According to recent disclosure with the Securities and Exchange Commission, the Teacher Retirement System of Texas has reduced its holdings in e.l.f. Beauty, Inc. by 18.9% during the second quarter of this year. The fund now owns 34,889 shares of the company’s stock after selling 8,135 shares in that period. This represents a decrease in ownership from 0.06% to an estimated value of $3,985,000.
On August 1st, e.l.f. Beauty released its quarterly earnings data, reporting an EPS (earnings per share) of $1.00 for the quarter. This surpassed analysts’ consensus estimates of $0.49 by $0.51. The company’s net margin stood at 14.87%, showcasing its profitability, while their return on equity was calculated at 26.43%. e.l.f Beauty generated revenue of $216.34 million during this period, surpassing the expectations set by analysts at $184.92 million.
In light of these developments, several research firms have provided valuable insights into e.l.f Beauty’s potential growth prospects. Raymond James raised their target price on shares of e.l.f Beauty from $125 to $145 and issued an “outperform” rating for the stock on August 2nd.
Similarly, Stifel Nicolaus lifted their target price from $107 to $127 and assigned a “hold” rating to the company based on their evaluation.
DA Davidson also deemed elf Beauty as worth buying given its substantial progress in the market and increased their price target from $163 to $176 on September 7th.
Bank of America further concurred with these bullish sentiments and boosted their price objective from $155 to $165 for e.l.f Beauty on August 30th.
Lastly, StockNews.com initiated coverage on e.l.f Beauty with a “hold” rating on August 17th.
Overall, four equities research analysts have rated the stock as a ‘hold’, while nine have issued a ‘buy’ rating for e.l.f. Beauty. Bloomberg.com reports that the average rating for the stock is classified as “Moderate Buy” with a consensus price target of $126.25.
This information serves as useful guidance for potential investors interested in making informed decisions regarding e.l.f. Beauty’s future investment prospects.
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e.l.f. Beauty: Strong Institutional Interest and Insider Stock Sales Point to Future Growth Potential
On October 2, 2023, several institutional investors and hedge funds made noteworthy changes to their positions in e.l.f. Beauty (ELF). The enigmatic Dark Forest Capital Management LP entered the scene during the first quarter of this year by purchasing a new position in e.l.f. Beauty worth $27,000. Following a similar course of action, Point72 Middle East FZE also acquired a new position in e.l.f. Beauty during the fourth quarter valued at $28,000.
However, it was CWM LLC that truly caught the attention of industry observers with its remarkable increase in position by 89.7% during the first quarter. As a result of buying an additional 182 shares in that period, CWM LLC now owns 385 shares of e.l.f.’s stock worth $32,000. Covestor Ltd also demonstrated an outstanding stake raise in shares of e.l.f Beauty – an astounding increase of 8,340% in the first quarter alone. This surge led Covestor Ltd to acquire 1,266 shares worth $33,000.
Finally, Point72 Asset Management L.P., renowned for their shrewd investment strategies, bought a new position in e.l.f. Beauty’s shares during the fourth quarter that amounted to approximately $46,000. All these maneuvers indicate that hedge funds and other institutional investors currently hold an overwhelming majority stake- around 92.44%- in e.l.f Beauty’s stock.
In other developments surrounding e.l.f. Beauty Inc., Director Tiffany F. Daniele conducted a significant stock transaction on Thursday, August 31st by selling off 1,253 shares at an average price of $139.09 per share for a total value exceeding $174k. Following this sale, Ms. Daniele now holds just over 4,800 shares which amount to nearly $669k based on the current market price.
Further news reveals that CEO Tarang Amin also participated in the selling spree by offloading 39,740 shares of e.l.f. Beauty stock on Wednesday, July 5th for a total value of $4.52 million, with an average price of $113.80 per share. After this transaction, Mr. Amin’s direct ownership of the company’s stock stands at approximately 252,792 shares valued at around $28.77 million.
Upon examination of these stock sales, it becomes clear that insiders have been actively divesting their holdings in e.l.f. Beauty over the last ninety days. The total value of insider sales amounts to a staggering $20.94 million, representing a significant 5.20% stake in the company.
Looking closer at e.l.f Beauty’s performance in the market, the stock opened at $109.83 on October 2nd. Its market capitalization stands at an impressive $5.98 billion, and its price-to-earnings ratio sits at 62.05, reflecting investor confidence and market demand for this brand.
Examining its trading trends over a prolonged period reveals that e.l.f Beauty has shown stability and growth potential with a price-to-earnings-growth ratio of 2.63 and a beta rate of 1.54.
The firm’s fifty-day moving average price is recorded as $123.83 while its two-hundred-day moving average price stood at $106.20 during October 2023.
From a financial standpoint, e.l.f Beauty holds remarkable liquidity with a quick ratio of 2.48 and an impressive current ratio of 3.38 which signifies strong financial health amidst adversities.
It is worth noting that despite its recent success, e.l.f Beauty has experienced both highs and lows throughout the past year; its lowest point being $36.77 within the fifty-two-week timeline while its highest point reached an impressive $139.85.
Overall, the recent flurry of activity from institutional investors and hedge funds, along with insider stock sales, indicates a significant degree of interest in e.l.f Beauty. The company’s stable market presence, strong financial performance, and consistent growth suggest that investors see value in this cosmetics brand and anticipate positive growth potential in the future.
