e.l.f. Beauty (NYSE:ELF) Shares Gap Up - Still a Buy?

Key Points

• e.l.f. Beauty's shares gapped up from a previous close of $101.77 to $107.37 before trading at $109.87 with a trading volume of 816,467 shares.
• Analysts have shown bullish sentiment, with Bank of America raising its price target for e.l.f. Beauty from $113.00 to $135.00, while the company holds a consensus rating of "Moderate Buy" with an average target price of $123.81.
• The company reported an earnings per share (EPS) of $0.89, exceeding analysts' expectations and marking a 9% year-over-year revenue increase to $353.74 million for the quarter.

e.l.f. Beauty (NYSE:ELF - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $101.77, but opened at $107.37. e.l.f. Beauty shares last traded at $109.87, with a volume of 816,467 shares changing hands.

Analysts Set New Price Targets

Several research analysts have recently commented on the stock. The Goldman Sachs Group lifted their price target on shares of e.l.f. Beauty from $120.00 to $137.00 and gave the company a "buy" rating in a report on Thursday, August 7th. Canaccord Genuity Group reduced their price target on shares of e.l.f. Beauty from $150.00 to $128.00 and set a "buy" rating for the company in a research note on Thursday, August 7th. B. Riley reiterated a "buy" rating and issued a $150.00 target price (up from $110.00) on shares of e.l.f. Beauty in a report on Friday, June 13th. Jefferies Financial Group set a $115.00 target price on shares of e.l.f. Beauty and gave the stock a "buy" rating in a report on Thursday, May 29th. Finally, Raymond James Financial boosted their price target on shares of e.l.f. Beauty from $95.00 to $105.00 and gave the company a "strong-buy" rating in a report on Thursday, May 29th. Three equities research analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $123.81.

e.l.f. Beauty Price Performance

The company has a quick ratio of 2.34, a current ratio of 3.26 and a debt-to-equity ratio of 0.32. The company has a market capitalization of $7.11 billion, a P/E ratio of 70.53, a P/E/G ratio of 2.83 and a beta of 1.57. The company's 50-day simple moving average is $118.77 and its 200 day simple moving average is $88.38.

e.l.f. Beauty (NYSE:ELF - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $0.89 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.84 by $0.05. The business had revenue of $353.74 million for the quarter, compared to analyst estimates of $348.99 million. e.l.f. Beauty had a net margin of 7.29% and a return on equity of 16.36%. e.l.f. Beauty's revenue was up 9.0% compared to the same quarter last year. During the same period last year, the business posted $1.10 EPS. As a group, sell-side analysts expect that e.l.f. Beauty will post 2.38 earnings per share for the current fiscal year.

Insider Transactions at e.l.f. Beauty

In related news, CEO Tarang Amin sold 24,533 shares of e.l.f. Beauty stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $115.56, for a total value of $2,835,033.48. Following the transaction, the chief executive officer owned 188,991 shares in the company, valued at $21,839,799.96. This trade represents a 11.49% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Kory Marchisotto sold 11,860 shares of the company's stock in a transaction on Wednesday, June 4th. The shares were sold at an average price of $115.56, for a total transaction of $1,370,541.60. Following the transaction, the insider owned 159,799 shares of the company's stock, valued at approximately $18,466,372.44. The trade was a 6.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 126,589 shares of company stock worth $14,547,949. Corporate insiders own 3.90% of the company's stock.

Hedge Funds Weigh In On e.l.f. Beauty

Several large investors have recently bought and sold shares of ELF. Orion Capital Management LLC acquired a new position in e.l.f. Beauty during the 4th quarter valued at $30,000. EverSource Wealth Advisors LLC raised its stake in e.l.f. Beauty by 97.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 260 shares of the company's stock valued at $32,000 after purchasing an additional 128 shares during the last quarter. Golden State Wealth Management LLC acquired a new position in e.l.f. Beauty during the 1st quarter valued at $33,000. Northwestern Mutual Wealth Management Co. raised its stake in e.l.f. Beauty by 58.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 317 shares of the company's stock valued at $39,000 after purchasing an additional 117 shares during the last quarter. Finally, Larson Financial Group LLC raised its stake in e.l.f. Beauty by 56.5% during the 1st quarter. Larson Financial Group LLC now owns 676 shares of the company's stock valued at $42,000 after purchasing an additional 244 shares during the last quarter. 92.44% of the stock is currently owned by institutional investors and hedge funds.

e.l.f. Beauty Company Profile

e.l.f. Beauty, Inc is a holding company, which engages in the provision of inclusive, accessible, clean, vegan and cruelty free cosmetics and skin care products. The company focuses on the e-commerce, national retailers and international business channels. Its brands include elf, elf skin, WELL People and KEYS soulcare.