Barclays Downgrades Bath & Body Works to Underweight

In a recent report, Barclays has downgraded Bath & Body Works' outlook from Equal-Weight to Underweight. This shift may indicate growing concerns over the company’s future performance, as evidenced by fluctuating institutional ownership.

Date: 10-11-2024

AI Rating: 4

The downgrade by Barclays could lead to negative sentiment surrounding Bath & Body Works (BBWI), as it reflects a lack of confidence in the company's performance moving forward. The analyst downgrade from Equal-Weight to Underweight means that Barclays expects the stock to underperform compared to others in the market.

The report mentions that there are currently 1,074 funds or institutions reporting positions in Bath & Body Works, with a rise in institutional ownership by 4.12% over the last three months, amounting to 240,193K shares. This can be seen as a positive sign. However, despite the overall increase in institutional ownership, significant shifts in individual holdings illustrate a more nuanced picture:

Third Point decreased their holdings by 7.31%, reducing their portfolio allocation in BBWI by 34.66%.
Lone Pine Capital saw an increase in shares by 13.68%, but also reduced their overall portfolio allocation by 7.05%.
T. Rowe Price Investment Management decreased their holdings by 20.19%, with a huge cut in their portfolio allocation by 33.00%.
JPMorgan Chase increased ownership by 14.98%, but notably decreased their portfolio allocation by 93.99%.
Price T Rowe Associates had a slight decrease of 0.36% in shares, reflecting a 24.06% reduction in their portfolio allocation.

This mixed pattern of ownership can cause volatility in stock price as investors react to the perceived stability or instability within the company. A downgrade from a reputable institution like Barclays could influence more investors to move away from Bath & Body Works, contributing to potential price declines in the future.

Stocks: BBWI