Meridith Webster, Vice President of Estee Lauder Companies Inc. (NYSE:EL), has sold 5,430 shares of the company’s stock in a transaction that took place on November 18, 2023. The shares were sold at an average price of $87.84, amounting to a total transaction value of $476,971.20. This sale was officially disclosed in a filing with the Securities and Exchange Commission.
The transaction occurred during a period of volatility for Estee Lauder’s stock, which experienced a decline of 1.6% on November 19, 2023, trading down $1.43 to reach $86.64 during midday trading. The trading volume for the day was 1,429,047 shares, significantly lower than its average daily volume of 3,995,469 shares. Currently, the company’s market capitalization stands at approximately $31.22 billion.
Financial Performance and Analyst Ratings
In its most recent earnings report released on October 30, 2023, Estee Lauder reported earnings per share (EPS) of $0.32, exceeding analysts’ expectations of $0.15 by $0.17. The company’s revenue for the quarter was $3.48 billion, surpassing the forecast of $3.38 billion and reflecting a year-over-year growth of 3.6%. Despite these positive results, the company faced a negative net margin of 7.91% but achieved a return on equity of 12.37%.
Looking forward, Estee Lauder has set its fiscal year 2026 guidance for EPS between $1.900 and $2.100. Analysts predict that the company will post an EPS of approximately $1.36 for the current fiscal year.
Several institutional investors have recently adjusted their holdings in Estee Lauder. For instance, Vanguard Group Inc. increased its position by 1.3% during the second quarter, now owning 26,904,441 shares valued at approximately $2.17 billion. Similarly, State Street Corp and Independent Franchise Partners LLP have also expanded their stakes in the company, indicating continued interest from institutional investors.
Market Outlook and Analyst Recommendations
Brokerage firms have varied opinions on Estee Lauder’s stock. Wells Fargo & Company recently raised its price target from $90.00 to $95.00 while maintaining an “equal weight” rating. In contrast, The Goldman Sachs Group upgraded the stock from “neutral” to “buy,” increasing their target price from $76.00 to $115.00. Other firms, including Telsey Advisory Group and JPMorgan Chase & Co., have also raised their price targets, reflecting a generally positive outlook among analysts.
Currently, Estee Lauder Companies holds a consensus rating of “Moderate Buy” with an average target price of $95.65 according to MarketBeat. Despite the recent fluctuations in stock price, the company remains a focal point for investors and analysts alike, due to its strong brand portfolio and global market presence.
Estee Lauder, a leading manufacturer of skin care, makeup, fragrance, and hair care products, continues to navigate the challenges of a dynamic market while under the scrutiny of both investors and analysts.
