The Estee Lauder Companies (NYSE: EL) has seen its price target revised upward from $95.00 to $111.00 by Wells Fargo & Company, as detailed in a report released on October 30, 2023. The firm currently maintains an equal weight rating on the stock, indicating a balanced outlook on its performance.
Other financial analysts have also provided insights on Estee Lauder’s stock. The Goldman Sachs Group recently upgraded its rating from “neutral” to “buy,” boosting the price target from $76.00 to $115.00. This change reflects a more optimistic view on the company’s future potential. On the same day, JPMorgan Chase & Co. raised its price target from $114.00 to $116.00, assigning an “overweight” rating. Meanwhile, Royal Bank Of Canada increased its target from $107.00 to $113.00, maintaining an “outperform” rating.
In contrast, Wall Street Zen downgraded Estee Lauder from a “buy” rating to a “hold” rating in a note issued on November 22. Overall, analysts currently rate Estee Lauder with three Strong Buy ratings, ten Buy ratings, nine Hold ratings, and three Sell ratings. According to MarketBeat, the consensus rating is “Moderate Buy” with an average target price of $98.19.
Financial Performance and Earnings Report
Estee Lauder Companies reported its quarterly earnings on October 30, revealing earnings per share (EPS) of $0.32, surpassing analysts’ estimates of $0.15 by a notable margin of $0.17. The company generated revenue of $3.48 billion for the quarter, exceeding expectations of $3.38 billion. This marks a 3.6% increase in revenue compared to the same quarter last year.
The company has set its fiscal year 2026 guidance for EPS between $1.90 and $2.10. Currently, sell-side analysts project an average EPS of $1.36 for the current fiscal year.
Dividend Announcement and Insider Transactions
Estee Lauder also declared a quarterly dividend of $0.35 per share, paid on December 15 to stockholders of record as of November 28. This dividend represents an annualized payout of $1.40, yielding approximately 1.3%. The company’s dividend payout ratio stands at -54.26%.
In terms of insider trading, Director Barry S. Sternlicht sold 3,972 shares on November 11 at an average price of $91.83, totaling approximately $364,748.76. Following this transaction, Sternlicht holds 34,812 shares valued around $3.2 million, marking a 10.24% reduction in his position. Additionally, Vice President Meridith Webster sold 5,430 shares on November 18 at an average price of $87.84, accumulating about $476,971.20.
Institutional Investments and Ownership
Institutional investors have recently adjusted their stakes in Estee Lauder. Asset Dedication LLC increased its investment by 258.7%, acquiring 391 shares worth $32,000 after purchasing an additional 282 shares. Quent Capital LLC also bought a new position valued at approximately $33,000 during the third quarter.
Hantz Financial Services boosted its holdings by 80.6%, now owning 372 shares worth $33,000. Furthermore, TD Private Client Wealth LLC expanded its position by 246.4%, owning 478 shares valued at $39,000. Institutional investors and hedge funds collectively own 55.15% of Estee Lauder’s stock.
Founded in 1946 by Estee Lauder, the company has evolved into a leader in the prestige beauty sector, offering a diverse range of skincare, makeup, fragrance, and hair care products. Headquartered in New York City, Estee Lauder’s portfolio includes well-known brands such as Clinique, MAC, La Mer, and Jo Malone, targeting various consumer segments and price points.
