Investors Buy L Brands, Inc. (LB) on Weakness

Traders bought shares of L Brands, Inc. (NYSE:LB) on weakness during trading hours on Thursday. $75.57 million flowed into the stock on the tick-up and $69.99 million flowed out of the stock on the tick-down, for a money net flow of $5.58 million into the stock. Of all equities tracked, L Brands had the 29th highest net in-flow for the day. L Brands traded down ($0.14) for the day and closed at $49.12

A number of equities research analysts recently weighed in on LB shares. Jefferies Group LLC set a $30.00 price target on L Brands and gave the company a “sell” rating in a research note on Monday, August 28th. FBR & Co restated an “outperform” rating and issued a $60.00 price target on shares of L Brands in a research note on Thursday, July 27th. Sanford C. Bernstein started coverage on L Brands in a research note on Tuesday, September 12th. They issued an “outperform” rating and a $57.00 price target on the stock. Robert W. Baird restated a “hold” rating and issued a $44.00 price target on shares of L Brands in a research note on Friday, September 1st. Finally, Wells Fargo & Company reiterated a “market perform” rating and set a $40.00 price objective (down previously from $45.00) on shares of L Brands in a research report on Wednesday, September 13th. Six investment analysts have rated the stock with a sell rating, nineteen have given a hold rating and eleven have assigned a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $48.11.

The company has a debt-to-equity ratio of -6.25, a current ratio of 1.68 and a quick ratio of 1.05. The firm has a market capitalization of $13,940.00, a PE ratio of 15.11, a PEG ratio of 1.38 and a beta of 0.68.

L Brands (NYSE:LB) last issued its quarterly earnings data on Wednesday, November 15th. The specialty retailer reported $0.30 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.30. L Brands had a negative return on equity of 103.18% and a net margin of 8.04%. The company had revenue of $2.62 billion during the quarter, compared to the consensus estimate of $2.57 billion. During the same period last year, the company earned $0.42 earnings per share. The firm’s revenue was up 1.4% compared to the same quarter last year. equities research analysts predict that L Brands, Inc. will post 3.11 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 8th. Stockholders of record on Friday, November 24th will be given a dividend of $0.60 per share. The ex-dividend date of this dividend is Wednesday, November 22nd. This represents a $2.40 dividend on an annualized basis and a dividend yield of 4.75%. L Brands’s dividend payout ratio (DPR) is 73.17%.

L Brands declared that its Board of Directors has initiated a share buyback program on Monday, September 18th that authorizes the company to buyback $250.00 million in shares. This buyback authorization authorizes the specialty retailer to purchase up to 2.2% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

In related news, Director Allan R. Tessler acquired 20,000 shares of the stock in a transaction dated Thursday, September 21st. The stock was bought at an average cost of $37.00 per share, for a total transaction of $740,000.00. Following the completion of the transaction, the director now directly owns 43,342 shares of the company’s stock, valued at $1,603,654. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 16.68% of the stock is owned by company insiders.

A number of hedge funds have recently modified their holdings of LB. Dimensional Fund Advisors LP increased its holdings in L Brands by 1.4% in the first quarter. Dimensional Fund Advisors LP now owns 476,306 shares of the specialty retailer’s stock worth $22,435,000 after purchasing an additional 6,806 shares in the last quarter. AQR Capital Management LLC increased its holdings in L Brands by 21.6% in the first quarter. AQR Capital Management LLC now owns 36,352 shares of the specialty retailer’s stock worth $1,712,000 after purchasing an additional 6,449 shares in the last quarter. State of Alaska Department of Revenue increased its holdings in L Brands by 9.6% in the second quarter. State of Alaska Department of Revenue now owns 5,000 shares of the specialty retailer’s stock worth $269,000 after purchasing an additional 440 shares in the last quarter. LS Investment Advisors LLC increased its holdings in L Brands by 6.3% in the second quarter. LS Investment Advisors LLC now owns 8,662 shares of the specialty retailer’s stock worth $467,000 after purchasing an additional 515 shares in the last quarter. Finally, Nisa Investment Advisors LLC increased its holdings in L Brands by 64.8% in the second quarter. Nisa Investment Advisors LLC now owns 89,665 shares of the specialty retailer’s stock worth $4,759,000 after purchasing an additional 35,250 shares in the last quarter. Institutional investors and hedge funds own 80.71% of the company’s stock.

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About L Brands

L Brands, Inc operates specialty retail business. The Company is focused on women’s intimate and other apparel, personal care, beauty and home fragrance categories. Its segments include Victoria’s Secret, Bath & Body Works, and Victoria’s Secret and Bath & Body Works International. It sells its merchandise through company-owned specialty retail stores in the United States, Canada, the United Kingdom and Greater China, which are mall-based; through Websites, and through international franchise, license and wholesale partners.

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