Citigroup has recently raised Bath & Body Works Inc (BBWI) stock to Buy rating, as announced on February 28, 2025, according to Finviz. Earlier, on February 24, 2025, Barclays had raised the stock from a Underweight to Equal Weight, setting a price target of $43 for BBWI stock. JP Morgan also raised Overweight rating with a price target of $47. Additionally, Wells Fargo raised Overweight rating on January 10, 2025, with a target price of $48. Telsey Advisory Group analysts, in their report published on November 26, 2024, also reiterated Outperform rating and set a price target of $43 for Bath & Body Works Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Bath & Body Works Inc (BBWI) Stock Trading Recap
On Tuesday, Bath & Body Works Inc (BBWI) stock saw a decline, ending the day at $29.80 which represents a decrease of $-0.66 or -2.17% from the prior close of $30.46. The stock opened at $30.97 and touched a low of $29.38 during the day, reaching a high of $31.8. The volume of shares traded was 6.50 million exceeding the average volume of 3.87 million.
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BBWI Stock Performance and Moving Averages
In recent trading, Bath & Body Works Inc (BBWI) stock price has shown some volatility, fluctuating -12.99% over the last five trades and -16.97% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 4.23%, and it has plunged by -18.98% in the previous three months. Currently, BBWI is trading at -18.17%, -19.49%, and -16.41% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, BBWI, a Consumer Cyclical sector stock, is trading -43.76% below its 52-week high but remains 13.72% above its 52-week low. The Average True Range (ATR) (14 days) of 1.93 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Bath & Body Works Inc’s Profitability and Valuation Ratios
Bath & Body Works Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 17.26% and a profit margin of 12.43%, with a gross margin of 4.23%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Bath & Body Works Inc’s market capitalization stands at $6.45 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 7.27, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 7.46. Additionally, the Price-to-Sales Ratio is 0.87, reflecting the market’s valuation of the company’s sales.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.24% of Bath & Body Works Inc (BBWI)’s shares, while financial institutions hold 98.10%.
Notable insider trades include Nash Sarah E, Director at Bath & Body Works Inc (BBWI), who sold 48,000 shares on Jun 18 ’24, at $41.50 each, totaling $1.99 million. On Mar 27 ’24, Mazurek Thomas E., Chief Supply Chain Officer, sold 4,285 shares for $48.89 each, amounting to $0.21 million.
