Ready to Jump After Recent Trade: Victoria’s Secret & Co. (VSCO)

Victoria’s Secret & Co. (NYSE: VSCO) stock fell -1.94% on Tuesday to $39.36 against a previous-day closing price of $40.14. With 0.95 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.31 million shares. During the session, the Apparel Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $40.16 whereas the lowest price it dropped to was $39.36. The 52-week range on VSCO shows that it touched its highest point at $65.20 and its lowest point at $26.14 during that stretch. It currently has a 1-year price target of $46.91.

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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 VSCO was up-trending over the past week, with a rise of 2.34%, but this was down by -0.83% over a month. Three-month performance surged to 5.78% while six-month performance rose 17.63%. The stock lost -24.99% in the past year, while it has gained 10.01% so far this year. A look at the trailing 12-month EPS for VSCO yields 4.75 with Next year EPS estimates of 4.92. For the next quarter, that number is 2.25. This implies an EPS growth rate of -34.00% for this year and 3.79% for next year.

Float and Shares Shorts:

At present, 81.00 million VSCO shares are outstanding with a float of 72.06 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.69 million, which was 8.24% higher than short shares on Sep 14, 2022. In addition to Mr. Martin P. Waters as the firm’s CEO & Director, Mr. Timothy A. Johnson serves as its EVP, CFO & Chief Admin. Officer.


Institutional Ownership:

Through their ownership of 92.31% of VSCO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 49.10% of VSCO, in contrast to 43.51% held by mutual funds. Shares owned by individuals account for 120.15%. As the largest shareholder in VSCO with 12.34% of the stake, Fidelity Management & Research Co holds 9,976,841 shares worth 9,976,841. A second-largest stockholder of VSCO, The WindAcre Partnership LLC, holds 7,549,300 shares, controlling over 9.34% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in VSCO, holding 7,047,110 shares or 8.72% stake. With a 3.10% stake in VSCO, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 2,506,590 shares are owned by the mutual fund manager. The Fidelity Blue Chip Growth Fund, which owns about 3.04% of VSCO stock, is the second-largest Mutual Fund holder. It holds 2,456,083 shares valued at 87.88 million. Vanguard Total Stock Market Index holds 2.74% of the stake in VSCO, owning 2,216,580 shares worth 79.31 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VSCO since 11 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 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 VSCO analysts setting a high price target of $60.00 and a low target of $27.00, the average target price over the next 12 months is $46.91. Based on these targets, VSCO could surge 52.44% to reach the target high and fall by -31.4% to reach the target low. Reaching the average price target will result in a growth of 19.18% 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. VSCO will report FY 2023 earnings on 03/02/2023. Analysts have provided yearly estimates in a range of $5.00 being high and $4.41 being low. For VSCO, this leads to a yearly average estimate of $4.70. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Victoria’s Secret & Co. surprised analysts by $0.06 when it reported $0.29 EPS against a consensus estimate of $0.23. The surprise factor in the prior quarter was $0.14. Based on analyst estimates, the high estimate for the next quarter is $2.50 and the low estimate is $2.15. The average estimate for the next quarter is thus $2.24.

Summary of Insider Activity:

Insiders traded VSCO stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 13,298 shares were bought while 109,968 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 23 over the past year. The total number of shares bought during that period was 369,025 while 489,586 shares were sold.

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