L Brands (LB, $12.06) to contest Sycamore Partners' notice to end Victoria Secret deal
L Brands announced that private-equity firm Sycamore Partners gave legal notice to terminate the agreement to buy the controlling stake of lingerie brand Victoria’s Secret.
Earlier this year, L Brands had said that it would sell a controlling stake in its Victoria’s Secret unit to Sycamore, valuing Secret at $1.1 billion. L Brands wanted to focus on its Bath & Body Works brand.
“Sycamore Partners delivered a notice April 22 purporting to terminate the transaction agreement relating to the sale of a 55% interest in … Victoria’s Secret,” L Brands said in a statement.
But L Brands believes that Sycamore Partners’ purported termination of the transaction agreement is invalid, and it intends to pursue all legal remedies to enforce its contractual rights (as indicated in the company’s statement).
BBWI's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for BBWI turned positive on September 18, 2024. Looking at past instances where BBWI's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where BBWI's RSI Oscillator exited the oversold zone, of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on October 15, 2024. You may want to consider a long position or call options on BBWI as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
BBWI moved above its 50-day moving average on October 10, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BBWI advanced for three days, in of 283 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BBWI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (12.064). P/E Ratio (13.076) is within average values for comparable stocks, (36.044). Projected Growth (PEG Ratio) (1.320) is also within normal values, averaging (2.650). Dividend Yield (0.016) settles around the average of (0.034) among similar stocks. P/S Ratio (1.548) is also within normal values, averaging (18.679).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. BBWI’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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an operator of retail business
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