Handle With Care: BJ’s Wholesale Club Holdings Inc. (NYSE: BJ)


BlackRock Fund Advisors 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 8.84% to 13.25 million shares with purchase of 1.08 million shares. This fresh investment now brings its stake to 9.56% valued currently at $530.47 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.17 million to 12.96 million shares. And Putnam Investment Management LLC has lifted its position by 11.00% or 0.75 million shares – to 7.58 million shares.

With over 2.23 million BJ’s Wholesale Club Holdings Inc. (BJ) shares trading Tuesday and a closing price of $46.89 on the day, the dollar volume was approximately $104.38 million. The shares have shown a positive weekly performance of 7.97% and its price on 08/25/20 lost nearly -0.47%. Currently, there are 136.09M common shares owned by the public and among those 135.05M 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: 20 analysts who have offered their price forecasts for BJ have a consensus price objective of $49.94. The analysts have set the share’s price value over the next 12 months at a high of $60.00 and a low of $33.00 should the stock experience a downside. Incidentally, analysts’ outlook for the BJ’s Wholesale Club Holdings Inc. stock is 2.00 for the next 12 months. The average price target is -0.9% below its last price level and a downside to the estimated low will see the stock lose -42.09% over that period. But an upside of 21.85% will see the stock hit the forecast high price target while mean target price for the stock is $51.00.

Insiders at the company have transacted a total of 201 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 88 of these insider trades were purchases, accounting for 2,171,353 shares. Insider sales of the common stock occurred on 113 occasions, with total insider shares sold totaling 22,324,011 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 $203.31 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 2338.0 shares to see its total holdings shrink to 3.92 million shares valued at over $157.15 million and representing 2.83% of the shares outstanding. Vanguard Small Cap Index Fund sold 22740.0 shares to bring its total holdings to over 3.44 million shares at a value of $137.9 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.48% of the shares outstanding.

Shares of BJ’s Wholesale Club Holdings Inc. (NYSE: BJ) opened at $47.16, up $0.05 from a prior closing price of $47.11. However, the script later closed the day at $46.89, down -0.47%. The company’s stock has a 5-day price change of 7.97% and 30.14% over the past three months. BJ shares are trading 106.20% year to date (YTD), with the 12-month market performance up to 80.90% higher. It has a 12-month low price of $18.84 and touched a high of $47.13 over the same period. Currently, 2.23 million shares have been traded, compared to an average intraday trading volume of 2.37 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 10.90%, 18.24%, and 62.36% respectively.

Institutional ownership of BJ’s Wholesale Club Holdings Inc. (NYSE: BJ) 136.09M shares outstanding. Mutual fund holders own 36.40%, while other institutional holders and individual stakeholders account for 70.94% and 11.00% respectively.

It has a market capitalization of $6.27B. The stock’s trailing 12-month PE ratio is 26.27, while the earnings-per-share (ttm) stands at $1.79. The company has a PEG of 1.51 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 4.19% over the week and 3.18% over the month.

Analysts forecast that BJ’s Wholesale Club Holdings Inc. (BJ) will achieve an EPS of $0.63 for the current quarter, $0.54 for the next quarter and $2.35 for 2022. The lowest estimate earnings-per-share for the quarter is $0.49 while analysts give the company a high EPS estimate of $0.78. Comparatively, EPS for the current quarter was $0.41 a year ago. Earnings per share for the fiscal year are expected to increase by 31.10%, and -8.93% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate BJ’s Wholesale Club Holdings Inc. (BJ) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 13 Wall Street analysts polled rate the stock as a buy, while 5 of the 20 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. DA Davidson stated their Buy rating for the stock in a research note on August 14, 2020, with the firm’s price target at $50. Deutsche Bank coverage for the BJ’s Wholesale Club Holdings Inc. (BJ) stock in a research note released on August 13, 2020 offered a Hold rating with a price target of. Credit Suisse was of a view on August 06, 2020 that the stock is Outperform, while MKM Partners gave the stock Sell rating on July 30, 2020, issuing a price target of $30. Citigroup on their part issued Neutral rating on April 15, 2020.


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