Analysts at JPMorgan Chase & Co. have revised their price target for e.l.f. Beauty (NYSE: ELF), reducing it from $137.00 to $103.00. This adjustment comes in a note issued to investors on October 20, 2023, and reflects a cautious outlook for the beauty brand. Despite this decrease, JPMorgan maintains an “overweight” rating on the stock, which suggests a potential upside of approximately 32.02% based on its previous close.
The adjustment by JPMorgan follows a series of mixed evaluations from various financial institutions. On the same day, Raymond James Financial increased its target price for e.l.f. Beauty from $155.00 to $165.00, assigning a “strong-buy” rating. In contrast, Zacks Research downgraded the stock from a “hold” to a “strong sell” rating on November 11, 2023. The Goldman Sachs Group also lowered its price objective from $155.00 to $135.00, maintaining a “buy” rating. Meanwhile, Bank of America raised its target price from $135.00 to $160.00, also giving the stock a “buy” rating.
As a whole, e.l.f. Beauty has received a spectrum of ratings from analysts. Currently, one analyst has rated the stock as a “strong buy,” ten have given it a “buy” rating, six have deemed it a “hold,” and one has issued a “sell” rating. According to MarketBeat, the consensus rating stands at “Moderate Buy,” with an average price target of $124.53.
Recent Earnings and Future Guidance
e.l.f. Beauty recently announced its quarterly earnings results on November 5, 2023. The company reported earnings per share (EPS) of $0.68, surpassing analysts’ expectations of $0.57 by $0.11. Revenue for the quarter reached $343.94 million, falling short of the estimated $367.89 million. The company’s return on equity stood at 13.77%, with a net margin of 5.90%. Year-over-year, revenue increased by 14.2%, although it marked a decline from the previous year’s EPS of $0.77.
Looking ahead, e.l.f. Beauty has set its fiscal year 2026 guidance at $2.800-2.850 EPS, while analysts predict an EPS of $2.38 for the current year.
Insider Activity and Institutional Holdings
In notable insider activity, e.l.f. Beauty’s CEO, Tarang Amin, sold 116,315 shares of the company on October 1, 2023, at an average price of $132.24. The total transaction value was approximately $15,381,495.60. Following this sale, Amin holds 81,818 shares valued at around $10,819,612.32, reflecting a 58.71% decrease in his overall ownership of the stock. Insider ownership accounts for 3.90% of the total shares.
Institutional investors have also shown significant interest in e.l.f. Beauty recently. For instance, EverSource Wealth Advisors LLC increased its stake by 97.0% in the second quarter, bringing its total holdings to 260 shares. Northwestern Mutual Wealth Management Co. raised its holdings by 58.5%, now owning 317 shares. Smartleaf Asset Management LLC increased its position by an impressive 577.7%, acquiring 759 shares. In total, approximately 92.44% of e.l.f. Beauty’s stock is owned by hedge funds and other institutional investors.
e.l.f. Beauty, Inc. specializes in providing inclusive, accessible, clean, vegan, and cruelty-free cosmetics and skincare products. The company operates across various channels, including e-commerce and national retailers, under brands such as elf, elf skin, WELL People, and KEYS soulcare.
As e.l.f. Beauty navigates these changes in stock ratings and market activity, the coming months will be pivotal for its strategic growth and investor confidence.
