Bed Bath & Beyond Inc. (NASDAQ:BBBY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday.

According to Zacks, “Bed Bath & Beyond has underperformed the broader industry in the last one year. The company has been reeling under sluggish mall traffic, with increasing shift toward online shopping. Also, margins have been pressurized owing to increased costs. Expecting these factors to linger, the company provided a dismal earnings view for fiscal 2017. Apart from this, Bed Bath & Beyond's global presence keeps it exposed to the threat of adverse currency fluctuations. On the positive side, however, the company is focused on strategic initiatives like store expansion, eCommerce enhancement and improvement of customer services. Further, contributions from One King Lane should enable Bed Bath & Beyond to fight competition from e-commerce giants and boost results. Additionally, the company's recent dividend hike underscores its financial strength. Estimates have been stable of late, ahead of the company's first-quarter earnings.”

A number of other research analysts have also recently issued reports on BBBY. ValuEngine cut Bed Bath & Beyond from a “buy” rating to a “hold” rating in a research note on Friday, June 2nd. Loop Capital reaffirmed a “sell” rating and set a $35.00 price objective on shares of Bed Bath & Beyond in a research note on Thursday, March 30th. Citigroup Inc. reduced their price objective on Bed Bath & Beyond from $40.00 to $35.00 and set a “sell” rating on the stock in a research note on Friday, April 7th. Wedbush reduced their price objective on Bed Bath & Beyond from $42.00 to $38.00 and set a “neutral” rating on the stock in a research note on Thursday, April 6th. Finally, Oppenheimer Holdings, Inc. reaffirmed a “hold” rating on shares of Bed Bath & Beyond in a research note on Thursday, April 6th. Seven research analysts have rated the stock with a sell rating, sixteen have given a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the company. The stock presently has an average rating of “Hold” and an average price target of $42.87.

Analyst Recommendations for Bed Bath & Beyond (NASDAQ:BBBY)

Shares of Bed Bath & Beyond (BBBY) traded up 1.85% on Monday, reaching $36.30. The company’s stock had a trading volume of 2,803,987 shares. The firm has a market cap of $5.18 billion, a price-to-earnings ratio of 7.93 and a beta of 1.01. The stock has a 50 day moving average of $36.36 and a 200-day moving average of $40.04. Bed Bath & Beyond has a 12 month low of $33.63 and a 12 month high of $48.83.

Bed Bath & Beyond (NASDAQ:BBBY) last announced its quarterly earnings data on Wednesday, April 5th. The retailer reported $1.84 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.77 by $0.07. Bed Bath & Beyond had a return on equity of 26.26% and a net margin of 5.61%. The firm had revenue of $3.53 billion for the quarter, compared to analysts’ expectations of $3.50 billion. During the same period last year, the firm earned $1.91 earnings per share. The company’s revenue for the quarter was up 3.4% compared to the same quarter last year. On average, analysts anticipate that Bed Bath & Beyond will post $4.31 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 18th. Stockholders of record on Friday, June 16th will be issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 1.68%. This is a positive change from Bed Bath & Beyond’s previous quarterly dividend of $0.13. The ex-dividend date of this dividend is Wednesday, June 14th. Bed Bath & Beyond’s dividend payout ratio (DPR) is presently 10.87%.

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In other news, insider Arthur Stark sold 8,933 shares of Bed Bath & Beyond stock in a transaction that occurred on Friday, April 21st. The shares were sold at an average price of $39.73, for a total transaction of $354,908.09. Following the completion of the transaction, the insider now directly owns 149,595 shares in the company, valued at $5,943,409.35. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Steven H. Temares sold 200,000 shares of Bed Bath & Beyond stock in a transaction that occurred on Friday, April 21st. The shares were sold at an average price of $39.83, for a total transaction of $7,966,000.00. Following the transaction, the chief executive officer now owns 603,515 shares of the company’s stock, valued at $24,038,002.45. The disclosure for this sale can be found here. Insiders have sold 349,706 shares of company stock valued at $13,679,409 over the last quarter. Company insiders own 5.00% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in the stock. Mizuho Asset Management Co. Ltd. raised its position in Bed Bath & Beyond by 103.5% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 2,304 shares of the retailer’s stock valued at $100,000 after buying an additional 1,172 shares during the last quarter. Quantbot Technologies LP acquired a new position in Bed Bath & Beyond during the first quarter valued at about $106,000. Creative Planning raised its position in Bed Bath & Beyond by 1.2% in the second quarter. Creative Planning now owns 2,585 shares of the retailer’s stock valued at $112,000 after buying an additional 30 shares during the last quarter. Cutler Group LP raised its position in Bed Bath & Beyond by 157.6% in the first quarter. Cutler Group LP now owns 2,934 shares of the retailer’s stock valued at $115,000 after buying an additional 8,027 shares during the last quarter. Finally, Acrospire Investment Management LLC acquired a new position in Bed Bath & Beyond during the first quarter valued at about $124,000. Hedge funds and other institutional investors own 92.67% of the company’s stock.

Bed Bath & Beyond Company Profile

Bed Bath & Beyond Inc is a retailer, which operates under the names Bed Bath & Beyond (BBB), Christmas Tree Shops, Christmas Tree Shops andThat! or andThat! (collectively, CTS), Harmon or Harmon Face Values (collectively, Harmon), buybuy BABY (Baby) and World Market, Cost Plus World Market or Cost Plus (collectively, Cost Plus World Market).

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