L Brands (LB) Bond Prices Fall 1.8%

An issue of L Brands (NYSE:LB) bonds fell 1.8% as a percentage of their face value during trading on Wednesday. The high-yield issue of debt has a 6.875% coupon and is set to mature on November 1, 2035. The bonds in the issue are now trading at $91.38 and were trading at $93.25 one week ago. Price moves in a company’s bonds in credit markets often anticipate parallel moves in its share price.

Several research analysts recently commented on the company. Barclays increased their price objective on L Brands from $44.00 to $49.00 and gave the company an “equal weight” rating in a research note on Thursday, January 25th. Northcoast Research raised L Brands from a “neutral” rating to a “buy” rating in a research note on Wednesday, February 7th. Cowen reissued a “hold” rating and issued a $49.00 price objective on shares of L Brands in a research note on Thursday, February 8th. Wolfe Research increased their price objective on L Brands from $48.00 to $53.00 and gave the company a “peer perform” rating in a research note on Monday, February 12th. Finally, Deutsche Bank reduced their price objective on L Brands from $67.00 to $65.00 and set a “buy” rating for the company in a research note on Monday, February 26th. Eight equities research analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and eleven have issued a buy rating to the company. L Brands has a consensus rating of “Hold” and a consensus target price of $46.47.

L Brands stock traded up $0.06 during midday trading on Wednesday, reaching $34.05. 5,561,900 shares of the stock traded hands, compared to its average volume of 4,733,771. L Brands has a 12-month low of $30.70 and a 12-month high of $63.10. The stock has a market capitalization of $9.61 billion, a price-to-earnings ratio of 10.64, a price-to-earnings-growth ratio of 0.99 and a beta of 0.77. The company has a debt-to-equity ratio of -7.60, a current ratio of 1.62 and a quick ratio of 1.01.

L Brands (NYSE:LB) last announced its earnings results on Wednesday, May 23rd. The specialty retailer reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of $0.16 by $0.01. L Brands had a negative return on equity of 101.69% and a net margin of 7.78%. The company had revenue of $2.63 billion during the quarter, compared to analysts’ expectations of $2.59 billion. During the same period last year, the business posted $0.33 EPS. L Brands’s revenue for the quarter was up 7.8% on a year-over-year basis. equities research analysts anticipate that L Brands will post 2.99 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 15th. Stockholders of record on Friday, June 1st will be paid a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 7.05%. The ex-dividend date of this dividend is Thursday, May 31st. L Brands’s payout ratio is presently 75.00%.

L Brands declared that its board has approved a stock repurchase program on Thursday, March 8th that permits the company to buyback $226.90 million in outstanding shares. This buyback authorization permits the specialty retailer to buy shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

In other L Brands news, CFO Stuart B. Burgdoerfer sold 33,000 shares of L Brands 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 of the company’s stock, valued at $2,961,789.20. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Stuart B. Burgdoerfer sold 17,000 shares of L Brands stock in a transaction that occurred on Wednesday, March 21st. The shares were sold at an average price of $39.56, for a total value of $672,520.00. Following the completion of the transaction, the chief financial officer now owns 52,640 shares in the company, valued at $2,082,438.40. The disclosure for this sale can be found here. Insiders own 17.32% of the company’s stock.

Several hedge funds have recently made changes to their positions in the business. BlackRock Inc. grew its stake in shares of L Brands by 10.7% in the 1st quarter. BlackRock Inc. now owns 21,861,287 shares of the specialty retailer’s stock valued at $835,321,000 after purchasing an additional 2,107,414 shares during the last quarter. American International Group Inc. boosted its stake in shares of L Brands by 74.8% in the fourth 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 in the last quarter. The Manufacturers Life Insurance Company boosted its stake in shares of L Brands by 821.6% in the first 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 in the last quarter. Bank of New York Mellon Corp boosted its stake in shares of L Brands by 1.5% in the fourth 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 in the last quarter. Finally, Geode Capital Management LLC boosted its stake in shares of L Brands by 2.7% in the fourth 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 in the last quarter. Institutional investors own 75.29% of the company’s stock.

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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