Estee Lauder Companies (NYSE:EL) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “Estee Lauder has surpassed the industry over a year, gaining from its solid focus on buyouts and product launches; strength in emerging markets and robust online business. Driven by these efforts, Estee Lauder marked its 13th and 3rd straight earnings and sales beat, respectively in first-quarter fiscal 2018, wherein both top and bottom lines grew year over year. Results were aided by contributions from BECCA and Too Faced. Moreover, the company witnessed strength across nearly all regions and product categories, with skin care and China standing out. Growth in travel retail and online channels also remained strong. Management expects continued growth opportunities in the global prestige beauty industry, which encouraged it to raise its outlook. However, soft retail traffic in the United States remains a hurdle. Also, management remains cautious about other economic and political issues that can affect consumer spending.”
Other equities research analysts have also issued reports about the stock. Oppenheimer restated a “buy” rating and set a $120.00 price objective (up from $110.00) on shares of Estee Lauder Companies in a report on Wednesday, September 20th. Deutsche Bank began coverage on shares of Estee Lauder Companies in a report on Wednesday, December 13th. They set a “hold” rating and a $134.00 price objective on the stock. Stifel Nicolaus raised their price objective on shares of Estee Lauder Companies from $114.00 to $121.00 and gave the stock a “buy” rating in a report on Thursday, October 19th. KeyCorp restated an “overweight” rating and set a $135.00 price objective (up from $115.00) on shares of Estee Lauder Companies in a report on Thursday, November 2nd. They noted that the move was a valuation call. Finally, Citigroup lifted their price target on shares of Estee Lauder Companies from $111.00 to $128.00 and gave the company a “neutral” rating in a research note on Thursday, November 2nd. Eight analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the company. The company currently has an average rating of “Buy” and an average target price of $113.84.
Estee Lauder Companies (NYSE:EL) last issued its quarterly earnings data on Wednesday, November 1st. The company reported $1.21 EPS for the quarter, topping analysts’ consensus estimates of $0.97 by $0.24. Estee Lauder Companies had a net margin of 11.30% and a return on equity of 33.64%. The business had revenue of $3.27 billion for the quarter, compared to analyst estimates of $3.16 billion. During the same period last year, the business posted $0.85 earnings per share. The firm’s quarterly revenue was up 14.3% on a year-over-year basis. equities analysts predict that Estee Lauder Companies will post 4.17 earnings per share for the current year.
In related news, insider 1992 Grat Remainder Trust Fbo sold 571,351 shares of Estee Lauder Companies stock in a transaction dated Wednesday, November 22nd. The shares were sold at an average price of $125.44, for a total transaction of $71,670,269.44. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Tracey Thomas Travis sold 5,469 shares of Estee Lauder Companies stock in a transaction dated Friday, November 3rd. The stock was sold at an average price of $122.00, for a total transaction of $667,218.00. Following the sale, the chief financial officer now directly owns 37,083 shares of the company’s stock, valued at approximately $4,524,126. The disclosure for this sale can be found here. In the last three months, insiders sold 1,513,773 shares of company stock valued at $188,808,765. Insiders own 16.24% of the company’s stock.
Several hedge funds have recently made changes to their positions in EL. Jennison Associates LLC bought a new stake in shares of Estee Lauder Companies during the 3rd quarter worth about $664,432,000. Janus Henderson Group PLC raised its stake in Estee Lauder Companies by 1,676.9% in the 2nd quarter. Janus Henderson Group PLC now owns 4,695,498 shares of the company’s stock worth $450,675,000 after purchasing an additional 4,431,247 shares in the last quarter. Northern Trust Corp raised its stake in Estee Lauder Companies by 41.1% in the 2nd quarter. Northern Trust Corp now owns 3,732,174 shares of the company’s stock worth $358,214,000 after purchasing an additional 1,086,562 shares in the last quarter. BlackRock Inc. raised its stake in Estee Lauder Companies by 7.4% in the 2nd quarter. BlackRock Inc. now owns 14,797,992 shares of the company’s stock worth $1,420,311,000 after purchasing an additional 1,022,956 shares in the last quarter. Finally, Fred Alger Management Inc. acquired a new stake in Estee Lauder Companies in the 2nd quarter worth about $94,952,000. 53.59% of the stock is owned by institutional investors and hedge funds.
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About Estee Lauder Companies
The Estee Lauder Companies Inc manufactures and markets skin care, makeup, fragrance and hair care products. The Company offers products, including skin care, makeup, fragrance, hair care and other. The Company operates in beauty products segment. The Company’s products are sold in over 150 countries and territories under brand names, including Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, MAC, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, AERIN, Tory Burch, RODIN olio lusso, Le Labo, Editions de Parfums Frederic Malle, GLAMGLOW, By Kilian, BECCA and Too Faced.
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