Helen of Troy Limited (NASDAQ:HELE) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Helen of Troy has a “Moderate Buy” consensus from five analysts: two rate it a strong buy, two hold, and one sell. The average 12-month price target is $27.50.
• Empower Brands made an unsolicited, non-binding cash offer of $37 per share, valuing the company at about $1.6 billion; Helen of Troy’s board unanimously rejected it, so a deal is uncertain.
• In its latest reported quarter, Helen of Troy earned $0.79 per share, beating the $0.50 consensus, while revenue of $440.93 million fell slightly short of estimates but rose 2.1% year over year.

Shares of Helen of Troy Limited (NASDAQ:HELE - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the five research firms that are currently covering the company, Marketbeat reports. One research analyst has rated the stock with a sell rating, two have given a hold rating and two have issued a strong buy rating on the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $27.50.

Several equities research analysts have weighed in on the company. UBS Group boosted their price objective on Helen of Troy from $28.00 to $29.00 and gave the stock a "neutral" rating in a research note on Friday, October 9th. Wall Street Zen raised Helen of Troy from a "hold" rating to a "strong-buy" rating in a research report on Sunday, July 12th. Zacks Research upgraded Helen of Troy from a "hold" rating to a "strong-buy" rating in a report on Tuesday, October 13th. Canaccord Genuity Group lifted their price objective on shares of Helen of Troy from $25.00 to $26.00 and gave the stock a "hold" rating in a research note on Tuesday, October 6th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Helen of Troy in a research report on Monday, October 19th.

Key Headlines Impacting Helen of Troy

Here are the key news stories impacting Helen of Troy this week:

• Positive Sentiment: Empower Brands, a unit of Spectrum Brands, made an unsolicited, non-binding all-cash offer of $37 per share, valuing Helen of Troy at about $1.6 billion. The proposal was reportedly raised from an earlier $34-per-share bid, fueling takeover interest and helping lift HELE shares to a 52-week high. Article: Empower Brands Makes Unsolicited Bid to Buy Helen of Troy for $1.6 Billion
• Negative Sentiment: Helen of Troy’s board unanimously rejected the offer. Because the proposal is non-binding and has been turned down, a transaction is not assured; the rejection could temper takeover-related gains unless the bidder returns with improved terms. Article: Helen of Troy Rejects Empower Brands’ $37-Per-Share Acquisition Proposal

Hedge Funds Weigh In On Helen of Troy

Large investors have recently made changes to their positions in the company. Paradigm Capital Management Inc. NY boosted its stake in shares of Helen of Troy by 64.3% during the first quarter. Paradigm Capital Management Inc. NY now owns 927,100 shares of the company's stock valued at $13,369,000 after purchasing an additional 362,900 shares during the period. Bank of America Corp DE bought a new position in shares of Helen of Troy in the second quarter worth about $27,749,000. Bank of New York Mellon Corp bought a new stake in Helen of Troy during the 2nd quarter valued at about $2,768,000. Hsbc Holdings PLC bought a new stake in Helen of Troy during the 1st quarter valued at about $1,936,000. Finally, Wellington Management Group LLP increased its position in shares of Helen of Troy by 12.8% during the second quarter. Wellington Management Group LLP now owns 824,238 shares of the company's stock worth $23,961,000 after acquiring an additional 93,350 shares during the period.

Helen of Troy Stock Performance

NASDAQ:HELE opened at $37.77 on Friday. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.65 and a quick ratio of 0.75. Helen of Troy has a 1 year low of $13.85 and a 1 year high of $38.82. The stock's 50 day simple moving average is $28.52 and its two-hundred day simple moving average is $24.13. The company has a market cap of $883.48 million, a price-to-earnings ratio of -8.66 and a beta of 1.35.

Helen of Troy (NASDAQ:HELE - Get Free Report) last posted its earnings results on Thursday, October 8th. The company reported $0.79 EPS for the quarter, beating analysts' consensus estimates of $0.50 by $0.29. Helen of Troy had a positive return on equity of 7.73% and a negative net margin of 5.43%. The firm had revenue of $440.93 million during the quarter, compared to the consensus estimate of $442.33 million. During the same period in the prior year, the company earned $0.59 EPS. The company's quarterly revenue was up 2.1% compared to the same quarter last year. Helen of Troy has set its FY 2027 guidance at 3.600-4.150 EPS. As a group, equities analysts anticipate that Helen of Troy will post 3.09 earnings per share for the current fiscal year.

Helen of Troy Company Profile

Helen of Troy Limited is a consumer products company that develops, markets and distributes a portfolio of beauty, wellness, household and outdoor brands. Its products are sold through mass retailers, specialty stores, e-commerce channels and other distribution partners in North America and international markets.

The company's brand portfolio includes OXO, known for kitchen, cleaning and organization products; Hydro Flask and Osprey, which offer hydration, travel and outdoor equipment; and beauty brands such as Hot Tools, Drybar and Curlsmith.

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