Bed Bath & Beyond (BBBY) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Bed Bath & Beyond (NASDAQ:BBBY) from a hold rating to a strong sell rating in a research note issued to investors on Wednesday morning.

According to Zacks, “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. However, 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. Further, estimates have been stable lately.”

Several other research analysts also recently commented on the company. Wells Fargo & Co reaffirmed a sell rating and set a $11.00 target price on shares of Bed Bath & Beyond in a report on Monday, January 7th. Wedbush reaffirmed a neutral rating and set a $15.00 target price on shares of Bed Bath & Beyond in a report on Friday, January 4th. Telsey Advisory Group reaffirmed a market perform rating and set a $13.00 target price (down from $16.00) on shares of Bed Bath & Beyond in a report on Friday, January 4th. BidaskClub raised Bed Bath & Beyond from a hold rating to a buy rating in a report on Thursday, December 20th. Finally, Citigroup cut their target price on Bed Bath & Beyond from $13.00 to $10.00 and set a sell rating on the stock in a report on Monday, December 3rd. Ten investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and one has given a buy rating to the company. Bed Bath & Beyond presently has a consensus rating of Hold and a consensus price target of $13.93.

BBBY traded up $0.94 during midday trading on Wednesday, hitting $15.23. 26,441,614 shares of the company were exchanged, compared to its average volume of 17,131,627. The company has a market capitalization of $1.69 billion, a PE ratio of 4.88, a PEG ratio of 6.08 and a beta of 0.90. Bed Bath & Beyond has a 1-year low of $10.46 and a 1-year high of $24.08. 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 (NASDAQ:BBBY) last announced its earnings results on Wednesday, January 9th. The retailer reported $0.18 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.17 by $0.01. The firm had revenue of $3.03 billion for the quarter, compared to the consensus estimate of $3.04 billion. Bed Bath & Beyond had a return on equity of 11.08% and a net margin of 2.50%. The business’s quarterly revenue was up 2.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.44 EPS. Equities research analysts predict that Bed Bath & Beyond will post 2.02 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 16th. Stockholders of record on Friday, March 15th will be paid a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 4.20%. The ex-dividend date of this dividend is Thursday, March 14th. Bed Bath & Beyond’s dividend payout ratio is 20.51%.

Several large investors have recently made changes to their positions in BBBY. BlackRock Inc. lifted its stake in shares of Bed Bath & Beyond by 28.0% in the 2nd quarter. BlackRock Inc. now owns 15,909,818 shares of the retailer’s stock valued at $317,003,000 after purchasing an additional 3,478,265 shares during the period. Renaissance Technologies LLC acquired a new position in Bed Bath & Beyond during the 2nd quarter worth approximately $1,426,000. OppenheimerFunds Inc. raised its stake in Bed Bath & Beyond by 14.1% during the 2nd quarter. OppenheimerFunds Inc. now owns 185,336 shares of the retailer’s stock worth $3,693,000 after buying an additional 22,958 shares during the period. Glen Harbor Capital Management LLC raised its stake in Bed Bath & Beyond by 90.2% during the 2nd quarter. Glen Harbor Capital Management LLC now owns 24,398 shares of the retailer’s stock worth $486,000 after buying an additional 11,572 shares during the period. Finally, Dynamic Technology Lab Private Ltd acquired a new position in Bed Bath & Beyond during the 2nd quarter worth approximately $703,000. 97.45% of the stock is currently owned by institutional investors.

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.

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