On February 7, 2023, Odeon Capital downgraded their outlook for Bed Bath & Beyond from Hold to Sell.

Analyst Price Forecast Suggests 41.04% Downside

As of February 7, 2023, the average one-year price target for Bed Bath & Beyond is $1.77. The forecasts range from a low of $0.10 to a high of $4.20. The average price target represents a decrease of 41.04% from its latest reported closing price of $3.01.

The projected annual revenue for Bed Bath & Beyond is $6,118MM, a decrease of 1.50%. The projected annual EPS is $-9.17.

Bed Bath & Beyond Declares $0.17 Dividend

Bed Bath & Beyond said on January 8, 2020 that its board of directors declared a regular quarterly dividend of $0.17 per share ($0.68 annualized). Shareholders of record as of March 12, 2020 received the payment on April 14, 2020. Previously, the company paid $0.17 per share.

At the current share price of $3.01 / share, the stock’s dividend yield is 22.59%. Looking back five years and taking a sample every week, the average dividend yield has been 5.09%, the lowest has been 2.65%, and the highest has been 16.19%. The standard deviation of yields is 2.47 (n=105).

The current dividend yield is 7.10 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.00. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is -1.00%.

What are large shareholders doing?

IJR – iShares Core S&P Small-Cap ETF holds 5,066,015 shares representing 4.34% ownership of the company. In it’s prior filing, the firm reported owning 5,551,378 shares, representing a decrease of 9.58%. The firm increased its portfolio allocation in BBBY by 13.49% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 2,284,905 shares representing 1.96% ownership of the company. In it’s prior filing, the firm reported owning 1,884,415 shares, representing an increase of 17.53%. The firm increased its portfolio allocation in BBBY by 54.87% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 1,929,089 shares representing 1.65% ownership of the company. In it’s prior filing, the firm reported owning 1,611,788 shares, representing an increase of 16.45%. The firm increased its portfolio allocation in BBBY by 52.93% over the last quarter.

Allianz Asset Management holds 1,752,727 shares representing 1.50% ownership of the company. In it’s prior filing, the firm reported owning 1,786,530 shares, representing a decrease of 1.93%. The firm increased its portfolio allocation in BBBY by 157.55% over the last quarter.

IWM – iShares Russell 2000 ETF holds 1,738,028 shares representing 1.49% ownership of the company. In it’s prior filing, the firm reported owning 1,829,062 shares, representing a decrease of 5.24%. The firm increased its portfolio allocation in BBBY by 26.10% over the last quarter.

Fund Sentiment

There are 443 funds or institutions reporting positions in Bed Bath & Beyond. This is a decrease of 48 owner(s) or 9.78%.

Average portfolio weight of all funds dedicated to US:BBBY is 0.0355%, a decrease of 28.8881%. Total shares owned by institutions decreased in the last three months by 26.31% to 51,855K shares.

Bed, Bath & Beyond Background Information
(This description is provided by the company.)

Bed Bath & Beyond Inc. and subsidiaries (the ‘Company’) is an omnichannel retailer that makes it easy for its customers to feel at home. The Company sells a wide assortment of merchandise in the Home, Baby, Beauty and Wellness markets. Additionally, the Company is a partner in a joint venture which operates retail stores in Mexico under the name Bed Bath & Beyond.

This article originally appeared on Fintel

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