L Brands Inc. [NYSE: LB] jumped around 1.72 points on Thursday, while shares priced at $33.90 at the close of the session, up 5.34%. The company report on October 15, 2020 that L Brands Announces the Expiration and Final Results of its Cash Tender Offers and Consent Solicitations for Certain of its Senior Notes.
L Brands, Inc. (NYSE: LB) announced today the expiration and final results 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. The Tender Offers and Consent Solicitations (as defined below) provide for settlement of all Notes that were validly tendered by 11:59 p.m., New York City time on October 14, 2020 (the “Expiration Date”). 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 the Expiration Date, tenders had been received from holders in the amounts listed in the table below.
L Brands Inc. stock is now 87.09% up from its year-to-date (YTD) trading value. LB Stock saw the intraday high of $34.115 and lowest of $31.83 per share. The company’s 52-week high price is 35.41, which means current price is +323.75% above from all time high which was touched on 10/19/20.
Compared to the average trading volume of 5.77M shares, LB reached a trading volume of 3834952 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say 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 $31.54 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.
B. Riley Securities have made an estimate for L Brands Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 14, 2020. The new note on the price target was released on August 25, 2020, representing the official price target for L Brands Inc. stock. Previously, the target price had yet another raise from $23 to $30, while Telsey Advisory Group kept a Market Perform rating on LB stock. On July 30, 2020, analysts increased their price target for LB shares from 15 to 17.
The Average True Range (ATR) for L Brands Inc. is set at 1.50, with the Price to Sales ratio for LB stock in the period of the last 12 months amounting to 0.84. Price to Free Cash Flow for LB in the course of the last twelve months was 12.30 with Quick ratio for the last quarter at 0.90.
How has LB stock performed recently?
L Brands Inc. [LB] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.86. With this latest performance, LB shares gained by 12.62% in over the last four-week period, additionally plugging by 228.81% over the last 6 months – not to mention a rise of 92.29% 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 60.45, with the RSI for the last a single of trading hit 63.65, and the three-weeks RSI is set at 62.34 for L Brands Inc. [LB]. The present Moving Average for the last 50 days of trading for this stock 30.62, while it was recorded at 33.11 for the last single week of trading, and 20.69 for the last 200 days.
L Brands Inc. [LB]: Deeper insight into the fundamentals
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.
Earnings analysis for L Brands Inc. [LB]
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 3.70%.
Insider trade positions for L Brands Inc. [LB]
There are presently around $7,310 million, or 80.40% 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 $890.39 million in LB stocks shares; and VANGUARD GROUP INC, currently with $813.9 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 161 institutional holders increased their position in L Brands Inc. [NYSE:LB] by around 39,793,131 shares. Additionally, 209 investors decreased positions by around 41,825,950 shares, while 52 investors held positions by with 134,006,182 shares. The mentioned changes placed institutional holdings at 215,625,263 shares, according to the latest SEC report filing. LB stock had 67 new institutional investments in for a total of 13,562,642 shares, while 66 institutional investors sold positions of 11,748,122 shares during the same period.