Bed Bath & Beyond (BBBY) Cut to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Bed Bath & Beyond (NASDAQ:BBBY) from a hold rating to a sell rating in a research report sent to investors on Wednesday, September 12th.

According to Zacks, “Bed Bath & Beyond underperformed the industry in the last three months owing to bleak earnings outlook for fiscal 2018. Further, the company has been witnessing soft comps for a while now due to decline in number of stores transactions. Moreover, the company’s eight-quarter long trend of strained margins due to higher shipping and coupon, as well as SG&A expenses remains a headwind. For fiscal 2018, the company expects gross margin contraction due to investments in customer value proposition and the constant shift to the digital channels. However, the company is progressing well with its transformation efforts and other customer-centric initiatives. Also, it has an impressive surprise trend, marking third consecutive earnings and sales beat in first-quarter fiscal 2018. Further, strong performance at its customer-facing digital networks and progress in transformation plan drive optimism.”

BBBY has been the topic of several other reports. BidaskClub raised shares of Bed Bath & Beyond from a hold rating to a buy rating in a research note on Tuesday, June 12th. Wells Fargo & Co reiterated a sell rating and set a $16.00 target price on shares of Bed Bath & Beyond in a research report on Wednesday, June 27th. Credit Suisse Group set a $20.00 target price on shares of Bed Bath & Beyond and gave the stock a hold rating in a research report on Friday, June 29th. Finally, Standpoint Research lowered shares of Bed Bath & Beyond from a buy rating to a hold rating in a research report on Tuesday, August 14th. Ten investment analysts have rated the stock with a sell rating and twelve have given a hold rating to the company. The company has a consensus rating of Hold and an average target price of $17.07.

Shares of BBBY stock traded down $0.32 on Wednesday, hitting $13.90. The company’s stock had a trading volume of 4,601,540 shares, compared to its average volume of 4,425,198. The company has a current ratio of 1.75, a quick ratio of 0.60 and a debt-to-equity ratio of 0.51. Bed Bath & Beyond has a fifty-two week low of $13.78 and a fifty-two week high of $24.74. The firm has a market cap of $2.10 billion, a PE ratio of 4.46, a PEG ratio of 7.43 and a beta of 0.96.

Bed Bath & Beyond (NASDAQ:BBBY) last released 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 return on equity of 12.52% and a net margin of 2.81%. The firm had revenue of $2.94 billion for the quarter, compared to analyst estimates of $2.96 billion. During the same period in the prior year, the firm earned $0.77 EPS. The firm’s revenue was up .0% on a year-over-year basis. As a group, analysts forecast that Bed Bath & Beyond will post 2.02 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, January 15th. Shareholders of record on Friday, December 14th will be paid a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a yield of 4.60%. The ex-dividend date of this dividend is Thursday, December 13th. Bed Bath & Beyond’s dividend payout ratio is currently 20.51%.

Hedge funds have recently made changes to their positions in the business. Towle & Co. lifted its stake in Bed Bath & Beyond by 35.4% in the second quarter. Towle & Co. now owns 1,809,040 shares of the retailer’s stock valued at $36,045,000 after acquiring an additional 472,860 shares during the last quarter. Strs Ohio acquired a new stake in shares of Bed Bath & Beyond during the 2nd quarter worth about $1,436,000. OMERS ADMINISTRATION Corp acquired a new stake in shares of Bed Bath & Beyond during the 2nd quarter worth about $406,000. Riverhead Capital Management LLC lifted its stake in shares of Bed Bath & Beyond by 89.6% during the 2nd quarter. Riverhead Capital Management LLC now owns 27,720 shares of the retailer’s stock worth $552,000 after buying an additional 13,100 shares during the last quarter. Finally, United Services Automobile Association lifted its stake in shares of Bed Bath & Beyond by 696.6% during the 2nd quarter. United Services Automobile Association now owns 172,136 shares of the retailer’s stock worth $9,858,000 after buying an additional 150,527 shares during the last quarter. Hedge funds and other institutional investors own 93.17% of the company’s stock.

Bed Bath & Beyond Company Profile

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.

Further Reading: Asset Allocation

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