The Estee Lauder Companies Inc. (NYSE:EL) Receives Average Rating of "Hold" from Brokerages

Key Points

• Brokerages rate Estée Lauder “Hold” on average: Among 24 analysts, 12 recommend holding, eight recommend buying, two strongly recommend buying and two recommend selling. The average 12-month price target is $104.67.
• Recent results exceeded expectations: The company reported quarterly EPS of $0.39 versus the $0.32 consensus estimate, while revenue rose 6.3% year over year to $3.64 billion.
• Insiders have been selling shares: Company insiders sold 17,105 shares worth approximately $1.73 million over the past three months, while institutional investors and hedge funds own 55.15% of the stock.

Shares of The Estee Lauder Companies Inc. (NYSE:EL - Get Free Report) have received an average rating of "Hold" from the twenty-four brokerages that are currently covering the stock, MarketBeat.com reports. Two investment analysts have rated the stock with a sell recommendation, twelve have issued a hold recommendation, eight have given a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $104.6667.

EL has been the subject of a number of research reports. JPMorgan Chase & Co. lifted their price objective on Estee Lauder Companies from $94.00 to $112.00 and gave the stock an "overweight" rating in a research report on Thursday, August 20th. Jefferies Financial Group boosted their price objective on Estee Lauder Companies from $88.00 to $100.00 and gave the company a "hold" rating in a research report on Thursday, August 20th. Wells Fargo & Company increased their target price on Estee Lauder Companies from $85.00 to $104.00 and gave the stock an "equal weight" rating in a report on Thursday, August 20th. Canaccord Genuity Group boosted their price objective on shares of Estee Lauder Companies from $85.00 to $90.00 and gave the stock a "hold" rating in a research report on Thursday, August 20th. Finally, B. Riley Financial reiterated a "neutral" rating and set a $100.00 price objective (up from $85.00) on shares of Estee Lauder Companies in a research note on Thursday, August 20th.

Insider Transactions at Estee Lauder Companies

In related news, VP Rashida La Lande sold 7,766 shares of the stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $103.32, for a total transaction of $802,383.12. Following the sale, the vice president owned 14,357 shares of the company's stock, valued at $1,483,365.24. This represents a 35.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Charlene Barshefsky sold 3,775 shares of the firm's stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $98.82, for a total transaction of $373,045.50. Following the completion of the transaction, the director directly owned 50,971 shares in the company, valued at approximately $5,036,954.22. This represents a 6.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 17,105 shares of company stock valued at $1,729,325 in the last three months. Insiders own 13.05% of the company's stock.

Hedge Funds Weigh In On Estee Lauder Companies

A number of hedge funds have recently modified their holdings of EL. New Mexico Educational Retirement Board boosted its holdings in shares of Estee Lauder Companies by 0.9% in the fourth quarter. New Mexico Educational Retirement Board now owns 10,724 shares of the company's stock worth $1,123,000 after buying an additional 100 shares during the period. IFP Advisors Inc raised its holdings in shares of Estee Lauder Companies by 35.2% during the second quarter. IFP Advisors Inc now owns 415 shares of the company's stock valued at $33,000 after acquiring an additional 108 shares during the period. Allworth Financial LP lifted its position in shares of Estee Lauder Companies by 6.6% in the 4th quarter. Allworth Financial LP now owns 1,789 shares of the company's stock valued at $187,000 after acquiring an additional 110 shares in the last quarter. Parkside Financial Bank & Trust lifted its position in shares of Estee Lauder Companies by 17.9% in the 4th quarter. Parkside Financial Bank & Trust now owns 743 shares of the company's stock valued at $78,000 after acquiring an additional 113 shares in the last quarter. Finally, Valeo Financial Advisors LLC boosted its stake in Estee Lauder Companies by 4.4% in the 4th quarter. Valeo Financial Advisors LLC now owns 2,806 shares of the company's stock worth $294,000 after purchasing an additional 117 shares during the period. Institutional investors and hedge funds own 55.15% of the company's stock.

Estee Lauder Companies Stock Down 2.4%

EL stock opened at $96.38 on Friday. The stock has a market capitalization of $34.87 billion, a price-to-earnings ratio of 196.70, a price-to-earnings-growth ratio of 1.14 and a beta of 1.28. The company has a 50-day moving average of $90.07 and a two-hundred day moving average of $85.87. The company has a debt-to-equity ratio of 1.79, a current ratio of 1.22 and a quick ratio of 0.90. Estee Lauder Companies has a 52-week low of $66.22 and a 52-week high of $121.64.

Estee Lauder Companies (NYSE:EL - Get Free Report) last issued its earnings results on Wednesday, August 19th. The company reported $0.39 EPS for the quarter, beating analysts' consensus estimates of $0.32 by $0.07. Estee Lauder Companies had a return on equity of 23.52% and a net margin of 1.21%.The business had revenue of $3.64 billion during the quarter, compared to analyst estimates of $3.55 billion. During the same period in the prior year, the company posted $0.09 earnings per share. Estee Lauder Companies's revenue was up 6.3% on a year-over-year basis. Estee Lauder Companies has set its FY 2027 guidance at 3.100-3.350 EPS. As a group, equities research analysts anticipate that Estee Lauder Companies will post 3.3 EPS for the current year.

Estee Lauder Companies Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be given a dividend of $0.35 per share. The ex-dividend date is Monday, August 31st. This represents a $1.40 annualized dividend and a yield of 1.5%. Estee Lauder Companies's dividend payout ratio (DPR) is presently 285.71%.

Estee Lauder Companies Company Profile

The Estée Lauder Companies Inc is a global beauty company that develops, manufactures and markets prestige skincare, makeup, fragrance and hair-care products. Its portfolio includes Estée Lauder, Clinique, M·A·C, Bobbi Brown Cosmetics, La Mer, Jo Malone London, Aveda, Tom Ford Beauty and The Ordinary, among other brands.

Founded in 1946 by Estée and Joseph Lauder, the company began with four skincare products and has expanded into a broad international beauty business. Its products are sold through department and specialty stores, freestanding stores, e-commerce platforms, travel retail locations and other distribution channels.

Estée Lauder Companies serves consumers in markets around the world, including North America, Europe, Asia-Pacific, Latin America and the Middle East and Africa.

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