Ulta Beauty (NASDAQ:ULTA) Shares Gap Up Following Better-Than-Expected Earnings

Ulta Beauty, Inc. (NASDAQ:ULTA - Get Free Report)'s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $421.79, but opened at $468.16. Ulta Beauty shares last traded at $483.83, with a volume of 931,620 shares changing hands.

The specialty retailer reported $6.70 EPS for the quarter, topping analysts' consensus estimates of $5.73 by $0.97. Ulta Beauty had a net margin of 10.58% and a return on equity of 51.95%. The company had revenue of $2.85 billion during the quarter, compared to the consensus estimate of $2.79 billion. During the same period in the prior year, the business posted $6.47 EPS. The company's quarterly revenue was up 4.5% on a year-over-year basis.

Analyst Upgrades and Downgrades

ULTA has been the topic of several recent analyst reports. UBS Group boosted their price target on Ulta Beauty from $490.00 to $525.00 and gave the stock a "buy" rating in a research report on Friday. Telsey Advisory Group upped their price target on shares of Ulta Beauty from $460.00 to $520.00 and gave the company an "outperform" rating in a research note on Friday. DA Davidson upped their price target on shares of Ulta Beauty from $415.00 to $485.00 and gave the company a "buy" rating in a research note on Friday. Raymond James restated an "outperform" rating and set a $500.00 target price (up previously from $450.00) on shares of Ulta Beauty in a research report on Friday. Finally, Wells Fargo & Company increased their target price on shares of Ulta Beauty from $315.00 to $350.00 and gave the stock an "underweight" rating in a research report on Friday. One equities research analyst has rated the stock with a sell rating, twelve have given a hold rating and thirteen have assigned a buy rating to the stock. According to data from MarketBeat, Ulta Beauty currently has a consensus rating of "Hold" and an average target price of $454.04.

Insider Activity

In other news, insider Jodi J. Caro sold 902 shares of the firm's stock in a transaction on Tuesday, April 1st. The shares were sold at an average price of $369.16, for a total transaction of $332,982.32. Following the completion of the transaction, the insider now owns 7,632 shares of the company's stock, valued at approximately $2,817,429.12. This trade represents a 10.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.17% of the company's stock.

Institutional Investors Weigh In On Ulta Beauty

Several large investors have recently modified their holdings of ULTA. LaFleur & Godfrey LLC increased its position in shares of Ulta Beauty by 32.1% during the fourth quarter. LaFleur & Godfrey LLC now owns 2,455 shares of the specialty retailer's stock worth $1,068,000 after buying an additional 596 shares during the period. Blue Trust Inc. grew its holdings in Ulta Beauty by 18.8% in the fourth quarter. Blue Trust Inc. now owns 285 shares of the specialty retailer's stock worth $124,000 after purchasing an additional 45 shares during the period. Robeco Institutional Asset Management B.V. grew its holdings in Ulta Beauty by 2.2% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 8,548 shares of the specialty retailer's stock worth $3,718,000 after purchasing an additional 185 shares during the period. Mediolanum International Funds Ltd grew its holdings in Ulta Beauty by 11.2% in the fourth quarter. Mediolanum International Funds Ltd now owns 24,006 shares of the specialty retailer's stock worth $10,427,000 after purchasing an additional 2,423 shares during the period. Finally, Caprock Group LLC grew its holdings in Ulta Beauty by 7.1% in the fourth quarter. Caprock Group LLC now owns 4,654 shares of the specialty retailer's stock worth $2,024,000 after purchasing an additional 307 shares during the period. 90.39% of the stock is currently owned by institutional investors and hedge funds.

Ulta Beauty Price Performance

The firm has a market capitalization of $21.21 billion, a price-to-earnings ratio of 18.80, a PEG ratio of 0.89 and a beta of 1.06. The business's fifty day simple moving average is $384.70 and its 200 day simple moving average is $388.02.

Ulta Beauty Company Profile

Ulta Beauty, Inc operates as a specialty beauty retailer in the United States. The company offers branded and private label beauty products, including cosmetics, fragrance, haircare, skincare, bath and body products, professional hair products, and salon styling tools through its Ulta Beauty stores, shop-in-shops, Ulta.com website, and its mobile applications.