The Estee Lauder Companies Inc. $EL Shares Purchased by California State Teachers Retirement System

Key Points

• California State Teachers Retirement System dramatically increased its Estee Lauder stake by 6,993.9% in the second quarter, acquiring 27.05 million additional shares and ending with a 7.58% ownership position valued at approximately $2.17 billion.
• Estee Lauder exceeded quarterly expectations, reporting $0.39 EPS versus $0.32 expected and $3.64 billion in revenue, up 6.3% year over year. The company also declared a $0.35 quarterly dividend, though its annualized payout ratio remains high at 285.71%.
• Analysts maintain a broadly cautious view, with the stock carrying a consensus “Hold” rating and an average price target of $104.67, while company insiders sold 17,105 shares worth about $1.73 million over the past three months.

California State Teachers Retirement System boosted its holdings in The Estee Lauder Companies Inc. (NYSE:EL - Free Report) by 6,993.9% during the second quarter, according to its most recent Form 13F filing with the SEC. The fund owned 27,438,678 shares of the company's stock after acquiring an additional 27,051,883 shares during the period. California State Teachers Retirement System owned 7.58% of Estee Lauder Companies worth $2,166,284,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. REAP Financial Group LLC acquired a new position in shares of Estee Lauder Companies during the fourth quarter worth about $27,000. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna acquired a new position in shares of Estee Lauder Companies during the fourth quarter worth $27,000. Trust Co. of Vermont acquired a new position in shares of Estee Lauder Companies during the second quarter worth $28,000. Kozak & Associates Inc. purchased a new position in Estee Lauder Companies in the second quarter valued at $30,000. Finally, DV Equities LLC acquired a new stake in Estee Lauder Companies in the fourth quarter valued at $36,000. Hedge funds and other institutional investors own 55.15% of the company's stock.

Estee Lauder Companies Price Performance

EL opened at $96.99 on Friday. The stock has a market capitalization of $35.09 billion, a PE ratio of 197.95, a P/E/G ratio of 1.12 and a beta of 1.28. The Estee Lauder Companies Inc. has a 1 year low of $66.22 and a 1 year high of $121.64. The company has a debt-to-equity ratio of 1.79, a quick ratio of 0.90 and a current ratio of 1.22. The company's 50 day simple moving average is $90.33 and its 200 day simple moving average is $85.95.

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

Estee Lauder Companies Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Monday, August 31st. Estee Lauder Companies's dividend payout ratio is 285.71%.

Insiders Place Their Bets

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

Wall Street Analyst Weigh In

Several brokerages have commented on EL. B. Riley Financial reiterated a "neutral" rating and issued a $100.00 price target (up from $85.00) on shares of Estee Lauder Companies in a research note on Thursday, August 20th. Wells Fargo & Company increased their price target on shares of Estee Lauder Companies from $85.00 to $104.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 20th. Royal Bank Of Canada reissued an "outperform" rating and issued a $111.00 target price on shares of Estee Lauder Companies in a report on Monday, August 17th. Jefferies Financial Group increased their price target on shares of Estee Lauder Companies from $88.00 to $100.00 and gave the stock a "hold" rating in a report on Thursday, August 20th. Finally, Morgan Stanley raised their price objective on shares of Estee Lauder Companies from $90.00 to $102.00 and gave the company an "equal weight" rating in a research note on Thursday, August 20th. Two analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Estee Lauder Companies presently has an average rating of "Hold" and a consensus target price of $104.67.

About Estee Lauder Companies

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.

Want to see what other hedge funds are holding EL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Estee Lauder Companies Inc. (NYSE:EL - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.