L Brands, Inc. (NYSE:LB) is now worth $7.37B thanks to -2.32% drop in recent trade and currently has a price tag of $28.2. The shares traded as low as $27.2 and had $29.0999 an intraday high earlier Tuesday. Trading activity significantly improved as the volume at ready counter increased to 5,290,215 shares versus 5,133,810 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 5,430,640 shares. The stock is now 18.94% above against its bear-market low of $23.71 on December 24, 2018. It has retreated -89.33% since it’s 52-week high of $53.39 reached in January. Now the market price is down -44% on the year and up 9.86% YTD.
LB’s 50 day simple moving average (SMA 50) price is $31.26 and its 200-day simple moving average (SMA 200) price is $32.63. The company’s stock currently has a total float of 227.4M shares. Its weekly volatility is hovering around 6.55% and felt 5.55% volatility in price over a month. On the upside, the share price will test short term resistance at around $29.13. On a downside, the stock is likely to find some support, which begins at $27.23. The failure to get near-term support could push it to $26.27.
Separately, it has been reported that multiple insider activity took place at L Brands, Inc. (LB). Director Zimmerman Raymond sold 6,385 shares for $41,073 in transaction occurred on 2018/11/21. After making this transaction, the Director owns a direct stake of 180,887 shares, worth $1,158,259, as per the last closing price. On 2018/07/06 Bersani James L., EVP & President – Real Estate at LB, purchased 5,000 shares at an average price of $36.28 per share. The new stake is valued at $6,184,063.
Director, James Donna had invested in 1,000 shares for $21,738 through a trade on 2018/05/25. Following this activity, the insider holds 35,290 shares worth $613,012 as of recent close. Wall Street’s most bullish L Brands, Inc. (NYSE:LB) analysts are predicting the share price to blow past $50 per share during the next 12 months. The current median share price forecast by them is $35, suggesting that the stock could increase 24.11% in that time frame. The average price target of $35.54 calls for a nearly 26.03% increase in the stock price.
It had seen a change in price target from analysts at Telsey Advisory Group, who reiterated the stock at Market Perform on November 21 but moved PT from $40 to $33. Analysts at Wells Fargo, shed their negative views on November 12 by lifting it fromMarket Perform to Outperform. The stock won favor of KeyBanc Capital Mkts analysts who expressed their confidence in it using an upgrade from Underweight to Sector Weight on November 08. Goldman, released new analyst coverage on October 26, calling the stock is Buy.
When looking at valuations, L Brands, Inc. (LB) has a cheap P/E of 11.82x as compared to industry average of 30.76x. Moreover, it trades for 10.33 times the next 12 months of expected earnings. Compared to others, L Brands, Inc. is in a different league with regards to profitability, having net margins of 5.8%. To put some perspective around this, the industry’s average net margin is 6.42%. LB’s ROE is -73.8%, which is also considerably worse than the industry’s ROE of 17.01%. It’s also very liquid in the near term, with a current ratio of 1.4. The stock has a debt/capital of 0.
Shares of L Brands, Inc. (LB) have dropped -16.4% since the company’s Apr-19 earnings report. Over the past 12 fiscal quarters, L Brands, Inc. (NYSE:LB) has topped consensus earnings estimates in 11 quarters (91%), missed earnings in 0 quarters (0%), whereas at 1 occasion EPS met analyst expectations. LB last reported earnings on November 19, 2018 when it released Jul-18 results that exceeded expectations. The company raked in $0.36 per share, -93.08% change on the same period last year. That was better than consensus for $0.34. Revenue for the recent quarter stood at $2.77 billion, up 6% on last year and above the $2.71 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.57 billion to $2.76 billion, which should be compared with $2.6 billion generated last year. EPS is seen in a range of $0.09 to $0.21, against the $0.37 reported a year ago.