e.l.f. Beauty (NYSE:ELF) Stock Price Up 7.1% - Here's Why

Key Points

• e.l.f. Beauty shares rose 7.1% in midday trading, reaching as high as $53.10 after closing at $49.57 the prior day. Trading volume was below average, with about 832,000 shares changing hands.
• The stock’s move came after the company reported better-than-expected quarterly results, including EPS of $0.32 versus estimates of $0.29 and revenue of $449.29 million versus $423.06 million expected. Revenue also grew 35.1% year over year.
• Despite recent price cuts from several analysts, Wall Street still holds a Moderate Buy consensus on ELF, with a consensus price target of $79.60. Analysts’ targets, however, have been trending lower across multiple firms.

e.l.f. Beauty (NYSE:ELF - Get Free Report) rose 7.1% during mid-day trading on Monday . The stock traded as high as $53.10 and last traded at $53.11. Approximately 832,013 shares were traded during trading, a decline of 69% from the average daily volume of 2,710,859 shares. The stock had previously closed at $49.57.

Wall Street Analyst Weigh In

ELF has been the topic of several analyst reports. Jefferies Financial Group decreased their price objective on e.l.f. Beauty from $85.00 to $70.00 and set a "buy" rating on the stock in a report on Thursday, May 21st. Deutsche Bank Aktiengesellschaft set a $65.00 target price on shares of e.l.f. Beauty in a report on Thursday, May 14th. Robert W. Baird reduced their price objective on e.l.f. Beauty from $115.00 to $90.00 and set an "outperform" rating for the company in a research report on Tuesday, April 28th. Morgan Stanley reduced their price objective on e.l.f. Beauty from $67.00 to $59.00 and set an "equal weight" rating for the company in a research report on Thursday, May 21st. Finally, Bank of America reduced their price objective on e.l.f. Beauty from $93.00 to $85.00 and set a "buy" rating for the company in a research report on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $79.60.

e.l.f. Beauty Price Performance

The company has a debt-to-equity ratio of 0.72, a current ratio of 2.35 and a quick ratio of 1.69. The company's 50 day simple moving average is $59.88 and its two-hundred day simple moving average is $73.33. The stock has a market capitalization of $3.13 billion, a P/E ratio of 113.91, a PEG ratio of 2.04 and a beta of 1.63.

e.l.f. Beauty (NYSE:ELF - Get Free Report) last announced its quarterly earnings data on Wednesday, May 20th. The company reported $0.32 EPS for the quarter, beating analysts' consensus estimates of $0.29 by $0.03. The company had revenue of $449.29 million during the quarter, compared to the consensus estimate of $423.06 million. e.l.f. Beauty had a net margin of 1.61% and a return on equity of 11.02%. The company's quarterly revenue was up 35.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.78 EPS. e.l.f. Beauty has set its FY 2027 guidance at 3.270-3.320 EPS. As a group, equities analysts expect that e.l.f. Beauty will post 2.41 EPS for the current fiscal year.

Insider Transactions at e.l.f. Beauty

In related news, insider Scott Milsten sold 23,797 shares of the company's stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $63.66, for a total value of $1,514,917.02. Following the sale, the insider directly owned 114,940 shares in the company, valued at $7,317,080.40. This represents a 17.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Tarang Amin sold 52,880 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $62.64, for a total value of $3,312,403.20. Following the completion of the sale, the chief executive officer owned 98,416 shares in the company, valued at $6,164,778.24. The trade was a 34.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 235,649 shares of company stock worth $14,647,024. 3.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On e.l.f. Beauty

A number of institutional investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC boosted its position 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 buying an additional 128 shares during the period. Northwestern Mutual Wealth Management Co. lifted its position in e.l.f. Beauty by 58.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 317 shares of the company's stock valued at $39,000 after acquiring an additional 117 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. bought a new position in e.l.f. Beauty in the 4th quarter valued at approximately $26,000. Hilton Head Capital Partners LLC purchased a new position in e.l.f. Beauty in the 4th quarter worth about $32,000. Finally, Johnson Financial Group Inc. purchased a new position in e.l.f. Beauty in the 3rd quarter worth about $64,000. Hedge funds and other institutional investors own 92.44% of the company's stock.

About e.l.f. Beauty

e.l.f. Beauty NYSE: ELF is an American cosmetics company known for offering an extensive range of affordable, trend-driven makeup and skincare products. The company's portfolio spans foundations, lipsticks, mascaras, brushes, serums, masks and other beauty essentials, all positioned at accessible price points. e.l.f. Beauty maintains a direct-to-consumer platform through its e-commerce site and engages in widespread retail partnerships with major chains such as Target, Walmart, Ulta Beauty and Amazon.

Founded in 2004 and headquartered in Oakland, California, e.l.f.

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