Meridith Webster, Vice President of Estee Lauder Companies Inc. (NYSE:EL), executed a significant stock sale on November 18, 2023, offloading 5,430 shares at an average price of $87.84. The total transaction amounted to $476,971.20, as disclosed in a legal filing with the Securities and Exchange Commission.
Following this transaction, Estee Lauder stock experienced a slight decline of 1.6% during midday trading on the following day, reaching $86.64. A total of 1,429,047 shares changed hands, contrasting with the company’s average trading volume of approximately 3,995,469 shares. The company currently holds a market capitalization of $31.22 billion, and its stock has fluctuated between a 12-month low of $48.37 and a high of $104.53.
Recent Earnings and Financial Overview
The Estee Lauder Companies reported its quarterly earnings on October 30, 2023, revealing earnings per share (EPS) of $0.32. This figure surpassed analysts’ expectations, which had estimated an EPS of $0.15. The company generated revenue of $3.48 billion for the quarter, exceeding the projected $3.38 billion. Year-over-year, this represented a revenue increase of 3.6%.
Despite the positive revenue results, Estee Lauder recorded a negative net margin of 7.91% but maintained a positive return on equity of 12.37%. The company has set its fiscal year 2026 guidance with an expected EPS range between $1.90 and $2.10. Analysts forecast an average EPS of $1.36 for the current fiscal year.
Institutional Investments and Market Outlook
Recent fluctuations in Estee Lauder’s stock have prompted several institutional investors to adjust their holdings. For instance, Vanguard Group Inc. increased its stake by 1.3% during the second quarter, acquiring an additional 341,235 shares for a total of 26,904,441 shares valued at approximately $2.17 billion. Similarly, State Street Corp expanded its position by 2.4% in the third quarter, now owning 11,118,587 shares worth around $979.77 million.
The stock is currently held 55.15% by hedge funds and institutional investors, demonstrating significant institutional confidence.
Market analysts have varied opinions on Estee Lauder’s stock performance. Wells Fargo & Company raised its price target from $90.00 to $95.00, maintaining an “equal weight” rating. Meanwhile, The Goldman Sachs Group elevated its rating from “neutral” to “buy,” increasing its target from $76.00 to $115.00.
Overall, Estee Lauder Companies has received a consensus rating of “Moderate Buy,” with an average target price of $95.65, reflecting a generally optimistic outlook among analysts.
The Estee Lauder Companies Inc. is a global leader in manufacturing and retailing skin care, makeup, fragrance, and hair care products, with a diverse portfolio that caters to a wide range of consumer needs. Its continued performance will be closely monitored as it navigates market dynamics and investor expectations.
