Redwood Investment Management LLC Makes New Investment in Ulta Beauty Inc. $ULTA

Key Points

• Redwood Investment Management acquired a new Ulta Beauty stake of 2,607 shares valued at approximately $1.18 million during the second quarter. Institutional investors own 90.39% of the company, with BlackRock and Norges Bank among other major recent buyers.
• Ulta’s latest quarterly results exceeded expectations, with EPS of $7.74 versus the $6.89 consensus and revenue up 11.1% year over year to $3.16 billion. Analysts maintain a “Moderate Buy” consensus and a $636.41 average price target, though several firms recently lowered their targets.
• Investors are focused on the upcoming earnings report and potential same-store-sales strength, while Ulta’s new Proya partnership offers assortment expansion. Increasing competition from Target’s expanded prestige-beauty offerings remains a longer-term risk.

Redwood Investment Management LLC acquired a new stake in shares of Ulta Beauty Inc. (NASDAQ:ULTA - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 2,607 shares of the specialty retailer's stock, valued at approximately $1,176,000.

Other institutional investors have also made changes to their positions in the company. BlackRock Inc. purchased a new position in Ulta Beauty during the 2nd quarter worth approximately $1,815,712,000. Diamant Asset Management Inc. lifted its holdings in shares of Ulta Beauty by 52,171.0% in the first quarter. Diamant Asset Management Inc. now owns 1,474,042 shares of the specialty retailer's stock valued at $77,050,000 after purchasing an additional 1,471,222 shares in the last quarter. Norges Bank purchased a new stake in shares of Ulta Beauty in the fourth quarter valued at $430,963,000. Bank of America Corp DE acquired a new stake in shares of Ulta Beauty in the second quarter worth $260,192,000. Finally, Legal & General Group Plc acquired a new stake in shares of Ulta Beauty in the second quarter worth $161,600,000. 90.39% of the stock is owned by hedge funds and other institutional investors.

Ulta Beauty News Roundup

Here are the key news stories impacting Ulta Beauty this week:

• Positive Sentiment: Potential same-store sales beat: Deutsche Bank expects Ulta’s fiscal second-quarter comparable-sales growth to exceed market expectations. Strong traffic, demand for beauty products and resilient consumer spending could support revenue and earnings. Ulta Beauty Second-Quarter Same-Store Sales Poised for Beat
• Positive Sentiment: Wall Street remains broadly optimistic: Analysts continue to show a favorable outlook for ULTA despite its weaker performance versus the broader market over the past year. The upbeat target-price commentary may help support investor confidence ahead of results. What Are Wall Street Analysts' Target Price for Ulta Beauty Stock?
• Positive Sentiment: New brand partnership: Ulta is expanding its assortment through a nationwide U.S. agreement with Chinese beauty brand Proya, potentially adding product innovation and international growth to its sales mix. Proya Steps Up Overseas Expansion Through Agreement With Ulta Beauty
• Neutral Sentiment: Earnings are the next major catalyst: Analysts are focused on comparable sales, margins, customer trends and updated guidance in Thursday’s fiscal second-quarter report. Ulta’s latest reported quarter already exceeded consensus EPS and revenue estimates, raising expectations for another solid performance. Ulta Beauty Q2 2026 Earnings Preview
• Negative Sentiment: Target is becoming a more direct competitor: Following its separation from Ulta, Target plans to introduce upscale beauty studios in stores and expand its selection to more than 90 prestige brands across over 600 locations. This could increase pressure on Ulta’s traffic, market share and brand exclusivity over time. Target Unveils New Beauty Spaces

Insider Buying and Selling

In other Ulta Beauty news, Director George R. Mrkonic, Jr. sold 383 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $475.84, for a total value of $182,246.72. Following the transaction, the director directly owned 2,404 shares of the company's stock, valued at $1,143,919.36. This represents a 13.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.20% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on ULTA. JPMorgan Chase & Co. lowered their price target on Ulta Beauty from $750.00 to $631.00 and set an "overweight" rating on the stock in a report on Wednesday, June 3rd. Weiss Ratings downgraded Ulta Beauty from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, June 3rd. Citigroup decreased their price objective on Ulta Beauty from $600.00 to $560.00 and set a "neutral" rating for the company in a research report on Thursday, June 4th. William Blair reaffirmed a "market perform" rating on shares of Ulta Beauty in a research note on Friday, August 21st. Finally, UBS Group reiterated a "buy" rating on shares of Ulta Beauty in a report on Monday. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $636.41.

Ulta Beauty Stock Up 1.1%

Shares of NASDAQ:ULTA opened at $543.19 on Thursday. The firm has a fifty day moving average of $494.65 and a two-hundred day moving average of $535.92. Ulta Beauty Inc. has a 12-month low of $443.60 and a 12-month high of $714.97. The firm has a market capitalization of $23.35 billion, a P/E ratio of 20.37, a price-to-earnings-growth ratio of 1.67 and a beta of 0.87.

Ulta Beauty (NASDAQ:ULTA - Get Free Report) last posted its quarterly earnings results on Tuesday, June 2nd. The specialty retailer reported $7.74 earnings per share for the quarter, topping analysts' consensus estimates of $6.89 by $0.85. Ulta Beauty had a net margin of 9.36% and a return on equity of 44.77%. The business had revenue of $3.16 billion for the quarter, compared to the consensus estimate of $3.12 billion. During the same period in the prior year, the business posted $6.70 earnings per share. Ulta Beauty's revenue for the quarter was up 11.1% compared to the same quarter last year. Ulta Beauty has set its FY 2026 guidance at 28.360-28.800 EPS. Equities research analysts expect that Ulta Beauty Inc. will post 28.76 earnings per share for the current fiscal year.

Ulta Beauty Company Profile

Ulta Beauty, Inc NASDAQ: ULTA is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.

The retailer's product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.

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