L Brands, Inc. (LB) Debt Trading 1.2% Lower

An issue of L Brands, Inc. (NYSE:LB) debt fell 1.2% as a percentage of its face value during trading on Monday. The high-yield debt issue has a 6.75% coupon and will mature on July 1, 2036. The debt is now trading at $96.50 and was trading at $96.00 last week. Price moves in a company’s debt in credit markets often anticipate parallel moves in its stock price.

LB has been the topic of several recent analyst reports. FBR & Co set a $60.00 price target on shares of L Brands and gave the company a “buy” rating in a report on Tuesday, June 27th. Oppenheimer Holdings, Inc. reiterated a “buy” rating on shares of L Brands in a report on Tuesday, June 20th. Cowen and Company reiterated a “buy” rating and issued a $56.00 price target on shares of L Brands in a report on Tuesday, July 4th. Deutsche Bank AG reiterated a “buy” rating and issued a $60.00 price target on shares of L Brands in a report on Tuesday, August 1st. Finally, Buckingham Research lowered their price objective on L Brands from $62.00 to $52.00 and set a “buy” rating for the company in a research report on Friday, August 4th. Seven analysts have rated the stock with a sell rating, eighteen have given a hold rating and ten have issued a buy rating to the company. L Brands has an average rating of “Hold” and a consensus price target of $46.74.

L Brands, Inc. (NYSE:LB) traded down 4.66% on Wednesday, reaching $37.40. The company had a trading volume of 2,312,997 shares. L Brands, Inc. has a 1-year low of $35.00 and a 1-year high of $75.94. The stock’s 50 day moving average is $39.15 and its 200-day moving average is $46.90. The stock has a market capitalization of $10.62 billion, a P/E ratio of 10.98 and a beta of 0.65.

L Brands (NYSE:LB) last issued its quarterly earnings data on Wednesday, August 16th. The specialty retailer reported $0.48 EPS for the quarter, beating the consensus estimate of $0.45 by $0.03. L Brands had a negative return on equity of 103.18% and a net margin of 8.04%. The company had revenue of $2.76 billion for the quarter, compared to analyst estimates of $2.75 billion. During the same period last year, the company earned $0.70 earnings per share. L Brands’s quarterly revenue was down 4.7% compared to the same quarter last year. On average, equities analysts predict that L Brands, Inc. will post $3.14 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 1st. Shareholders of record on Friday, August 18th were issued a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 6.12%. The ex-dividend date was Wednesday, August 16th. L Brands’s payout ratio is currently 70.38%.

L Brands announced that its Board of Directors has approved a stock repurchase plan on Monday, September 18th that allows the company to repurchase $250.00 million in outstanding shares. This repurchase authorization allows the specialty retailer to repurchase up to 2.2% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Institutional investors and hedge funds have recently modified their holdings of the business. First Personal Financial Services grew its holdings in L Brands by 127.7% in the second quarter. First Personal Financial Services now owns 1,954 shares of the specialty retailer’s stock valued at $105,000 after purchasing an additional 1,096 shares during the period. FNY Partners Fund LP acquired a new stake in L Brands in the first quarter valued at approximately $129,000. Meag Munich Ergo Kapitalanlagegesellschaft MBH acquired a new stake in L Brands in the first quarter valued at approximately $142,000. Investors Asset Management of Georgia Inc. GA ADV grew its holdings in L Brands by 11.2% in the second quarter. Investors Asset Management of Georgia Inc. GA ADV now owns 3,719 shares of the specialty retailer’s stock valued at $200,000 after purchasing an additional 375 shares during the period. Finally, Summit Financial Strategies Inc. acquired a new stake in L Brands in the second quarter valued at approximately $214,000. 79.48% of the stock is currently owned by institutional investors.

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About L Brands

L Brands, Inc operates specialty retail business. The Company is focused on women’s intimate and other apparel, personal care, beauty and home fragrance categories. Its segments include Victoria’s Secret, Bath & Body Works, and Victoria’s Secret and Bath & Body Works International. It sells its merchandise through company-owned specialty retail stores in the United States, Canada, the United Kingdom and Greater China, which are mall-based; through Websites, and through international franchise, license and wholesale partners.

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