Co range of premium scented candles and diffusers. Bath & Body Works serves consumers through a combination of brick-and-mortar stores and e-commerce platforms, delivering seasonal collections, limited-edition releases and signature scent lines.

Founded in 1990 as part of Limited Brands (now L Brands), Bath & Body Works opened its first store in New Albany, Ohio, and quickly expanded across the United States.