Zacks Investment Research lowered shares of Bed Bath & Beyond (NASDAQ:BBBY) from a buy rating to a hold rating in a research report sent to investors on Wednesday morning.
According to Zacks, “Bed Bath & Beyond’s transformation plan and store-expansion initiatives to drive growth are impressive. The company has been witnessing robust sales at customer-facing digital networks, which is likely to continue in fiscal 2018. Moreover, it remains on track to achieve its three-year financial target of improving EPS by fiscal 2020. The company has also been making investments toward digital advancements and development of new systems along with store openings to expand its omni-channel capabilities. However, Bed Bath & Beyond has lagged the industry in the past three months due to dismal second-quarter fiscal 2018 results. This marked its first earnings and sales miss in the last four quarters. Moreover, its nine-quarter long trend of strained margins due to higher shipping and coupon as well as SG&A expenses is likely to continue in fiscal 2018. Nevertheless, estimates have been stable lately.”
Several other equities research analysts also recently weighed in on the stock. Deutsche Bank set a $14.00 price target on shares of Bed Bath & Beyond and gave the company a hold rating in a research report on Thursday, September 27th. Telsey Advisory Group reduced their price target on shares of Bed Bath & Beyond from $20.00 to $16.00 and set a market perform rating for the company in a research report on Thursday, September 27th. Wedbush set a $15.00 price target on shares of Bed Bath & Beyond and gave the company a hold rating in a research report on Thursday, September 27th. JPMorgan Chase & Co. reduced their price target on shares of Bed Bath & Beyond from $16.00 to $14.00 and set an underweight rating for the company in a research report on Thursday, September 27th. Finally, Citigroup reduced their price target on shares of Bed Bath & Beyond from $13.00 to $10.00 and set a sell rating for the company in a research report on Monday, December 3rd. Nine analysts have rated the stock with a sell rating and eleven have assigned a hold rating to the company. The company currently has a consensus rating of Hold and a consensus target price of $15.64.
Shares of NASDAQ BBBY traded down $0.51 on Wednesday, reaching $11.83. 76,420 shares of the company’s stock traded hands, compared to its average volume of 4,343,400. Bed Bath & Beyond has a 12 month low of $11.95 and a 12 month high of $24.74. The company has a market capitalization of $1.70 billion, a price-to-earnings ratio of 3.77, a P/E/G ratio of 6.13 and a beta of 0.92. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.60 and a current ratio of 1.75.
Bed Bath & Beyond (NASDAQ:BBBY) last announced its earnings results on Wednesday, September 26th. The retailer reported $0.36 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.49 by ($0.13). Bed Bath & Beyond had a net margin of 2.81% and a return on equity of 12.52%. The business had revenue of $2.94 billion for the quarter, compared to the consensus estimate of $2.96 billion. During the same period in the prior year, the business posted $0.77 EPS. Bed Bath & Beyond’s revenue for the quarter was up .0% on a year-over-year basis. On average, analysts forecast that Bed Bath & Beyond will post 2.01 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Tuesday, January 15th. Shareholders of record on Friday, December 14th will be given a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a yield of 5.41%. The ex-dividend date is Thursday, December 13th. Bed Bath & Beyond’s dividend payout ratio (DPR) is presently 20.51%.
A number of large investors have recently bought and sold shares of the business. Signaturefd LLC grew its position in Bed Bath & Beyond by 124.8% in the 2nd quarter. Signaturefd LLC now owns 5,930 shares of the retailer’s stock worth $118,000 after purchasing an additional 3,292 shares during the period. Alps Advisors Inc. grew its position in Bed Bath & Beyond by 13.7% in the 2nd quarter. Alps Advisors Inc. now owns 27,957 shares of the retailer’s stock worth $557,000 after purchasing an additional 3,369 shares during the period. Tower Research Capital LLC TRC grew its position in Bed Bath & Beyond by 23.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 19,891 shares of the retailer’s stock worth $396,000 after purchasing an additional 3,763 shares during the period. Systematic Financial Management LP grew its position in Bed Bath & Beyond by 7.5% in the 2nd quarter. Systematic Financial Management LP now owns 60,265 shares of the retailer’s stock worth $1,201,000 after purchasing an additional 4,220 shares during the period. Finally, Cadence Capital Management LLC grew its position in Bed Bath & Beyond by 20.9% in the 2nd quarter. Cadence Capital Management LLC now owns 25,079 shares of the retailer’s stock worth $500,000 after purchasing an additional 4,339 shares during the period. 97.51% of the stock is owned by institutional investors and hedge funds.
About Bed Bath & Beyond
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 various juvenile products.
See Also: Return on Investment (ROI)
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