Helen of Troy (NASDAQ:HELE) Shares Gap Down - Should You Sell?

Key Points

• Helen of Troy beat expectations in its latest quarter, reporting adjusted EPS of $0.17 versus a small loss expected and revenue of $402.1 million, also above estimates. Revenue rose 8.2% year over year.
• Management raised full-year revenue guidance and said the results reflect early progress in its multi-year restructuring plan, which could support future margin recovery and earnings stability.
• The stock still faces headwinds, including a class-action lawsuit and mixed analyst sentiment; the shares gapped down and the consensus rating remains “Hold” with a $24 average price target.

Helen of Troy Limited (NASDAQ:HELE - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $28.04, but opened at $26.69. Helen of Troy shares last traded at $25.6310, with a volume of 463,655 shares traded.

Key Headlines Impacting Helen of Troy

Here are the key news stories impacting Helen of Troy this week:

• Positive Sentiment: Helen of Troy posted adjusted EPS of $0.17 versus the consensus call for a small loss, a sharp earnings beat that signals better-than-expected profitability in the quarter. Helen of Troy reports surprise profit, raises revenue outlook
• Positive Sentiment: Revenue came in at $402.1 million, ahead of estimates, and management raised full-year revenue guidance, reinforcing confidence in improved demand and execution. Helen of Troy Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: The company said the quarter reflects early progress in its multi-year restructuring plan, which could support margin recovery and a more stable earnings profile going forward.
• Neutral Sentiment: Several market headlines highlighted the earnings surprise and the stock’s pre-market strength, but they mainly echoed the same catalyst rather than adding new information. Helen of Troy (HELE) Q1 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: Broker commentary was mixed, with at least one downgrade and a hold rating/unchanged target, which may temper enthusiasm but does not outweigh the earnings-driven upside.
• Negative Sentiment: The company also remains under pressure from a recently filed class-action lawsuit, which is a lingering legal overhang for investors.

Analysts Set New Price Targets

Several research analysts have weighed in on HELE shares. Canaccord Genuity Group boosted their price target on Helen of Troy from $18.00 to $23.00 and gave the company a "hold" rating in a report on Friday, April 24th. UBS Group lifted their price objective on Helen of Troy from $16.00 to $25.00 and gave the company a "neutral" rating in a research report on Friday, April 24th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Helen of Troy in a research report on Wednesday, June 24th. Wall Street Zen lowered Helen of Troy from a "buy" rating to a "hold" rating in a research note on Saturday, May 23rd. Finally, Zacks Research downgraded shares of Helen of Troy from a "strong-buy" rating to a "hold" rating in a research note on Monday. One analyst has rated the stock with a Strong Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Helen of Troy has an average rating of "Hold" and a consensus target price of $24.00.

Helen of Troy Stock Down 4.2%

The firm has a market capitalization of $625.78 million, a PE ratio of -0.69 and a beta of 1.31. The company has a current ratio of 1.71, a quick ratio of 0.81 and a debt-to-equity ratio of 0.95. The firm has a 50-day moving average of $26.12 and a two-hundred day moving average of $20.82.

Helen of Troy (NASDAQ:HELE - Get Free Report) last announced its quarterly earnings results on Wednesday, July 8th. The company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.02 by $0.15. The company had revenue of $402.12 million during the quarter, compared to analyst estimates of $374.55 million. Helen of Troy had a positive return on equity of 7.00% and a negative net margin of 50.33%.The firm's revenue was up 8.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.41 earnings per share. Helen of Troy has set its FY 2027 guidance at 3.250-3.750 EPS. On average, equities research analysts forecast that Helen of Troy Limited will post 2.81 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada lifted its position in shares of Helen of Troy by 60.2% during the first quarter. Royal Bank of Canada now owns 7,102 shares of the company's stock worth $380,000 after purchasing an additional 2,670 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Helen of Troy by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,533 shares of the company's stock worth $724,000 after acquiring an additional 563 shares during the last quarter. Millennium Management LLC bought a new stake in shares of Helen of Troy in the first quarter worth $14,013,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Helen of Troy by 16.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 74,309 shares of the company's stock worth $3,975,000 after purchasing an additional 10,397 shares during the last quarter. Finally, American Century Companies Inc. raised its stake in Helen of Troy by 4.6% during the second quarter. American Century Companies Inc. now owns 57,265 shares of the company's stock valued at $1,625,000 after buying an additional 2,503 shares in the last quarter.

Helen of Troy Company Profile

Helen of Troy Limited is a global consumer products company that designs, sources and markets a diversified portfolio of household, health and beauty brands. Headquartered in El Paso, Texas, the company operates through three principal segments—Health & Home, Housewares and Beauty—offering products under well-known names including OXO, Vicks, Braun, Honeywell Home, PUR and Hot Tools. Helen of Troy distributes its products through a combination of mass, specialty and e-commerce channels to consumers, retailers and distributors worldwide.

The Housewares segment features kitchen tools, gadgets and organizational solutions marketed primarily under the OXO brand, recognized for its ergonomic “Good Grips” design.

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