Victoria’s Secret & Co. (NYSE:VSCO) Shares Down 5.4% After Analyst Downgrade

Posted by on Jun 6th, 2023

Victoria’s Secret & Co. (NYSE:VSCO – Get Rating) dropped 5.4% on Monday after Morgan Stanley lowered their price target on the stock from $44.00 to $19.00. The company traded as low as $18.91 and last traded at $19.05. Approximately 614,274 shares were traded during mid-day trading, a decline of 63% from the average daily volume of 1,668,884 shares. The stock had previously closed at $20.14.

A number of other research firms have also weighed in on VSCO. JPMorgan Chase & Co. decreased their target price on shares of Victoria’s Secret & Co. from $36.00 to $32.00 in a research note on Monday, May 8th. Jefferies Financial Group decreased their price objective on shares of Victoria’s Secret & Co. from $50.00 to $39.00 in a report on Tuesday, May 9th. TheStreet downgraded Victoria’s Secret & Co. from a “c-” rating to a “d+” rating in a report on Thursday, May 4th. BMO Capital Markets lowered their price objective on Victoria’s Secret & Co. from $53.00 to $25.00 in a research report on Thursday, June 1st. Finally, Wells Fargo & Company dropped their price objective on shares of Victoria’s Secret & Co. from $55.00 to $34.00 in a research report on Friday. One research analyst has rated the stock with a sell rating and six have issued a hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $34.67.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in VSCO. MetLife Investment Management LLC boosted its stake in Victoria’s Secret & Co. by 19.0% during the 3rd quarter. MetLife Investment Management LLC now owns 55,797 shares of the company’s stock worth $1,625,000 after purchasing an additional 8,899 shares during the period. Victory Capital Management Inc. increased its position in Victoria’s Secret & Co. by 22.4% in the 4th quarter. Victory Capital Management Inc. now owns 1,035,351 shares of the company’s stock valued at $38,913,000 after acquiring an additional 189,303 shares during the period. Mutual of America Capital Management LLC lifted its position in Victoria’s Secret & Co. by 17.0% during the 3rd quarter. Mutual of America Capital Management LLC now owns 66,558 shares of the company’s stock worth $1,938,000 after acquiring an additional 9,686 shares during the period. Primecap Management Co. CA grew its stake in shares of Victoria’s Secret & Co. by 18.8% in the 3rd quarter. Primecap Management Co. CA now owns 2,671,528 shares of the company’s stock valued at $77,795,000 after purchasing an additional 423,260 shares during the last quarter. Finally, Fox Run Management L.L.C. increased its holdings in shares of Victoria’s Secret & Co. by 114.9% in the fourth quarter. Fox Run Management L.L.C. now owns 15,626 shares of the company’s stock valued at $559,000 after purchasing an additional 8,356 shares during the period. Hedge funds and other institutional investors own 87.62% of the company’s stock.

Victoria’s Secret & Co. Stock Performance

The company has a market cap of $1.44 billion, a PE ratio of 5.74, a P/E/G ratio of 0.53 and a beta of 2.01. The company has a debt-to-equity ratio of 3.17, a quick ratio of 0.43 and a current ratio of 1.10. The stock’s 50-day simple moving average is $28.44 and its 200 day simple moving average is $35.31.

Victoria’s Secret & Co. (NYSE:VSCO – Get Rating) last posted its quarterly earnings results on Thursday, June 1st. The company reported $0.28 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.26). Victoria’s Secret & Co. had a return on equity of 111.04% and a net margin of 4.28%. The firm had revenue of $1.41 billion for the quarter, compared to analysts’ expectations of $1.42 billion. During the same period in the prior year, the company earned $1.11 earnings per share. As a group, equities analysts anticipate that Victoria’s Secret & Co. will post 4.05 EPS for the current year.

Victoria’s Secret & Co. Company Profile

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Victoria's Secret & Co operates as a specialty retailer of women's intimate, personal care, and beauty products worldwide. The company offers bras, panties, lingerie, sleepwear, loungewear, and athletic attire and swimwear, as well as fragrances and body care products, and accessories under the Victoria's Secret and PINK brands.

Further Reading

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