BJ’s Wholesale Club Holdings Inc. (NYSE: BJ) stock fell -0.17% on Friday to $69.36 against a previous-day closing price of $69.48. With 1.13 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.18 million shares. During the session, the Discount Stores company that operates in wider Consumer Defensive sector, reached to the highest price of $69.73 whereas the lowest price it dropped to was $68.91. The 52-week range on BJ shows that it touched its highest point at $74.09 and its lowest point at $50.18 during that stretch. It currently has a 1-year price target of $72.19. Beta for the stock currently stands at 0.46.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BJ was up-trending over the past week, with a rise of 2.47%, but this was up by 6.30% over a month. Three-month performance surged to 3.14% while six-month performance rose 13.84%. The stock gained 34.08% in the past year, while it has gained 3.57% so far this year. A look at the trailing 12-month EPS for BJ yields 3.33 with Next year EPS estimates of 3.67. For the next quarter, that number is 0.77. This implies an EPS growth rate of 1.90% for this year and 10.88% for next year. EPS is expected to grow by 6.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 54.30%.
Float and Shares Shorts:
At present, 134.24 million BJ shares are outstanding with a float of 133.60 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.75 million, which was 3.51% higher than short shares on Jun 14, 2022. In addition to Mr. Christopher J. Baldwin as the firm’s Exec. Chairman, Mr. Robert W. Eddy serves as its Pres, CEO & Director.
Through their ownership of 104.50% of BJ’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 64.68% of BJ, in contrast to 39.08% held by mutual funds. Shares owned by individuals account for 10.93%. As the largest shareholder in BJ with 10.79% of the stake, Fidelity Management & Research Co holds 14,579,273 shares worth 14,579,273. A second-largest stockholder of BJ, BlackRock Fund Advisors, holds 13,734,344 shares, controlling over 10.16% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in BJ, holding 13,618,296 shares or 10.07% stake. With a 2.95% stake in BJ, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,982,382 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.88% of BJ stock, is the second-largest Mutual Fund holder. It holds 3,890,909 shares valued at 242.48 million. Vanguard Small Cap Index Fund holds 2.52% of the stake in BJ, owning 3,409,102 shares worth 212.46 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BJ since 18 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BJ analysts setting a high price target of $86.00 and a low target of $57.00, the average target price over the next 12 months is $72.25. Based on these targets, BJ could surge 23.99% to reach the target high and fall by -17.82% to reach the target low. Reaching the average price target will result in a growth of 4.17% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BJ will report FY 2023 earnings on 03/02/2023. Analysts have provided yearly estimates in a range of $3.36 being high and $3.25 being low. For BJ, this leads to a yearly average estimate of $3.30. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. BJ’s Wholesale Club Holdings Inc. surprised analysts by $0.15 when it reported $0.87 EPS against a consensus estimate of $0.72. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $0.83 and the low estimate is $0.67. The average estimate for the next quarter is thus $0.77.
Summary of Insider Activity:
Insiders traded BJ stock several times over the past three months with 9 Buys and 9 Sells. In these transactions, 35,138 shares were bought while 53,709 shares were sold. The number of buy transactions has increased to 31 while that of sell transactions has risen to 42 over the past year. The total number of shares bought during that period was 310,305 while 414,608 shares were sold.