Bath & Body Works (NYSE:BBWI) Stock Price Down 8% – What’s Next?

Bath & Body Works, Inc. (NYSE:BBWI)’s share price dropped 8% during mid-day trading on Friday . The company traded as low as $20.47 and last traded at $20.51. Approximately 1,083,412 shares traded hands during trading, a decline of 79% from the average daily volume of 5,124,963 shares. The stock had previously closed at $22.29.

Key Stories Impacting Bath & Body Works

Here are the key news stories impacting Bath & Body Works this week:

• Positive Sentiment: Company beat Q4 EPS and revenue expectations and outlined a Consumer First growth plan that management says will drive longer‑term improvement. BBWI Beats on Q4 Earnings, Unveils Growth Strategy Amid Soft Demand
• Positive Sentiment: Several analysts raised forecasts and price targets after the quarter (examples: Telsey upped to $25, Deutsche Bank to $22), providing support for upside vs. recent levels. These Analysts Raise Their Forecasts On Bath & Body Works Following Q4 Results
• Positive Sentiment: Several bullish commentary pieces framed BBWI as a deep‑value / turnaround opportunity following the quarter. Bath & Body Works: A Deep Value Opportunity That’s Too Cheap To Ignore
• Neutral Sentiment: Barclays maintained a hold rating (no upgrade), reflecting mixed analyst views on near‑term demand even after the beat. Barclays Sticks to Their Hold Rating for Bath & Body Works (BBWI)
• Neutral Sentiment: Management says the strategic shift is making progress but “will take time,” a cautious tone that tempers the immediate impact of the earnings beat. Bath & Body Works Says Strategy Shift Making Progress But ‘Will Take Time’
• Negative Sentiment: Multiple law firms have filed or are soliciting lead‑plaintiff applicants in a securities class action covering June 4, 2024–Nov 19, 2025, with lead‑plaintiff deadlines in mid‑March — these recurring headlines raise near‑term legal and reputational risk that can pressure the stock. Representative notices: BBWI FINAL DEADLINE: ROSEN, SKILLED INVESTOR COUNSEL… The Gross Law Firm Reminds Shareholders of a Lead Plaintiff Deadline… BBWI Investors Have Opportunity to Lead Bath & Body Works Inc Securities Fraud Lawsuit…

Wall Street Analyst Weigh In

Several research firms have recently weighed in on BBWI. Citigroup lowered shares of Bath & Body Works from a “buy” rating to a “neutral” rating and lifted their price objective for the company from $21.00 to $25.00 in a research note on Tuesday, February 17th. JPMorgan Chase & Co. cut their target price on shares of Bath & Body Works from $26.00 to $15.00 and set a “neutral” rating on the stock in a research note on Thursday, November 20th. UBS Group raised their price target on shares of Bath & Body Works from $21.00 to $22.00 and gave the stock a “neutral” rating in a report on Monday, February 23rd. Robert W. Baird set a $20.00 price target on shares of Bath & Body Works in a research note on Wednesday, December 17th. Finally, Telsey Advisory Group upped their price objective on shares of Bath & Body Works from $23.00 to $25.00 and gave the company a “market perform” rating in a report on Thursday. Three investment analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $24.00.

Bath & Body Works Price Performance

The company has a fifty day moving average of $22.39 and a 200-day moving average of $23.47. The firm has a market cap of $4.27 billion, a P/E ratio of 6.62, a P/E/G ratio of 2.11 and a beta of 1.48.

Bath & Body Works (NYSE:BBWI) last issued its quarterly earnings data on Wednesday, March 4th. The company reported $2.05 earnings per share for the quarter, beating the consensus estimate of $1.77 by $0.28. The business had revenue of $2.72 billion for the quarter, compared to analysts’ expectations of $2.59 billion. Bath & Body Works had a negative return on equity of 45.60% and a net margin of 8.90%.The business’s revenue was down 2.3% on a year-over-year basis. During the same period last year, the business earned $2.09 EPS. Bath & Body Works has set its Q1 2026 guidance at 0.240-0.300 EPS and its FY 2026 guidance at 2.400-2.650 EPS. On average, sell-side analysts expect that Bath & Body Works, Inc. will post 3.3 EPS for the current fiscal year.

Bath & Body Works Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 6th. Stockholders of record on Friday, February 20th were issued a $0.20 dividend. The ex-dividend date was Friday, February 20th. This represents a $0.80 annualized dividend and a dividend yield of 3.8%. Bath & Body Works’s dividend payout ratio is currently 25.40%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its stake in Bath & Body Works by 92.8% in the 1st quarter. Royal Bank of Canada now owns 59,877 shares of the company’s stock valued at $1,815,000 after buying an additional 28,815 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Bath & Body Works by 15.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 645,970 shares of the company’s stock worth $19,586,000 after buying an additional 87,529 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Bath & Body Works by 7.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 562,757 shares of the company’s stock valued at $17,063,000 after acquiring an additional 36,684 shares in the last quarter. Intech Investment Management LLC bought a new position in shares of Bath & Body Works in the first quarter valued at approximately $1,155,000. Finally, Geneos Wealth Management Inc. increased its position in shares of Bath & Body Works by 217.7% during the first quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock valued at $35,000 after acquiring an additional 801 shares during the last quarter. 95.14% of the stock is currently owned by hedge funds and other institutional investors.

Bath & Body Works Company Profile

Bath & Body Works, Inc is a leading specialty retailer focused on personal care, home fragrance and complementary products. Through its flagship Bath & Body Works brand, the company offers a diverse assortment of shower gels, lotions, fragrance mists, candles and home fragrance items. Its product portfolio also includes the White Barn Candle Co range of premium scented candles and diffusers. Bath & Body Works serves consumers through a combination of brick-and-mortar stores and e-commerce platforms, delivering seasonal collections, limited-edition releases and signature scent lines.

Founded in 1990 as part of Limited Brands (now L Brands), Bath & Body Works opened its first store in New Albany, Ohio, and quickly expanded across the United States.