Victoria’s Secret & Co. (NYSE:VSCO) Shares Gap Up Following Better-Than-Expected Earnings

Victoria’s Secret & Co. (NYSE:VSCO) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $43.02, but opened at $45.83. Victoria’s Secret & Co. shares last traded at $47.30, with a volume of 878,749 shares trading hands.

The company reported ($0.50) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.62) by $0.12. Victoria’s Secret & Co. had a net margin of 2.25% and a return on equity of 44.06%. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same period in the prior year, the company posted ($0.86) EPS. The company’s revenue for the quarter was up 6.5% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the company. Barclays raised Victoria’s Secret & Co. from an “underweight” rating to an “equal weight” rating and upped their target price for the stock from $23.00 to $25.00 in a research note on Wednesday, September 18th. The Goldman Sachs Group upped their price objective on shares of Victoria’s Secret & Co. from $17.00 to $19.00 and gave the stock a “sell” rating in a research report on Friday, August 30th. Morgan Stanley lifted their target price on shares of Victoria’s Secret & Co. from $23.00 to $31.00 and gave the company an “equal weight” rating in a research report on Thursday. BMO Capital Markets upped their price target on shares of Victoria’s Secret & Co. from $33.00 to $46.00 and gave the stock an “outperform” rating in a research report on Friday. Finally, TD Cowen lifted their price objective on Victoria’s Secret & Co. from $20.00 to $26.00 and gave the stock a “hold” rating in a report on Friday, August 30th. Four investment analysts have rated the stock with a sell rating, four have given a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $28.64.

Institutional Investors Weigh In On Victoria’s Secret & Co.

Institutional investors and hedge funds have recently modified their holdings of the company. Virtus Fund Advisers LLC purchased a new position in Victoria’s Secret & Co. during the 3rd quarter valued at about $27,000. Blue Trust Inc. lifted its position in shares of Victoria’s Secret & Co. by 741.4% during the third quarter. Blue Trust Inc. now owns 1,708 shares of the company’s stock worth $44,000 after purchasing an additional 1,505 shares in the last quarter. Point72 Asia Singapore Pte. Ltd. acquired a new stake in shares of Victoria’s Secret & Co. during the second quarter worth about $50,000. Quarry LP boosted its stake in shares of Victoria’s Secret & Co. by 126.6% in the second quarter. Quarry LP now owns 3,157 shares of the company’s stock valued at $56,000 after purchasing an additional 1,764 shares during the period. Finally, GAMMA Investing LLC grew its holdings in shares of Victoria’s Secret & Co. by 109.5% in the third quarter. GAMMA Investing LLC now owns 3,160 shares of the company’s stock valued at $81,000 after purchasing an additional 1,652 shares in the last quarter. Hedge funds and other institutional investors own 90.29% of the company’s stock.

Victoria’s Secret & Co. Stock Performance

The stock has a market capitalization of $3.77 billion, a PE ratio of 24.88 and a beta of 2.19. The company has a debt-to-equity ratio of 2.27, a quick ratio of 0.31 and a current ratio of 1.00. The firm’s 50 day moving average is $32.31 and its two-hundred day moving average is $24.70.

Victoria’s Secret & Co. Company Profile

Victoria's Secret & Co operates as a specialty retailer of women's intimate, and other apparel and beauty products worldwide. It offers bras, panties, lingerie, casual sleepwear, and athleisure and swim, as well as fragrances and body care; and loungewear, knit tops, activewear, and accessories and beauty under the Victoria's Secret, PINK, and Adore Me brands.