On September 13, 2023, it was reported that Boston Common Asset Management LLC had increased its holdings in The Estée Lauder Companies Inc. by 20.7% during the first quarter of the year. According to the company’s filing with the SEC, Boston Common Asset Management LLC now owns 39,536 shares of Estée Lauder Companies’ stock, representing an addition of 6,786 shares compared to the previous quarter. The value of these holdings at the end of the most recent quarter was $9,744,000.
The Estée Lauder Companies (NYSE:EL) recently released its quarterly earnings data on August 18th. During this period, the company reported earnings per share of $0.07 for the quarter, surpassing analysts’ consensus estimates by $0.11 per share. This positive performance indicated a net margin of 6.32% and a return on equity of 21.79%. Furthermore, revenue for the quarter amounted to $3.61 billion—a figure that exceeded the consensus estimate of $3.48 billion. In comparison to the same quarter last year, the firm observed a growth rate of 1.3% in terms of revenue.
Analysts have closely scrutinized Estée Lauder Companies and issued several research reports regarding their evaluation of the company’s prospects and performance. For instance, Oppenheimer downgraded their rating from “outperform” to “market perform” in a report published on June 5th while Sanford C. Bernstein also lowered their rating from “outperform” to “market perform” and decreased their price target for EL shares from $230 to $160 in a research report released on August 24th.
Similarly, UBS Group reduced their price objective from $207 to $172 and assigned a “neutral” rating for Estée Lauder Companies’ stock on August 22nd. Bank of America also lowered their target price, dropping it from $205 to $175. They too gave a “neutral” rating for the stock on August 16th. In another report, Deutsche Bank Aktiengesellschaft decreased their target price from $206 to $199 but maintained a “buy” rating for EL shares on August 21st.
Currently, according to data from Bloomberg.com, there is a consensus among analysts that Estée Lauder Companies has a rating of “Moderate Buy”, with two analysts suggesting the stock as a sell, ten giving it a hold recommendation, fifteen recommending it as a buy, and one analyst suggesting it as a strong buy. The consensus target price for the company’s shares stands at $210.31.
In conclusion, Boston Common Asset Management LLC significantly increased its holdings in The Estée Lauder Companies Inc. during the first quarter of this year. The recent quarterly earnings report showed better-than-expected results for the beauty products company, with revenue growth compared to the same quarter last year. Analysts have varying views on Estée Lauder Companies’ prospects and performance, resulting in diverse ratings and target prices for its stock.
The Estée Lauder Companies Inc.
Updated on: 03/12/2023
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
12:00 AM (UTC)
Date:03 December, 2023
|Analyst / firm||Rating|
Changes in Hedge Fund Positions Impact Estée Lauder Companies’ Outlook
Estée Lauder Companies Faces Position Changes from Hedge Funds
September 13, 2023
The Estée Lauder Companies Inc. (EL) has experienced several modifications to its positions by various hedge funds in recent times. One of these funds is Advisory Services Network LLC, which raised its stake in the company by 12.7% during the first quarter. At present, Advisory Services Network LLC owns 3,517 shares of Estée Lauder Companies stock valued at $867,000 after obtaining an additional 396 shares in that period. Meanwhile, Rockefeller Capital Management L.P. increased its stake in the company by 8.2% during the same quarter, now owning a total of 120,058 shares valued at $29,586,000.
Chevy Chase Trust Holdings LLC also made changes to their position by increasing their ownership of Estée Lauder Companies by 2.6% in the first quarter. They currently own 522,399 shares valued at $128,750,000 after acquiring an additional 13,077 shares during that time frame. Additionally, Ilmarinen Mutual Pension Insurance Co raised their position by 12.9%, possessing a total of 30,700 shares worth $7,566,000 after buying another 3,500 shares in the first quarter.
Furthermore, Sunbelt Securities Inc., a newcomer to Estée Lauder Companies’ stakeholders list as of the first quarter of this year and invested approximately $52,000 into the business.
These reports shed light on the fact that approximately 55.15% of Estée Lauder Companies’ stock is owned by hedge funds and other institutional investors who have shaped their positions based on analysis and evaluation.
As for market performance today (September 13th), EL opened at $151.30 per share—reflecting fluctuations over time according to market conditions and internal affairs within the company itself.
Considering other financial indicators, Estée Lauder Companies boasts a market capitalization of $54.12 billion. The company’s 50-day simple moving average is $170.85, while the two-hundred day simple moving average stands at $202.73.
Moreover, the firm has a debt-to-equity ratio of 1.27 and maintains a quick ratio of 0.99 along with a current ratio of 1.46.
Investors also closely observe EL’s price-to-earnings (P/E) ratio, which currently stands at 54.42 with an associated P/E to growth (P/E/G) ratio of 3.44, reflecting the market sentiment around expected future earnings growth rates for the company.
Taking volatility into account, Estée Lauder Companies holds a beta value of 1.03—a measure indicating how much the company’s stock price fluctuates compared to the overall movement of the market.
Over the past year, Estée Lauder Companies’ stock has seen significant fluctuations between its lowest point recorded at $147.18 and its highest point registered at $283.62.
In terms of research analyst reports on EL’s performance in the stock market, notable companies such as Oppenheimer and Sanford C. Bernstein have revised their ratings for Estée Lauder Companies over time.
Oppenheimer downgraded their rating from “outperform” to “market perform” in their report dated June 5th—offering insight into potential shifts within investor expectations and business conditions surrounding Estée Lauder Companies up to that point in time.
Similarly, Sanford C. Bernstein lowered its rating from “outperform” to “market perform,” thereby revising its price target downwards from $230.00 to $160.00 on August 24th—a signifier that they anticipate potential downside risks or challenges in the near future.
Other prominent institutions like UBS Group and Bank of America were also cautious in their recent assessments. UBS Group dropped its price target for EL from $207.00 to $172.00 but maintained a “neutral” rating, while Bank of America reduced their target price on EL from $205.00 to $175.00 and also issued a “neutral” rating.
However, Deutsche Bank Aktiengesellschaft seems to have a more optimistic viewpoint on Estée Lauder Companies by maintaining their “buy” rating on the stock despite reducing the target price from $206.00 to $199.00.
Collectively, based on data compiled by Bloomberg.com, Estée Lauder Companies currently holds a consensus rating of “Moderate Buy” among research analysts, with a consensus target price of approximately $210.31.
As part of financial operations at Estée Lauder Companies, the company recently announced that it will distribute a quarterly dividend scheduled for payment on Friday, September 15th. Shareholders of record on Thursday, August 31st will receive a dividend payout of $0.66 per share.
With an annualized dividend value amounting to $2.64 and representing a yield of 1.74%, this highlights ongoing efforts by Estée Lauder Companies to provide returns to investors through dividend distributions.