Zacks Investment Research Upgrades Estee Lauder Companies Inc. (EL) to “Hold”
Estee Lauder Companies Inc. (NYSE:EL) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Estimates have been revised upward since the last 7 days for the Estee Lauder stock. 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. slower retail growth in Hong Kong and China, a decline in spending by Russian and Brazilian travelers, the impact of the MERS virus on its travel retail business in Korea and unfavorable currency are expected to affect sales negatively. Hence the company remained cautious while providing its guidance for the year. “
Several other equities research analysts have also recently issued reports on the stock. Piper Jaffray Cos. cut shares of Estee Lauder Companies from an “overweight” rating to a “neutral” rating and set a $90.00 price objective for the company. in a research report on Thursday, October 13th. Credit Agricole SA reissued a “buy” rating and issued a $110.00 price objective on shares of Estee Lauder Companies in a research report on Friday, September 16th. Vetr raised shares of Estee Lauder Companies from a “buy” rating to a “strong-buy” rating and set a $99.53 price objective for the company in a research report on Monday, September 12th. Goldman Sachs Group Inc. began coverage on shares of Estee Lauder Companies in a research report on Sunday, September 11th. They issued a “buy” rating and a $105.00 price objective for the company. Finally, Argus cut shares of Estee Lauder Companies from a “buy” rating to a “hold” rating in a research report on Friday, September 9th. Seven equities research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of C$100.42.
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Shares of Estee Lauder Companies (NYSE:EL) traded down 0.32% during trading on Wednesday, hitting $87.39. 118,168 shares of the stock traded hands. Estee Lauder Companies has a 12 month low of $80.18 and a 12 month high of $97.48. The firm’s 50-day moving average price is $88.15 and its 200-day moving average price is $91.83. The stock has a market cap of $31.96 billion, a PE ratio of 29.52 and a beta of 0.91.
Estee Lauder Companies (NYSE:EL) last released its quarterly earnings results on Friday, August 19th. The company reported $0.25 EPS for the quarter, missing analysts’ consensus estimates of $0.40 by $0.15. Estee Lauder Companies had a return on equity of 33.20% and a net margin of 9.90%. The firm had revenue of $2.65 billion for the quarter. During the same period in the previous year, the company posted $0.40 earnings per share. The company’s revenue for the quarter was up 5.0% compared to the same quarter last year. Analysts anticipate that Estee Lauder Companies will post ($0.07) EPS for the current year.
In other news, Chairman Ronald S. Lauder sold 500,000 shares of the company’s stock in a transaction on Thursday, September 1st. The shares were sold at an average price of C$88.91, for a total value of C$44,455,000.00. Following the sale, the chairman now directly owns 608,500 shares of the company’s stock, valued at approximately C$54,101,735. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Gregory Polcer sold 15,000 shares of the company’s stock in a transaction on Thursday, August 18th. The shares were sold at an average price of C$95.00, for a total transaction of C$1,425,000.00. Following the completion of the sale, the executive vice president now directly owns 84,909 shares in the company, valued at C$8,066,355. The disclosure for this sale can be found here. 16.98% of the stock is currently owned by insiders.
Several hedge funds have recently added to or reduced their stakes in EL. Virginia Retirement System acquired a new stake in Estee Lauder Companies during the first quarter valued at approximately $340,000. Los Angeles Capital Management & Equity Research Inc. acquired a new stake in Estee Lauder Companies during the first quarter valued at approximately $207,000. Gardner Lewis Asset Management L P increased its stake in Estee Lauder Companies by 36.0% in the first quarter. Gardner Lewis Asset Management L P now owns 10,095 shares of the company’s stock valued at $952,000 after buying an additional 2,670 shares during the period. State Street Corp increased its stake in Estee Lauder Companies by 2.1% in the first quarter. State Street Corp now owns 8,895,393 shares of the company’s stock valued at $838,925,000 after buying an additional 186,295 shares during the period. Finally, Meeder Asset Management Inc. increased its stake in shares of Estee Lauder Companies by 699.8% in the first quarter. Meeder Asset Management Inc. now owns 12,796 shares of the company’s stock worth $1,207,000 after buying an additional 11,196 shares during the period. 55.38% of the stock is currently owned by institutional investors and hedge funds.
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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