Zacks Investment Research Lowers 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 report issued to clients and 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 have also weighed in on EL. Goldman Sachs Group Inc. restated a “neutral” rating and issued a $100.00 price objective (up from $98.00) on shares of Estee Lauder Companies in a report on Friday, July 15th. Vetr upgraded shares of Estee Lauder Companies from a “hold” rating to a “buy” rating and set a $94.06 price objective on the stock in a report on Tuesday, August 30th. Jefferies Group restated a “hold” rating and issued a $98.00 price objective on shares of Estee Lauder Companies in a report on Thursday, July 14th. Credit Agricole SA reiterated a “buy” rating and set a $110.00 price target on shares of Estee Lauder Companies in a research note on Friday. Finally, Argus lowered shares of Estee Lauder Companies from a “buy” rating to a “hold” rating in a research note on Friday, September 9th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. Estee Lauder Companies has a consensus rating of “Buy” and an average target price of C$100.97.
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Shares of Estee Lauder Companies (NYSE:EL) traded up 0.18% on Tuesday, hitting $87.54. 690,964 shares of the company’s stock were exchanged. Estee Lauder Companies has a 12-month low of $77.02 and a 12-month high of $97.48. The company’s 50-day moving average price is $90.94 and its 200 day moving average price is $92.64. The stock has a market cap of $32.01 billion, a price-to-earnings ratio of 29.57 and a beta of 0.95.
Estee Lauder Companies (NYSE:EL) last announced its quarterly earnings data on Friday, August 19th. The company reported $0.25 earnings per share for the quarter, missing the Zacks’ 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 earned $2.65 billion during the quarter. During the same quarter last year, the firm earned $0.40 EPS. The company’s quarterly revenue was up 5.0% on a year-over-year basis. On average, equities analysts predict that Estee Lauder Companies will post ($0.06) earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Wednesday, August 31st were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.37%. The ex-dividend date of this dividend was Monday, August 29th. Estee Lauder Companies’s dividend payout ratio (DPR) is 40.40%.
In other Estee Lauder Companies news, EVP Gregory Polcer sold 35,000 shares of Estee Lauder Companies stock in a transaction dated Thursday, June 23rd. The shares were sold at an average price of C$94.73, for a total transaction of C$3,315,550.00. Following the completion of the transaction, the executive vice president now owns 104,909 shares in the company, valued at C$9,938,029.57. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Charlene Barshefsky sold 2,216 shares of Estee Lauder Companies stock in a transaction dated Monday, August 22nd. The stock was sold at an average price of C$91.39, for a total transaction of C$202,520.24. Following the transaction, the director now owns 4,000 shares of the company’s stock, valued at approximately C$365,560. The disclosure for this sale can be found here. 16.87% of the stock is currently owned by corporate insiders.
Institutional investors have recently made changes to their positions in the company. Checchi Capital Advisers LLC boosted its position in shares of Estee Lauder Companies by 1.2% in the second quarter. Checchi Capital Advisers LLC now owns 2,188 shares of the company’s stock worth $199,000 after buying an additional 26 shares during the last quarter. Wetherby Asset Management Inc. raised its position in Estee Lauder Companies by 1.1% in the second quarter. Wetherby Asset Management Inc. now owns 2,903 shares of the company’s stock worth $264,000 after buying an additional 32 shares in the last quarter. Citizens Financial Group Inc RI raised its position in Estee Lauder Companies by 0.6% in the second quarter. Citizens Financial Group Inc RI now owns 7,588 shares of the company’s stock worth $691,000 after buying an additional 48 shares in the last quarter. Loomis Sayles & Co. L P raised its position in Estee Lauder Companies by 3.2% in the second quarter. Loomis Sayles & Co. L P now owns 1,723 shares of the company’s stock worth $157,000 after buying an additional 53 shares in the last quarter. Finally, Fulton Bank N.A. raised its position in Estee Lauder Companies by 0.6% in the second quarter. Fulton Bank N.A. now owns 11,597 shares of the company’s stock worth $1,055,000 after buying an additional 69 shares in the last quarter. Institutional investors own 55.60% of the company’s stock.
About Estee Lauder Companies
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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