L Brands, Inc. (LB): Ideal Stock To Have In A Portfolio

Analysts at Telsey Advisory Group lifted target price for shares of L Brands, Inc. (NYSE:LB) but repeated their Market Perform recommendation for the stock in their opinion released on January 11. The price target has been raised from $33 to $31. Telsey Advisory Group analysts again handed out a Market Perform rating to LB stock but they lifted target price for the shares in a flash note to investors on November 21. The price target has been raised from $40 to $33. Telsey Advisory Group, analysts launched coverage of LB stock with a Market Perform rating, according to their flash note to investors on November 21. Analysts at Wells Fargo issued an upgrade from Market Perform to Outperform for the stock, in a research note that dated back to November 12.

By watching the trading activity of corporate insiders, it will become easier to get a sense of L Brands, Inc. (NYSE:LB)’s prospects. The earliest insider trade took place on 11/21/2018. Zimmerman Raymond parted with a total of 6.39 thousand shares of company at average share price of $28.33. The total for the sales was set at $180.89 thousand. After this transaction, the Director account balance stood at 41.07 thousand shares. The stock lost -6.6 percent since that insider sale. On 07/06/2018, Bersani James L., EVP & President – Real Estate, purchased 5 thousand shares at a price per share of $36.28. This added 181.4 thousand shares to the insider’s fortune and the stock saw a -27.07 percent retreat in value since the news became public. This transaction left 219.29 thousand shares in the EVP & President – Real Estate account. On 05/25/2018, Director James Donna performed a purchase transaction worth $35.29 thousand. This purchase at $35.29 each has added 1 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -25.02 percent decrease since the transaction was reported. The insider now is left with 21.74 thousand shares remaining in the account. James Donna, who performs the Director job, sold 1 thousand shares for $35.29 thousand. The disposal occurred on 05/25/2018 was priced at $35.29 per share. The share price plunged -25.02 percent since the reporting date. James Donna now left with a stake of 19.74 thousand LB stock worth $522.27 thousand after the insider selling.

L Brands, Inc. (LB) is expected to jump by 30.88 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $45-month high price target. This represents a whopping 70.07 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $34, which represents a return potential of 28.5 percent when compared to the closing price of the stock of $26.46 on Friday, January 11. The lowest price target for the stock is $21 — slightly more than -20.63 percent from LB’s current share price.

The shares are currently floating around the first support level of $26.03. Below this, the next support is placed in the zone of $25.59. Till the time, the LB stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 38.08 on daily chart, which may remain a cause for comfort. If the price breaks below $25.59 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $27.32 mark may result into a pull-back move towards $28.17 level.

LB shares dropped -0.53 points or -1.96 percent on Friday to $26.46 with a light trade volume of 4.386 million shares. After opening the session at $27.12, the shares went as high as $27.74 and as low as $26.45, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $7.43 billion and now has 280.63 million shares outstanding. L Brands, Inc. (LB) stock has lost -16.48 percent of market value in 21 trading days.

LB stock has a trailing 3-year beta of 0.56, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.39 a share in the trailing twelve months. The stock’s value has surged 3.08 percent year to date (YTD) against a decline of -45.25 percent in 12 month’s time. The company’s shares still trade -50.44 percent away from its 1-year high of $53.39 and 11.6 percent up from 52-week low of $23.71. The average consensus rating on the company is 2.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of L Brands, Inc. (LB) are trading at a P/E ratio of 12.63 times earnings reported for the past 12 months. The industry LB operates in has an average P/E of 34.92. Its P/E ratio went as low as 14.83X and as high as 23.09 over the 5-year span. Further, it is sporting a 0.56 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.33. 37.6 percent is the gross profit margin for L Brands, Inc. and operating margin sits at 10.8 percent. Along with this, the net profit margin is 5.8 percent.