Estee Lauder Companies (NYSE:EL) Shares Gap Up - Time to Buy?

Key Points

• The Estee Lauder Companies (NYSE:EL) shares gapped up from $86.77 to $89.71 before settling at $87.69, with a trading volume of 628,082 shares.
• Analysts have mixed ratings, with 13 holding, 8 buying, and 1 strongly buying, while the consensus price target stands at $84.50.
• In its latest earnings report, Estee Lauder posted $0.65 earnings per share, exceeding estimates, but reported a year-over-year revenue decline of 9.9%.
• The company announced a quarterly dividend of $0.35, reflecting an annual yield of 1.60% and a negative payout ratio of -57.85%.

The Estee Lauder Companies Inc. (NYSE:EL - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $86.77, but opened at $89.71. Estee Lauder Companies shares last traded at $87.69, with a volume of 628,082 shares trading hands.

Wall Street Analysts Forecast Growth

EL has been the subject of several analyst reports. Hsbc Global Res upgraded Estee Lauder Companies from a "hold" rating to a "strong-buy" rating in a report on Friday, June 27th. Barclays boosted their price objective on shares of Estee Lauder Companies from $63.00 to $84.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 15th. Piper Sandler reissued an "overweight" rating and set a $75.00 price objective (down from $92.00) on shares of Estee Lauder Companies in a research note on Friday, May 2nd. Stifel Nicolaus lowered their price objective on shares of Estee Lauder Companies from $77.00 to $67.00 and set a "hold" rating for the company in a research note on Thursday, April 10th. Finally, Wells Fargo & Company boosted their price objective on shares of Estee Lauder Companies from $60.00 to $90.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 9th. Thirteen analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $84.50.

Estee Lauder Companies Trading Up 0.8%

The company has a current ratio of 1.41, a quick ratio of 1.02 and a debt-to-equity ratio of 1.68. The business's 50-day simple moving average is $76.73 and its two-hundred day simple moving average is $70.40. The company has a market capitalization of $31.46 billion, a PE ratio of -36.07, a PEG ratio of 6.42 and a beta of 1.17.

Estee Lauder Companies (NYSE:EL - Get Free Report) last posted its quarterly earnings data on Thursday, May 1st. The company reported $0.65 earnings per share for the quarter, beating analysts' consensus estimates of $0.29 by $0.36. The company had revenue of $2.66 billion during the quarter, compared to analysts' expectations of $3.51 billion. Estee Lauder Companies had a negative net margin of 5.89% and a positive return on equity of 15.60%. The firm's revenue for the quarter was down 9.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.97 EPS. On average, analysts predict that The Estee Lauder Companies Inc. will post 1.36 earnings per share for the current year.

Estee Lauder Companies Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, June 16th. Stockholders of record on Friday, May 30th were paid a $0.35 dividend. The ex-dividend date was Friday, May 30th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.60%. Estee Lauder Companies's dividend payout ratio (DPR) is presently -57.85%.

Institutional Investors Weigh In On Estee Lauder Companies

A number of institutional investors have recently modified their holdings of EL. Joel Isaacson & Co. LLC raised its position in shares of Estee Lauder Companies by 0.4% in the second quarter. Joel Isaacson & Co. LLC now owns 28,826 shares of the company's stock valued at $2,329,000 after purchasing an additional 120 shares during the period. Signaturefd LLC raised its position in shares of Estee Lauder Companies by 9.3% in the second quarter. Signaturefd LLC now owns 1,815 shares of the company's stock valued at $147,000 after purchasing an additional 154 shares during the period. Horizon Investments LLC increased its position in Estee Lauder Companies by 5.1% during the first quarter. Horizon Investments LLC now owns 3,351 shares of the company's stock worth $221,000 after acquiring an additional 164 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd increased its position in Estee Lauder Companies by 0.7% during the first quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 24,633 shares of the company's stock worth $1,626,000 after acquiring an additional 171 shares during the period. Finally, HB Wealth Management LLC increased its position in Estee Lauder Companies by 5.6% during the second quarter. HB Wealth Management LLC now owns 3,416 shares of the company's stock worth $276,000 after acquiring an additional 180 shares during the period. Institutional investors and hedge funds own 55.15% of the company's stock.

About Estee Lauder Companies

The Estée Lauder Companies Inc manufactures, markets, and sells skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products; and makeup products, such as lipsticks, lip glosses, mascaras, foundations, eyeshadows, and powders, as well as compacts, brushes, and other makeup tools.

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