Telsey Advisory Group has reaffirmed its outperform rating for shares of Ulta Beauty (NASDAQ:ULTA) in a research note released on August 28, 2023. The firm set a price target of $610.00 for the specialty retailer’s stock, reflecting a positive outlook amidst recent market activity.
Several other research firms have also provided updates on Ulta Beauty’s stock. Raymond James Financial reiterated its outperform rating, increasing its price objective from $580.00 to $605.00. This adjustment highlights confidence in the retailer’s performance following its quarterly earnings report. Additionally, Morgan Stanley raised its price target from $550.00 to $600.00 while maintaining an overweight rating.
On August 29, DA Davidson raised its price target to $625.00, also assigning a buy rating. Meanwhile, Jefferies Financial Group adjusted its target from $425.00 to $550.00, but opted for a hold rating. Overall, analysts have given Ulta Beauty a mix of ratings: fourteen have rated it as a buy, twelve as a hold, and one as a sell. According to MarketBeat.com, the average target price stands at $543.13.
Ulta Beauty’s Recent Performance and Stock Activity
Ulta Beauty’s shares opened at $519.81 on the morning of August 28. The stock has experienced significant movement, with a one-year low of $309.01 and a high of $539.00. The company has a market capitalization of $23.31 billion and a price-to-earnings ratio of 19.93.
In its latest earnings report, Ulta Beauty announced earnings per share (EPS) of $5.78, surpassing analysts’ expectations, which averaged $5.03. Revenue for the quarter reached $2.79 billion, exceeding the forecast of $2.66 billion. The company demonstrated strong financial performance with a return on equity of 48.78% and a net margin of 10.31%. Notably, year-over-year revenue increased by 9.3%, compared to the previous year’s earnings of $5.30 per share.
Insider Trading and Institutional Holdings
In related news, Director Mike C. Smith sold 500 shares of the company on September 4 for a total of $264,215.00. Following the sale, his remaining shares are valued at approximately $1,195,837.09, marking an 18.10% reduction in his stake. This transaction was disclosed in a filing with the Securities and Exchange Commission.
Institutional investors have also made recent adjustments to their holdings in Ulta Beauty. Cary Street Partners Investment Advisory LLC increased its stake by 107.7%, now owning 54 shares after acquiring additional stock. Hemington Wealth Management raised its holdings by 142.9%, while Elevation Point Wealth Partners LLC entered a new position during the second quarter. Approximately 90.39% of the company’s stock is currently held by institutional investors, indicating strong institutional interest.
Ulta Beauty continues to thrive as a significant player in the specialty beauty retail sector, offering a wide range of products, including cosmetics, skincare, and professional hair care items. The company’s robust performance and positive analyst ratings suggest a promising outlook as it navigates the competitive beauty market.
