L Brands (LB) Bond Prices Fall 1.2% Analyst

An issue of L Brands (NYSE:LB) bonds fell 1.2% against their face value during trading on Monday after MKM Partners lowered their price target on the stock to $38.00. The high-yield issue of debt has a 6.75% coupon and is set to mature on July 1, 2036. The debt is now trading at $92.76. Price changes in a company’s bonds in credit markets sometimes predict parallel changes in its share price.

Several other brokerages have also recently weighed in on LB. Barclays raised their target price on shares of L Brands from $44.00 to $49.00 and gave the company an “equal weight” rating in a report on Thursday, January 25th. Telsey Advisory Group cut shares of L Brands from an “outperform” rating to a “market perform” rating and reduced their target price for the company from $70.00 to $52.00 in a report on Thursday, March 1st. Scotiabank reaffirmed a “hold” rating and issued a $59.00 target price on shares of L Brands in a report on Wednesday, January 17th. Deutsche Bank reduced their target price on shares of L Brands from $67.00 to $65.00 and set a “buy” rating on the stock in a report on Monday, February 26th. Finally, Wolfe Research raised their target price on shares of L Brands from $48.00 to $53.00 and gave the company a “peer perform” rating in a report on Monday, February 12th. Eight investment analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and eleven have assigned a buy rating to the company’s stock. L Brands presently has a consensus rating of “Hold” and an average price target of $46.47.

In other news, CFO Stuart B. Burgdoerfer sold 17,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 21st. The shares were sold at an average price of $39.56, for a total transaction of $672,520.00. Following the transaction, the chief financial officer now directly owns 52,640 shares in the company, valued at $2,082,438.40. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Stuart B. Burgdoerfer sold 33,000 shares of the firm’s stock in a transaction that occurred on Tuesday, March 13th. The stock was sold at an average price of $42.53, for a total transaction of $1,403,490.00. Following the transaction, the chief financial officer now owns 69,640 shares in the company, valued at $2,961,789.20. The disclosure for this sale can be found here. 17.32% of the stock is currently owned by company insiders.



Several institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. grew its position in shares of L Brands by 10.7% during the first quarter. BlackRock Inc. now owns 21,861,287 shares of the specialty retailer’s stock worth $835,321,000 after acquiring an additional 2,107,414 shares during the last quarter. American International Group Inc. grew its position in L Brands by 74.8% in the 4th quarter. American International Group Inc. now owns 10,436,938 shares of the specialty retailer’s stock valued at $628,512,000 after buying an additional 4,466,237 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in L Brands by 821.6% in the 1st quarter. The Manufacturers Life Insurance Company now owns 2,707,103 shares of the specialty retailer’s stock valued at $103,438,000 after buying an additional 2,413,375 shares during the last quarter. Bank of New York Mellon Corp grew its position in L Brands by 1.5% in the 4th quarter. Bank of New York Mellon Corp now owns 2,638,420 shares of the specialty retailer’s stock valued at $158,886,000 after buying an additional 40,263 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in L Brands by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 2,618,820 shares of the specialty retailer’s stock valued at $157,378,000 after buying an additional 68,751 shares during the last quarter. Institutional investors and hedge funds own 81.88% of the company’s stock.

The company has a debt-to-equity ratio of -7.60, a quick ratio of 1.01 and a current ratio of 1.62. The stock has a market cap of $9.13 billion, a price-to-earnings ratio of 10.41, a price-to-earnings-growth ratio of 0.90 and a beta of 0.77.

L Brands (NYSE:LB) last posted its quarterly earnings data on Wednesday, February 28th. The specialty retailer reported $2.11 earnings per share for the quarter, beating analysts’ consensus estimates of $2.05 by $0.06. L Brands had a net margin of 7.78% and a negative return on equity of 101.69%. The firm had revenue of $4.82 billion for the quarter, compared to analyst estimates of $4.72 billion. During the same period last year, the firm posted $2.03 EPS. L Brands’s quarterly revenue was up 7.4% on a year-over-year basis. analysts expect that L Brands will post 3.11 EPS for the current year.

L Brands declared that its board has authorized a share repurchase plan on Thursday, March 8th that permits the company to repurchase $226.90 million in outstanding shares. This repurchase authorization permits the specialty retailer to repurchase shares of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

L Brands Company Profile

L Brands, Inc operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, home fragrance products, and accessories. The company operates in three segments: Victoria's Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International.

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