Reviewing The Case For BJ’s Wholesale Club Holdings Inc. (BJ) Going Higher

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The Vanguard Group, Inc. recently announced the acquisition of new stake in BJ’s Wholesale Club Holdings Inc. (NYSE:BJ). The institutional investor has increased its shareholding in the Consumer Defensive company by 2.01% to 12.79 million shares with purchase of 0.25 million shares. This fresh investment now brings its stake to 9.23% valued currently at $476.68 million. In addition, Putnam Investment Management LLC raised its holdings by 1.0 million to 6.83 million shares. And JPMorgan Investment Management, I. has lifted its position by 34.82% or 1.51 million shares – to 5.84 million shares.

With over 1.67 million BJ’s Wholesale Club Holdings Inc. (BJ) shares trading Thursday and a closing price of $40.49 on the day, the dollar volume was approximately $67.79 million. The shares have shown a negative weekly performance of -1.10% and its price on 07/30/20 lost nearly -2.74%. Currently, there are 136.09M common shares owned by the public and among those 135.07M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 19 analysts who have offered their price forecasts for BJ have a consensus price objective of $40.76. The analysts have set the share’s price value over the next 12 months at a high of $48.00 and a low of $30.00 should the stock experience a downside. Incidentally, analysts’ outlook for the BJ’s Wholesale Club Holdings Inc. stock is 1.90 for the next 12 months. The average price target is -2.43% below its last price level and a downside to the estimated low will see the stock lose -34.97% over that period. But an upside of 15.65% will see the stock hit the forecast high price target while mean target price for the stock is $41.00.

Insiders at the company have transacted a total of 211 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 90 of these insider trades were purchases, accounting for 2,203,214 shares. Insider sales of the common stock occurred on 121 occasions, with total insider shares sold totaling 22,422,439 shares.

The top 3 mutual fund holders in BJ’s Wholesale Club Holdings Inc. are Putnam Equity Income Fund, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. Putnam Equity Income Fund owns 5.08 million shares of the company’s stock, all valued at over $189.2 million. The company bought an additional 0.69 million shares recently to bring their total holdings to about 3.66% of the shares outstanding. Vanguard Total Stock Market Index sold 37775.0 shares to see its total holdings shrink to 3.93 million shares valued at over $146.33 million and representing 2.83% of the shares outstanding. Vanguard Small Cap Index Fund sold 90332.0 shares to bring its total holdings to over 3.47 million shares at a value of $129.18 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.50% of the shares outstanding.

Shares of BJ’s Wholesale Club Holdings Inc. (NYSE: BJ) opened at $39.90, down -$1.73 from a prior closing price of $41.63. However, the script later closed the day at $40.49, down -2.74%. The company’s stock has a 5-day price change of -1.10% and 53.90% over the past three months. BJ shares are trading 78.06% year to date (YTD), with the 12-month market performance up to 71.86% higher. It has a 12-month low price of $18.84 and touched a high of $42.06 over the same period. Currently, 1.67 million shares have been traded, compared to an average intraday trading volume of 2.92 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.70%, 9.95%, and 47.82% respectively.

Institutional ownership of BJ’s Wholesale Club Holdings Inc. (NYSE: BJ) 136.09M shares outstanding. Mutual fund holders own 36.50%, while other institutional holders and individual stakeholders account for 71.66% and 10.98% respectively.

It has a market capitalization of $5.73B. The stock’s trailing 12-month PE ratio is 22.68, while the earnings-per-share (ttm) stands at $1.79. The company has a PEG of 1.86 and a Quick Ratio of 0.20 with the debt-to-equity ratio at 41.54. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.00% over the week and 3.01% over the month.

Analysts forecast that BJ’s Wholesale Club Holdings Inc. (BJ) will achieve an EPS of $0.58 for the current quarter, $0.52 for the next quarter and $2.12 for 2022. The lowest estimate earnings-per-share for the quarter is $0.47 while analysts give the company a high EPS estimate of $0.82. Comparatively, EPS for the current quarter was $0.39 a year ago. Earnings per share for the fiscal year are expected to increase by 31.10%, and -7.49% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 19 brokerage firm advisors rate BJ’s Wholesale Club Holdings Inc. (BJ) as a “Strong Buy” at a consensus score of 1.90. Specifically, 13 Wall Street analysts polled rate the stock as a buy, while 4 of the 19 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the BJ, a number of firms have released research notes about the stock. MKM Partners stated their Sell rating for the stock in a research note on July 30, 2020, with the firm’s price target at $30. Citigroup coverage for the BJ’s Wholesale Club Holdings Inc. (BJ) stock in a research note released on April 15, 2020 offered a Neutral rating with a price target of $26. BofA/Merrill was of a view on March 18, 2020 that the stock is Buy, while Gordon Haskett gave the stock Buy rating on March 17, 2020, issuing a price target of. JP Morgan on their part issued Overweight rating on March 06, 2020.

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