Skandinaviska Enskilda Banken AB publ, a Swedish financial institution, has recently increased its holdings in Bath & Body Works, Inc. (NYSE:BBWI) by 89.1% during the fourth quarter of 2022. According to their most recent 13F filing with the Securities and Exchange Commission (SEC), the institutional investor now has ownership of 77,710 shares of Bath & Body Works’ stock, worth approximately $3,275,000.
Bath & Body Works is a well-known American specialty retailer that offers an array of exclusive fragrances for both the body and home. The company’s product assortment includes fine fragrance mist, body lotion and cream, three-wick candles, home fragrance diffusers and liquid hand soap.
Shares of Bath & Body Works opened at $31.83 on May 11th with a market cap of $7.28 billion. The company has a price-to-earnings ratio (PE) of 9.23 with a relatively low price-to-earnings growth ratio (PEG) of 0.88 and a beta of 1.70.
The stock’s performance over the past year shows great volatility with a twelve month low price falling to $25.75 and soaring up to a twelve month high price of $51.58. Currently trading at around $35 per share with its 50-day moving average price at $35.86 and its 200-day moving average price at $39.40.
Skandinaviska Enskilda Banken AB publ’s significant increase in their holdings signals the bank’s confidence in Bath & Body Works’ ability to grow as a business leading into Q2 and Q3 – two crucial seasons for retail companies like them.
This move by Skandinaviska Enskilda Banken AB publ follows previous actions by big banks investing in retail companies as they are proven to be resilient against the ever-changing market conditions. The retail industry is heavily influenced by consumer behavior, globalization, and technological advancements – making investing in them a risky but potentially profitable venture.
Overall, Skandinaviska Enskilda Banken AB publ’s recent acquisition of additional shares in Bath & Body Works may influence other investors to follow suit, helping strengthen the bond between the financial institution and American specialty retailer. Only time can tell if this strategic move would bring positive yields for both parties involved.
Bath & Body Works Attracts Hedge Fund Attention and Insider Selling Raises Concerns
Bath & Body Works, Inc., a specialty retailer known for its exclusive fragrances for the body and home, recently attracted attention from hedge funds looking to make changes to their positions. State of Alaska Department of Revenue increased its position in the company, now owning 31,965 shares worth $1,347,000. Captrust Financial Advisors boosted its position by 10.4%, while State of Michigan Retirement System and Toroso Investments LLC raised their stakes by 0.5% and 3.7%, respectively. CWM LLC increased its stake by 14.3%. These changes come as 96.34% of the stock is currently owned by hedge funds and other institutional investors.
In other news, CFO Wendy C. Arlin sold over 1,600 shares in March at an average price of $38.29 for a total value of $62,221.25. She now holds over 91,000 shares valued at approximately $3.4 million.
The Q4 earnings report showed Bath & Body Works had a net margin of 10.58% and a negative return on equity of 31.34%. The company reported EPS of $1.86 per share compared to a consensus estimate of $1.63 on revenue of $2.89 billion versus estimates of $2.81 billion.
Sell-side analysts have given mixed ratings to the stock, with one rating it as a sell, nine assigning it a hold rating and eleven giving it a buy rating with an average target price of $47.90.
Despite the recent changes in hedge fund positions and insider selling activities, Bath & Body Works remains a popular destination for customers seeking unique fragrances and luxurious home goods at affordable prices with great user reviews online that prove that they are reputable brand loved by many people across the US making them an investment worth considering for some investors looking for solid growth opportunities in the retail industry.
