Victoria’s Secret & Co. (NYSE:VSCO) Shares Gap Up – Still a Buy?

Victoria’s Secret & Co. (NYSE:VSCO)’s share price gapped up before the market opened on Friday . The stock had previously closed at $38.33, but opened at $39.75. Victoria’s Secret & Co. shares last traded at $38.94, with a volume of 403,532 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on VSCO shares. UBS Group raised shares of Victoria’s Secret & Co. from a “sell” rating to a “neutral” rating and lifted their price target for the company from $18.00 to $47.00 in a research note on Tuesday, December 10th. Jefferies Financial Group upped their target price on Victoria’s Secret & Co. from $30.00 to $40.00 and gave the company a “buy” rating in a research report on Tuesday, November 12th. Telsey Advisory Group reiterated a “market perform” rating and issued a $40.00 price target on shares of Victoria’s Secret & Co. in a research note on Friday, December 6th. JPMorgan Chase & Co. upgraded shares of Victoria’s Secret & Co. from an “underweight” rating to a “neutral” rating and increased their price target for the stock from $29.00 to $45.00 in a research report on Monday, December 9th. Finally, Morgan Stanley reduced their price target on shares of Victoria’s Secret & Co. from $44.00 to $40.00 and set an “equal weight” rating on the stock in a research note on Tuesday. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and two have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $37.55.

Victoria’s Secret & Co. Stock Performance

The company’s fifty day moving average price is $40.56 and its 200 day moving average price is $29.90. The company has a debt-to-equity ratio of 3.12, a current ratio of 1.17 and a quick ratio of 0.33. The company has a market cap of $2.99 billion, a PE ratio of 19.69, a P/E/G ratio of 2.28 and a beta of 2.14.

Victoria’s Secret & Co. (NYSE:VSCO) last posted its quarterly earnings results on Thursday, December 5th. The company reported ($0.50) earnings per share for the quarter, topping the consensus estimate of ($0.62) by $0.12. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.29 billion. Victoria’s Secret & Co. had a return on equity of 44.74% and a net margin of 2.47%. The firm’s quarterly revenue was up 6.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.86) EPS. On average, equities research analysts predict that Victoria’s Secret & Co. will post 2.31 earnings per share for the current year.

Hedge Funds Weigh In On Victoria’s Secret & Co.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Virtus Fund Advisers LLC purchased a new position in shares of Victoria’s Secret & Co. during the third quarter worth about $27,000. Blue Trust Inc. lifted its holdings in shares of Victoria’s Secret & Co. by 741.4% during the 3rd quarter. Blue Trust Inc. now owns 1,708 shares of the company’s stock worth $44,000 after acquiring an additional 1,505 shares during the last quarter. Point72 Asia Singapore Pte. Ltd. bought a new position in Victoria’s Secret & Co. in the second quarter valued at $50,000. Quarry LP increased its stake in 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 acquiring an additional 1,764 shares during the last quarter. Finally, GAMMA Investing LLC raised its position in Victoria’s Secret & Co. by 109.5% during 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. 90.29% of the stock is currently owned by hedge funds and other institutional investors.

About Victoria’s Secret & Co.

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.