Estee Lauder Companies (EL) Upgraded to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Estee Lauder Companies (NYSE:EL) from a hold rating to a buy rating in a report published on Tuesday. They currently have $150.00 target price on the stock.
According to Zacks, “Estee Lauder has surpassed the industry over a year, courtesy of focus on buyouts and product launches; strength in emerging markets; and solid growth in travel retail and online business. These factors helped the company to mark its 14th and 4th straight earnings and sales beat, respectively in second-quarter fiscal 2018, wherein both top and bottom lines grew year over year. Results gained from solid cost savings and contributions from BECCA and Too Faced. Sturdy growth in travel retail and online channels also drove performance. Notably, the company witnessed strength in most geographic regions and categories — with skin care and makeup standing out. Continued growth opportunities in the global prestige beauty industry, along with expected gains from tax reforms also led to a raised view. However, weak gross margin and soft U.S. retail traffic remain hurdles. Macroeconomic issues that could affect consumer spending also pose threats.”
Other equities research analysts also recently issued research reports about the company. Argus boosted their price target on Estee Lauder Companies from $125.00 to $142.00 and gave the company a buy rating in a research report on Thursday, November 2nd. Royal Bank of Canada set a $115.00 price target on Estee Lauder Companies and gave the company a buy rating in a research report on Monday, October 23rd. Stifel Nicolaus boosted their price target on Estee Lauder Companies from $114.00 to $121.00 and gave the company a buy rating in a research report on Thursday, October 19th. KeyCorp set a $115.00 price target on Estee Lauder Companies and gave the company a buy rating in a research report on Monday, October 16th. Finally, Bank of America upped their target price on Estee Lauder Companies from $115.00 to $122.00 and gave the stock a buy rating in a research report on Friday, October 13th. Five research analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the stock. Estee Lauder Companies currently has an average rating of Buy and a consensus price target of $128.57.
Estee Lauder Companies (NYSE:EL) last posted its quarterly earnings results on Friday, February 2nd. The company reported $1.52 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.44 by $0.08. Estee Lauder Companies had a return on equity of 34.86% and a net margin of 8.43%. The firm had revenue of $3.74 billion during the quarter, compared to the consensus estimate of $3.68 billion. During the same quarter in the previous year, the business earned $1.22 earnings per share. The firm’s quarterly revenue was up 16.7% compared to the same quarter last year. equities research analysts forecast that Estee Lauder Companies will post 4.36 EPS for the current year.
The business also recently announced a quarterly dividend, which will be paid on Thursday, March 15th. Stockholders of record on Wednesday, February 28th will be given a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 1.16%. The ex-dividend date is Tuesday, February 27th. Estee Lauder Companies’s payout ratio is 52.78%.
In related news, EVP Michael O’hare sold 26,203 shares of the business’s stock in a transaction dated Monday, February 5th. The stock was sold at an average price of $133.40, for a total value of $3,495,480.20. Following the transaction, the executive vice president now owns 7,583 shares in the company, valued at $1,011,572.20. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider 1992 Grat Remainder Trust Fbo sold 570,000 shares of the business’s stock in a transaction dated Monday, November 20th. The stock was sold at an average price of $125.53, for a total value of $71,552,100.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,381,341 shares of company stock worth $173,874,552. Insiders own 16.24% of the company’s stock.
Large investors have recently added to or reduced their stakes in the stock. First Republic Investment Management Inc. lifted its stake in shares of Estee Lauder Companies by 107.3% in the third quarter. First Republic Investment Management Inc. now owns 30,303 shares of the company’s stock worth $3,268,000 after acquiring an additional 15,684 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec raised its stake in Estee Lauder Companies by 7.3% during the third quarter. Caisse DE Depot ET Placement DU Quebec now owns 23,579 shares of the company’s stock valued at $2,553,000 after buying an additional 1,600 shares in the last quarter. Investec Asset Management LTD raised its stake in Estee Lauder Companies by 931.2% during the third quarter. Investec Asset Management LTD now owns 1,040,505 shares of the company’s stock valued at $112,208,000 after buying an additional 939,600 shares in the last quarter. Hartford Investment Management Co. raised its stake in Estee Lauder Companies by 3.0% during the third quarter. Hartford Investment Management Co. now owns 50,131 shares of the company’s stock valued at $5,406,000 after buying an additional 1,473 shares in the last quarter. Finally, Cubist Systematic Strategies LLC raised its stake in Estee Lauder Companies by 519.4% during the third quarter. Cubist Systematic Strategies LLC now owns 28,592 shares of the company’s stock valued at $3,083,000 after buying an additional 23,976 shares in the last quarter. Institutional investors and hedge funds own 54.40% of the company’s stock.
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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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