The price target for Estee Lauder Companies (NYSE:EL) has been increased from $105.00 to $119.00 by UBS Group, as outlined in a research note released on Wednesday. Despite this adjustment, UBS maintains a neutral rating on the stock, reflecting a cautious optimism about the company’s future performance.
Estee Lauder has attracted attention from various analysts recently. On January 5, 2024, Raymond James Financial upgraded the stock from a “market perform” rating to a “strong-buy” rating, setting a new price target of $130.00. Additionally, the Telsey Advisory Group revised its price objective from $99.00 to $105.00 while assigning a “market perform” rating. In a separate note, the Royal Bank of Canada increased its target from $107.00 to $113.00, indicating an “outperform” rating.
Amid these changes, Canaccord Genuity Group raised its target from $85.00 to $100.00, issuing a “hold” rating, while Zacks Research elevated Estee Lauder’s rating from “hold” to “strong-buy” on December 16, 2023. Currently, the stock holds an average rating of “Moderate Buy” with an average target price of $100.50, according to data from MarketBeat.com.
Recent Earnings and Financial Performance
Estee Lauder Companies reported its quarterly earnings on October 30, 2023, revealing a notable performance. The company achieved earnings per share (EPS) of $0.32, surpassing analysts’ expectations of $0.15 by $0.17. Revenue for the quarter totaled $3.48 billion, exceeding predictions of $3.38 billion. This marks a 3.6% increase in revenue compared to the same period last year, when the company posted an EPS of $0.14.
Looking ahead, Estee Lauder has provided guidance for its fiscal year 2026, projecting EPS between $1.90 and $2.10. Analysts also expect the company to report an EPS of $1.36 for the current fiscal year.
Dividend Announcements and Insider Transactions
The firm recently declared a quarterly dividend of $0.35, which was distributed on December 15, 2023. Shareholders on record as of November 28, 2023 received this dividend, with an annualized yield of 1.2%. The company’s payout ratio stands at -54.26%, indicating a commitment to returning value to shareholders.
In related news, Director Barry S. Sternlicht sold 3,972 shares on November 11, 2023, for approximately $364,748.76. Following this transaction, Sternlicht holds 34,812 shares valued at around $3,196,785.96, reflecting a 10.24% decrease in ownership. Similarly, Vice President Meridith Webster sold 5,430 shares on November 18, 2023, totaling $476,971.20 at an average price of $87.84. Currently, corporate insiders own approximately 13.05% of the company’s stock.
Institutional Investment Trends
Recent activities among institutional investors highlight a growing interest in Estee Lauder. Norges Bank acquired a new stake worth $189.66 million during the second quarter. Meanwhile, Victory Capital Management Inc. significantly increased its holdings by 3,181.4% in the third quarter, now owning 2,312,535 shares valued at approximately $203.78 million.
Similarly, Wellington Management Group LLP raised its stake by 3,986.4%, acquiring an additional 2,031,262 shares, bringing its total to 2,082,217 shares valued at around $183.49 million. The Bank of New York Mellon Corp also expanded its position by 46.4%, owning 6,112,501 shares valued at approximately $538.63 million.
Currently, institutional investors and hedge funds collectively own about 55.15% of Estee Lauder’s stock, reflecting strong confidence in the company’s future prospects.
Estee Lauder Companies, founded in 1946 and headquartered in New York City, continues to be a dominant force in the global beauty industry, offering a diverse range of skincare, makeup, fragrance, and hair care products across multiple retail channels.
