L Brands (NYSE:LB)‘s stock had its “hold” rating restated by Guggenheim in a report issued on Thursday.
The analysts wrote, “We remain NEUTRAL rated. In March, total company comp sales increased 4%, or +2% excluding a 2% point benefit from an earlier Easter, ~in line with our +LSD expectations. The LB total comp increase of 4% (stores flat) included a 1% increase at Victoria’s Secret (stores -3%) and a 10% increase at Bath & Body Works (stores +9%). The company expects April comp sales results will be negatively impacted by 2-3% points from the Easter timing shift. For the total company, March sales increased 7% to $1.02bn. VS total comps increased 1% in March (stores -3%), decelerating m-o-m (+2% in Feb) despite benefits from an earlier Easter. VS comp growth was attributed to solid trends in Beauty and modest growth in Lingerie, partially offset by a decline in PINK (which was flat in February and grew slightly in 4Q).””
Several other analysts also recently issued reports on LB. Morgan Stanley reissued an “overweight” rating and issued a $70.00 price target on shares of L Brands in a research report on Thursday, December 14th. BMO Capital Markets set a $56.00 price objective on shares of L Brands and gave the stock a “hold” rating in a report on Tuesday, December 19th. Robert W. Baird reaffirmed a “hold” rating and set a $60.00 price objective on shares of L Brands in a report on Friday, December 22nd. Telsey Advisory Group lifted their price objective on shares of L Brands from $64.00 to $70.00 and gave the stock an “outperform” rating in a report on Tuesday, January 2nd. Finally, Wells Fargo set a $48.00 price objective on shares of L Brands and gave the stock a “hold” rating in a report on Thursday, January 4th. Seven investment analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and eleven have issued a buy rating to the company’s stock. L Brands has an average rating of “Hold” and an average price target of $49.37.
L Brands (NYSE:LB) last posted its quarterly earnings results on Wednesday, February 28th. The specialty retailer reported $2.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.06. L Brands had a net margin of 7.78% and a negative return on equity of 101.69%. The business had revenue of $4.82 billion during the quarter, compared to the consensus estimate of $4.72 billion. During the same quarter last year, the firm posted $2.03 EPS. L Brands’s revenue was up 7.4% compared to the same quarter last year. sell-side analysts expect that L Brands will post 3.17 earnings per share for the current year.
L Brands announced that its Board of Directors has initiated a share buyback plan on Thursday, March 8th that permits the company to repurchase $226.90 million in outstanding shares. This repurchase authorization permits the specialty retailer to repurchase shares of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its stock is undervalued.
In related news, CFO Stuart B. Burgdoerfer sold 17,000 shares of the business’s stock in a transaction dated Wednesday, March 21st. The stock was sold at an average price of $39.56, for a total value of $672,520.00. Following the sale, the chief financial officer now directly owns 52,640 shares in the company, valued at approximately $2,082,438.40. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Stuart B. Burgdoerfer sold 33,000 shares of the business’s stock in a transaction dated Tuesday, March 13th. The shares were sold at an average price of $42.53, for a total value of $1,403,490.00. Following the completion of the sale, the chief financial officer now owns 69,640 shares in the company, valued at $2,961,789.20. The disclosure for this sale can be found here. Insiders own 16.68% of the company’s stock.
A number of institutional investors have recently made changes to their positions in the stock. American International Group Inc. raised its stake in L Brands by 74.8% in the 4th quarter. American International Group Inc. now owns 10,436,938 shares of the specialty retailer’s stock valued at $628,512,000 after acquiring an additional 4,466,237 shares during the period. Barrow Hanley Mewhinney & Strauss LLC increased its position in shares of L Brands by 29.0% during the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 4,156,510 shares of the specialty retailer’s stock valued at $172,952,000 after buying an additional 935,259 shares during the period. Bank of New York Mellon Corp increased its position in shares of L Brands by 1.5% during the fourth quarter. Bank of New York Mellon Corp now owns 2,638,420 shares of the specialty retailer’s stock valued at $158,886,000 after buying an additional 40,263 shares during the period. Geode Capital Management LLC increased its position in shares of L Brands by 2.7% during the fourth quarter. Geode Capital Management LLC now owns 2,618,820 shares of the specialty retailer’s stock valued at $157,378,000 after buying an additional 68,751 shares during the period. Finally, Amundi Pioneer Asset Management Inc. bought a new stake in shares of L Brands during the fourth quarter valued at about $120,549,000. Institutional investors and hedge funds own 81.06% of the company’s stock.
About L Brands
L Brands, Inc operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. The company operates in three segments: Victoria's Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International. Its products include loungewear, bras, panties, swimwear, athletic attire, fragrances, shower gels and lotions, aromatherapy, soaps and sanitizers, home fragrances, handbags, jewelry, and personal care accessories.
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