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

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Bed Bath & Beyond (NASDAQ:BBBY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.

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.”

Several other research firms have also recently commented on BBBY. BidaskClub cut Bed Bath & Beyond from a “hold” rating to a “sell” rating in a research report on Saturday, August 4th. Standpoint Research cut Bed Bath & Beyond from a “buy” rating to a “hold” rating in a research report on Tuesday, August 14th. Wells Fargo & Co restated a “sell” rating and set a $16.00 target price on shares of Bed Bath & Beyond in a research report on Wednesday, June 27th. Finally, Credit Suisse Group set a $20.00 price objective on Bed Bath & Beyond and gave the stock a “hold” rating in a report on Friday, June 29th. Ten analysts have rated the stock with a sell rating, nine have assigned a hold rating and one has given a strong buy rating to the stock. Bed Bath & Beyond presently has an average rating of “Hold” and a consensus price target of $20.00.

Bed Bath & Beyond stock opened at $17.94 on Tuesday. Bed Bath & Beyond has a 52 week low of $16.52 and a 52 week high of $29.63. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.86 and a quick ratio of 0.62. The stock has a market cap of $2.66 billion, a P/E ratio of 5.78 and a beta of 0.96.

Bed Bath & Beyond (NASDAQ:BBBY) last posted its earnings results on Wednesday, June 27th. The retailer reported $0.33 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.31 by $0.02. Bed Bath & Beyond had a return on equity of 14.73% and a net margin of 3.18%. The business had revenue of $2.75 billion during the quarter, compared to analysts’ expectations of $2.75 billion. During the same period in the previous year, the business earned $0.58 earnings per share. The firm’s revenue was up .4% on a year-over-year basis. equities research analysts predict that Bed Bath & Beyond will post 2.33 earnings per share for the current fiscal year.

In other news, insider Eugene A. Castagna sold 25,000 shares of the company’s stock in a transaction dated Thursday, July 5th. The stock was sold at an average price of $20.81, for a total value of $520,250.00. Following the completion of the transaction, the insider now directly owns 124,255 shares in the company, valued at approximately $2,585,746.55. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 5.50% of the stock is currently owned by corporate insiders.

Several institutional investors and hedge funds have recently bought and sold shares of the company. Point72 Asia Hong Kong Ltd purchased a new stake in Bed Bath & Beyond during the 1st quarter valued at about $109,000. Signaturefd LLC boosted its holdings in Bed Bath & Beyond by 124.8% during the 2nd quarter. Signaturefd LLC now owns 5,930 shares of the retailer’s stock valued at $118,000 after acquiring an additional 3,292 shares during the period. Trilogy Capital Inc. purchased a new stake in Bed Bath & Beyond during the 1st quarter valued at about $127,000. Asset Management One Co. Ltd. boosted its holdings in Bed Bath & Beyond by 143.9% during the 1st quarter. Asset Management One Co. Ltd. now owns 8,440 shares of the retailer’s stock valued at $177,000 after acquiring an additional 4,980 shares during the period. Finally, Psagot Investment House Ltd. purchased a new stake in Bed Bath & Beyond during the 1st quarter valued at about $194,000. Hedge funds and other institutional investors own 93.39% 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.

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