Market Analysts see L Brands Inc. [LB] gaining to $40. Time to buy?

L Brands Inc. [NYSE: LB] gained 2.14% or 0.69 points to close at $32.99 with a heavy trading volume of 3256304 shares. The company report on September 30, 2020 that L Brands Announces Updated Results of its Cash Tender Offers and Amendment of Early Tender Time.

L Brands, Inc. (NYSE: LB) announced today the results to date of its tender offers (the “Tender Offers”) to purchase for cash its outstanding (i) 5.625% Senior Notes due 2022 (the “2022 Notes”), (ii) 5.625% Senior Notes due 2023 (the “2023 Notes”), (iii) 7.60% Notes due 2037 (the “2037 Notes”) and (iv) 6.95% Exchange Debentures due 2033 (the “2033 Notes” and, together with the 2022 Notes, the 2023 Notes and the 2037 Notes, the “Notes”) up to an aggregate principal amount that will not result in a maximum aggregate purchase price (excluding accrued and unpaid interest) that exceeds $1 billion (the “Maximum Aggregate Purchase Price”), subject to the sub-cap, the order of priority and proration provisions set forth in the Offer to Purchase described below. Capitalized terms used but not defined herein have the meanings ascribed thereto in the Offer to Purchase.

According to Global Bondholder Services Corporation, the depositary and information agent for the Tender Offers, as of 5:00 p.m., New York City time, on September 29, 2020, tenders had been received from holders in the amounts listed in the table below.

It opened the trading session at $33.01, the shares rose to $33.39 and dropped to $32.58, the range by which the price of stock traded the whole day. The daily chart for LB points out that the company has recorded 126.27% gains over the past six months. However, it is still -312.38% lower than its most recent low trading price.

If we look at the average trading volume of 5.83M shares, LB reached to a volume of 3256304 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about L Brands Inc. [LB]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LB shares is $31.17 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LB stock is a recommendation set at 2.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

MKM Partners have made an estimate for L Brands Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 25, 2020. While these analysts kept the previous recommendation, Telsey Advisory Group raised their target price from $23 to $30. The new note on the price target was released on August 21, 2020, representing the official price target for L Brands Inc. stock. Previously, the target price had yet another raise from $15 to $17, while Citigroup kept a Sell rating on LB stock.

The Average True Range (ATR) for L Brands Inc. is set at 1.40, with the Price to Sales ratio for LB stock in the period of the last 12 months amounting to 0.81. Price to Free Cash Flow for LB in the course of the last twelve months was 11.89 with Quick ratio for the last quarter at 0.90.

Trading performance analysis for LB stock

L Brands Inc. [LB] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.71. With this latest performance, LB shares gained by 14.07% in over the last four-week period, additionally plugging by 126.27% over the last 6 months – not to mention a rise of 86.38% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LB stock in for the last two-week period is set at 62.51, with the RSI for the last a single of trading hit 63.92, and the three-weeks RSI is set at 63.42 for L Brands Inc. [LB]. The present Moving Average for the last 50 days of trading for this stock 29.07, while it was recorded at 32.97 for the last single week of trading, and 19.89 for the last 200 days.

L Brands Inc. [LB]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and L Brands Inc. [LB] shares currently have an operating margin of +9.49 and a Gross Margin at +36.38. L Brands Inc.’s Net Margin is presently recorded at -2.83.

Return on Total Capital for LB is now 19.57, given the latest momentum, and Return on Invested Capital for the company is -6.15. Additionally, LB Total Debt to Total Capital is recorded at 119.78, with Total Debt to Total Assets ending up at 89.66.

Reflecting on the efficiency of the workforce at the company, L Brands Inc. [LB] managed to generate an average of -$3,877 per employee. Receivables Turnover for the company is 38.38 with a Total Asset Turnover recorded at a value of 1.42.L Brands Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.30.

L Brands Inc. [LB]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, L Brands Inc. posted 0.02/share EPS, while the average EPS was predicted by analysts to be reported at 0.02/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LB. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for L Brands Inc. go to 7.10%.

An analysis of insider ownership at L Brands Inc. [LB]

There are presently around $7,135 million, or 81.20% of LB stock, in the hands of institutional investors. The top three institutional holders of LB stocks are: MELVIN CAPITAL MANAGEMENT LP with ownership of 27,701,362, which is approximately 113.087% of the company’s market cap and around 0.30% of the total institutional ownership; LONE PINE CAPITAL LLC, holding 26,265,094 shares of the stock with an approximate value of $866.49 million in LB stocks shares; and VANGUARD GROUP INC, currently with $792.05 million in LB stock with ownership of nearly -9.219% of the company’s market capitalization.

Positions in L Brands Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 159 institutional holders increased their position in L Brands Inc. [NYSE:LB] by around 39,679,923 shares. Additionally, 217 investors decreased positions by around 41,085,140 shares, while 49 investors held positions by with 135,512,519 shares. The mentioned changes placed institutional holdings at 216,277,582 shares, according to the latest SEC report filing. LB stock had 61 new institutional investments in for a total of 13,360,351 shares, while 79 institutional investors sold positions of 11,910,095 shares during the same period.

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