Stock Buyback Program Declared by L Brands (NYSE:LB) Board

L Brands (NYSE:LB) declared that its Board of Directors has approved a stock buyback program, which allows the company to buyback $226.90 million in shares on Thursday, March 8th. This buyback authorization allows the specialty retailer to reacquire shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.

NYSE LB traded down $1.15 during trading on Monday, hitting $37.06. 4,831,404 shares of the stock traded hands, compared to its average volume of 4,919,205. The stock has a market capitalization of $10,785.35, a PE ratio of 11.58, a P/E/G ratio of 1.05 and a beta of 0.78. The company has a debt-to-equity ratio of -7.60, a current ratio of 1.62 and a quick ratio of 1.01. L Brands has a 12-month low of $35.00 and a 12-month high of $63.10.

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L Brands (NYSE:LB) last announced its earnings results on Wednesday, February 28th. The specialty retailer reported $2.11 EPS for the quarter, topping the Zacks’ consensus estimate of $2.05 by $0.06. The firm had revenue of $4.82 billion during the quarter, compared to analysts’ expectations of $4.72 billion. L Brands had a negative return on equity of 101.69% and a net margin of 7.78%. The company’s quarterly revenue was up 7.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.03 EPS. analysts anticipate that L Brands will post 3.17 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Friday, March 9th. Investors of record on Friday, February 23rd were paid a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 6.48%. The ex-dividend date of this dividend was Thursday, February 22nd. L Brands’s dividend payout ratio is currently 75.00%.

Several brokerages have weighed in on LB. Wolfe Research upped their price target on L Brands from $48.00 to $53.00 and gave the stock a “peer perform” rating in a research note on Monday, February 12th. Telsey Advisory Group increased their target price on L Brands from $60.00 to $64.00 and gave the stock an “outperform” rating in a research note on Monday, December 4th. Scotiabank reissued a “hold” rating and issued a $59.00 target price on shares of L Brands in a research note on Wednesday, January 17th. Cowen reissued a “hold” rating and issued a $49.00 target price on shares of L Brands in a research note on Thursday, February 8th. Finally, MKM Partners set a $56.00 price objective on L Brands and gave the company a “hold” rating in a research report on Friday, January 5th. Seven equities research analysts have rated the stock with a sell rating, eighteen have issued a hold rating and eleven have issued a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $50.24.

In other L Brands news, CFO Stuart B. Burgdoerfer sold 33,000 shares of L Brands stock in a transaction on Tuesday, March 13th. The stock was sold at an average price of $42.53, for a total transaction of $1,403,490.00. Following the completion of the sale, the chief financial officer now directly owns 69,640 shares of the company’s stock, valued at approximately $2,961,789.20. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Stuart B. Burgdoerfer sold 17,000 shares of L Brands stock in a transaction on Wednesday, March 21st. The shares were sold at an average price of $39.56, for a total value of $672,520.00. Following the sale, the chief financial officer now directly owns 52,640 shares of the company’s stock, valued at $2,082,438.40. The disclosure for this sale can be found here. 16.68% of the stock is currently owned by company insiders.

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About L Brands

L Brands, Inc operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. The company operates in three segments: Victoria's Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International. Its products include loungewear, bras, panties, swimwear, athletic attire, fragrances, shower gels and lotions, aromatherapy, soaps and sanitizers, home fragrances, handbags, jewelry, and personal care accessories.

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