Zacks Investment Research lowered shares of Estee Lauder Companies (NYSE:EL) from a strong-buy rating to a hold rating in a report released 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.”
Several other research analysts have also commented on EL. DA Davidson reaffirmed a hold rating and issued a $125.00 price target on shares of Estee Lauder Companies in a report on Thursday, November 2nd. They noted that the move was a valuation call. BMO Capital Markets lifted their price target on shares of Estee Lauder Companies from $107.00 to $126.00 and gave the company a market perform rating in a report on Thursday, November 2nd. Bank of America lifted their price target on shares of Estee Lauder Companies from $115.00 to $122.00 and gave the company a buy rating in a report on Friday, October 13th. Royal Bank of Canada reiterated an outperform rating and issued a $135.00 price objective (up from $115.00) on shares of Estee Lauder Companies in a research report on Friday, November 3rd. Finally, KeyCorp reiterated an overweight rating and issued a $135.00 price objective (up from $115.00) on shares of Estee Lauder Companies in a research report on Thursday, November 2nd. They noted that the move was a valuation call. Eight equities research analysts have rated the stock with a hold rating and nineteen have given a buy rating to the stock. Estee Lauder Companies has an average rating of Buy and an average target price of $115.16.
Estee Lauder Companies (NYSE:EL) last announced its quarterly earnings data on Wednesday, November 1st. The company reported $1.21 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.97 by $0.24. The company had revenue of $3.27 billion during the quarter, compared to analyst estimates of $3.16 billion. Estee Lauder Companies had a net margin of 11.30% and a return on equity of 33.64%. The firm’s revenue for the quarter was up 14.3% compared to the same quarter last year. During the same period last year, the business earned $0.85 EPS. equities research analysts predict that Estee Lauder Companies will post 4.17 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, December 15th. Stockholders of record on Thursday, November 30th were paid a $0.38 dividend. The ex-dividend date was Wednesday, November 29th. This represents a $1.52 annualized dividend and a dividend yield of 1.17%. This is a boost from Estee Lauder Companies’s previous quarterly dividend of $0.34. Estee Lauder Companies’s payout ratio is currently 41.08%.
In related news, insider 1992 Grat Remainder Trust Fbo sold 570,000 shares of the business’s stock in a transaction that occurred on Monday, November 20th. The shares were sold at an average price of $125.53, for a total transaction of $71,552,100.00. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Tracey Thomas Travis sold 5,469 shares of the business’s stock in a transaction that occurred on Friday, November 3rd. The shares were sold at an average price of $122.00, for a total transaction of $667,218.00. Following the transaction, the chief financial officer now directly owns 37,083 shares in the company, valued at $4,524,126. The disclosure for this sale can be found here. Insiders sold a total of 1,566,381 shares of company stock worth $195,955,337 in the last ninety days. Corporate insiders own 16.24% of the company’s stock.
A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Parametric Portfolio Associates LLC grew its position in Estee Lauder Companies by 15.4% during the third quarter. Parametric Portfolio Associates LLC now owns 759,671 shares of the company’s stock valued at $81,923,000 after purchasing an additional 101,375 shares in the last quarter. AXA lifted its stake in Estee Lauder Companies by 4.8% in the third quarter. AXA now owns 153,992 shares of the company’s stock valued at $16,606,000 after acquiring an additional 7,025 shares during the last quarter. Steward Partners Investment Advisory LLC acquired a new stake in Estee Lauder Companies in the third quarter valued at approximately $645,000. GSA Capital Partners LLP lifted its stake in Estee Lauder Companies by 15.0% in the third quarter. GSA Capital Partners LLP now owns 14,231 shares of the company’s stock valued at $1,535,000 after acquiring an additional 1,855 shares during the last quarter. Finally, Wealthsource Partners LLC lifted its stake in Estee Lauder Companies by 13.0% in the third quarter. Wealthsource Partners LLC now owns 3,493 shares of the company’s stock valued at $377,000 after acquiring an additional 401 shares during the last quarter. 53.59% of the stock is currently owned by hedge funds and other institutional investors.
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Estee Lauder Companies Company Profile
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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