Zacks Investment Research Downgrades Estee Lauder Companies Inc. (EL) to Sell
Estee Lauder Companies Inc. (NYSE:EL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
According to Zacks, “Estee Lauder Companies’ aggressive marketing investments and continued product innovation are encouraging. The company has been reporting higher top line and margins backed by its strategic initiatives. Going ahead, the company’s strategic initiatives to boost sales and the growing global beauty sector are expected to boost results. Though Estee Lauder expects growth opportunities in product categories in fiscal 2017, economic challenges will likely persist. Hence the company remained cautious while providing its guidance for the year.”
A number of other brokerages also recently issued reports on EL. Stifel Nicolaus reaffirmed a “buy” rating and set a $105.00 price target on shares of Estee Lauder Companies in a report on Friday, August 19th. Goldman Sachs Group Inc. reaffirmed a “neutral” rating and set a $100.00 price target (up previously from $98.00) on shares of Estee Lauder Companies in a report on Friday, July 15th. Jefferies Group reaffirmed a “hold” rating and set a $98.00 price target on shares of Estee Lauder Companies in a report on Thursday, July 14th. B. Riley reaffirmed a “neutral” rating and set a $86.00 price target on shares of Estee Lauder Companies in a report on Friday, June 3rd. Finally, Piper Jaffray Cos. reaffirmed an “overweight” rating and set a $100.00 price target on shares of Estee Lauder Companies in a report on Saturday, August 13th. One investment analyst has rated the stock with a sell rating, five have given a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the stock. The stock has an average rating of “Buy” and a consensus price target of C$100.97.
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Shares of Estee Lauder Companies (NYSE:EL) traded up 0.27% on Tuesday, hitting $87.62. 657,158 shares of the stock were exchanged. The company has a 50-day moving average price of $90.94 and a 200 day moving average price of $92.64. The company has a market cap of $32.04 billion, a PE ratio of 29.60 and a beta of 0.95. Estee Lauder Companies has a 12 month low of $77.02 and a 12 month high of $97.48.
Estee Lauder Companies (NYSE:EL) last announced its quarterly earnings data on Friday, August 19th. The company reported $0.25 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.40 by $0.15. Estee Lauder Companies had a net margin of 9.90% and a return on equity of 33.20%. The firm had revenue of $2.65 billion for the quarter. During the same quarter last year, the business earned $0.40 earnings per share. The business’s revenue was up 5.0% compared to the same quarter last year. Equities analysts forecast that Estee Lauder Companies will post ($0.06) EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Wednesday, August 31st were issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.37%. The ex-dividend date was Monday, August 29th. Estee Lauder Companies’s dividend payout ratio (DPR) is presently 40.40%.
In other Estee Lauder Companies news, Chairman Ronald S. Lauder sold 500,000 shares of Estee Lauder Companies stock in a transaction on Thursday, September 1st. The shares were sold at an average price of C$88.91, for a total transaction of C$44,455,000.00. Following the completion of the transaction, the chairman now directly owns 608,500 shares of the company’s stock, valued at C$54,101,735. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Gregory Polcer sold 15,000 shares of Estee Lauder Companies stock in a transaction on Thursday, August 18th. The stock was sold at an average price of C$95.00, for a total transaction of C$1,425,000.00. Following the transaction, the executive vice president now directly owns 84,909 shares of the company’s stock, valued at C$8,066,355. The disclosure for this sale can be found here. 16.87% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Evercore Wealth Management LLC raised its position in Estee Lauder Companies by 88.9% in the second quarter. Evercore Wealth Management LLC now owns 2,475 shares of the company’s stock valued at $225,000 after buying an additional 1,165 shares during the last quarter. Macquarie Group Ltd. raised its position in Estee Lauder Companies by 333.4% in the second quarter. Macquarie Group Ltd. now owns 15,170 shares of the company’s stock valued at $1,381,000 after buying an additional 11,670 shares during the last quarter. Williams Jones & Associates LLC purchased a new position in Estee Lauder Companies during the second quarter valued at approximately $583,000. Kentucky Retirement Systems Insurance Trust Fund purchased a new position in Estee Lauder Companies during the second quarter valued at approximately $818,000. Finally, Kentucky Retirement Systems purchased a new position in Estee Lauder Companies during the second quarter valued at approximately $1,723,000. 55.60% of the stock is owned by institutional investors.
Estee Lauder Companies Company Profile
The Estee Lauder Companies Inc, is a manufacturer and marketer of skin care, makeup, fragrance and hair care products. The Company’s products are sold in over 150 countries and territories under a number of brand names, including Estee Lauder, Aramis, Clinique, Origins, Le Labo, M.A.C, Bobbi Brown, La Mer and Aveda.
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