Ulta Beauty (NASDAQ:ULTA) Trading Up 5.1% - Time to Buy?

Key Points

• Ulta Beauty shares rose 5.1% to about $518.44, though trading volume was 87% below the average. The stock remains below its 200-day moving average of $542.34.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $638.09, despite some recent target reductions and a Weiss Ratings downgrade to “hold.”
• Ulta exceeded quarterly expectations, reporting $7.74 in EPS versus the $6.89 consensus and $3.16 billion in revenue, up 11.1% year over year. Institutional investors own 90.39% of the company, while insider ownership is only 0.20%.

Ulta Beauty Inc. (NASDAQ:ULTA - Get Free Report) shares were up 5.1% during trading on Tuesday . The company traded as high as $519.84 and last traded at $518.4380. 91,228 shares were traded during trading, a decline of 87% from the average daily volume of 690,416 shares. The stock had previously closed at $493.33.

Analysts Set New Price Targets

A number of brokerages recently issued reports on ULTA. Weiss Ratings downgraded Ulta Beauty from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, June 3rd. Evercore set a $635.00 target price on Ulta Beauty in a research note on Wednesday, June 3rd. Wedbush initiated coverage on Ulta Beauty in a report on Monday, April 20th. They issued an "outperform" rating on the stock. Loop Capital reiterated a "hold" rating and set a $550.00 price target on shares of Ulta Beauty in a research report on Wednesday, June 3rd. Finally, Barclays dropped their price target on Ulta Beauty from $712.00 to $647.00 and set an "overweight" rating for the company in a research report on Wednesday, June 3rd. One investment 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 given a Sell rating to the stock. According to MarketBeat, Ulta Beauty has a consensus rating of "Moderate Buy" and a consensus target price of $638.09.

Ulta Beauty Price Performance

The company has a 50 day simple moving average of $486.22 and a 200-day simple moving average of $542.34. The stock has a market cap of $22.46 billion, a P/E ratio of 19.58, a price-to-earnings-growth ratio of 1.59 and a beta of 0.87.

Ulta Beauty (NASDAQ:ULTA - Get Free Report) last announced its quarterly earnings data on Tuesday, June 2nd. The specialty retailer reported $7.74 EPS for the quarter, beating the consensus estimate of $6.89 by $0.85. The firm had revenue of $3.16 billion for the quarter, compared to analyst estimates of $3.12 billion. Ulta Beauty had a return on equity of 44.77% and a net margin of 9.36%.The company's revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the company earned $6.70 EPS. Ulta Beauty has set its FY 2026 guidance at 28.360-28.800 EPS. As a group, research analysts expect that Ulta Beauty Inc. will post 28.78 earnings per share for the current year.

Insider Buying and Selling

In other Ulta Beauty news, Director George R. Mrkonic, Jr. sold 383 shares of Ulta Beauty stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $475.84, for a total transaction of $182,246.72. Following the transaction, the director directly owned 2,404 shares of the company's stock, valued at approximately $1,143,919.36. This trade represents a 13.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Ulta Beauty

A number of institutional investors have recently made changes to their positions in the business. Norges Bank purchased a new stake in shares of Ulta Beauty during the fourth quarter valued at approximately $430,963,000. Atria Investments Inc grew its holdings in shares of Ulta Beauty by 42.7% in the fourth quarter. Atria Investments Inc now owns 6,996 shares of the specialty retailer's stock worth $4,233,000 after purchasing an additional 2,093 shares during the last quarter. Janney Montgomery Scott LLC increased its stake in shares of Ulta Beauty by 97.3% in the first quarter. Janney Montgomery Scott LLC now owns 35,739 shares of the specialty retailer's stock worth $18,681,000 after buying an additional 17,625 shares during the period. National Pension Service increased its stake in shares of Ulta Beauty by 2,704.0% in the fourth quarter. National Pension Service now owns 79,465 shares of the specialty retailer's stock worth $48,077,000 after buying an additional 76,631 shares during the period. Finally, Oxbow Advisors LLC bought a new stake in Ulta Beauty during the 1st quarter valued at $3,024,000. Hedge funds and other institutional investors own 90.39% of the company's stock.

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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