StockNews.com Downgrades Ulta Beauty (NASDAQ:ULTA) to Sell

Ulta Beauty (NASDAQ:ULTAGet Free Report) was downgraded by research analysts at StockNews.com from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday.

ULTA has been the subject of a number of other reports. Jefferies Financial Group dropped their price target on Ulta Beauty from $438.00 to $412.00 and set a “hold” rating for the company in a research report on Friday, May 24th. Robert W. Baird decreased their target price on shares of Ulta Beauty from $625.00 to $525.00 and set an “outperform” rating on the stock in a report on Wednesday, May 29th. Bank of America cut their price target on shares of Ulta Beauty from $575.00 to $425.00 and set a “neutral” rating for the company in a report on Tuesday, May 28th. BMO Capital Markets decreased their price objective on Ulta Beauty from $540.00 to $500.00 and set a “market perform” rating on the stock in a report on Friday, May 31st. Finally, Stifel Nicolaus cut their target price on Ulta Beauty from $565.00 to $475.00 and set a “hold” rating for the company in a research note on Tuesday, May 14th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $503.87.

Check Out Our Latest Research Report on ULTA

Ulta Beauty Stock Performance

Ulta Beauty stock traded up $0.02 during trading on Wednesday, reaching $396.03. The company had a trading volume of 630,146 shares, compared to its average volume of 807,454. Ulta Beauty has a 1-year low of $368.02 and a 1-year high of $574.76. The firm’s 50-day simple moving average is $389.53 and its 200 day simple moving average is $457.69. The firm has a market capitalization of $18.90 billion, a PE ratio of 15.45, a price-to-earnings-growth ratio of 1.72 and a beta of 1.37.

Ulta Beauty (NASDAQ:ULTAGet Free Report) last issued its quarterly earnings results on Thursday, May 30th. The specialty retailer reported $6.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.19 by $0.28. The firm had revenue of $2.73 billion for the quarter, compared to analyst estimates of $2.72 billion. Ulta Beauty had a return on equity of 58.06% and a net margin of 11.13%. The business’s revenue was up 3.5% on a year-over-year basis. During the same period in the previous year, the company posted $6.88 earnings per share. Analysts anticipate that Ulta Beauty will post 25.76 EPS for the current year.

Ulta Beauty declared that its Board of Directors has initiated a share repurchase program on Thursday, March 14th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the specialty retailer to reacquire up to 7.3% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In other Ulta Beauty news, Director Catherine Ann Halligan sold 100 shares of the firm’s stock in a transaction on Tuesday, July 2nd. The stock was sold at an average price of $390.08, for a total value of $39,008.00. Following the sale, the director now directly owns 2,017 shares in the company, valued at $786,791.36. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. In other Ulta Beauty news, Director Catherine Ann Halligan sold 100 shares of the firm’s stock in a transaction that occurred on Tuesday, July 2nd. The shares were sold at an average price of $390.08, for a total transaction of $39,008.00. Following the sale, the director now owns 2,017 shares of the company’s stock, valued at $786,791.36. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Jodi J. Caro sold 650 shares of the company’s stock in a transaction on Tuesday, June 25th. The shares were sold at an average price of $388.68, for a total transaction of $252,642.00. Following the completion of the transaction, the insider now owns 6,801 shares of the company’s stock, valued at approximately $2,643,412.68. The disclosure for this sale can be found here. 0.39% of the stock is currently owned by company insiders.

Institutional Trading of Ulta Beauty

Large investors have recently made changes to their positions in the company. Diversified Trust Co grew its position in shares of Ulta Beauty by 5.1% during the third quarter. Diversified Trust Co now owns 1,886 shares of the specialty retailer’s stock worth $753,000 after acquiring an additional 91 shares during the last quarter. Comerica Bank raised its holdings in shares of Ulta Beauty by 574.7% in the third quarter. Comerica Bank now owns 13,763 shares of the specialty retailer’s stock valued at $5,498,000 after buying an additional 11,723 shares during the last quarter. Public Sector Pension Investment Board raised its holdings in shares of Ulta Beauty by 11.2% in the third quarter. Public Sector Pension Investment Board now owns 5,334 shares of the specialty retailer’s stock valued at $2,131,000 after buying an additional 537 shares during the last quarter. Bar Harbor Wealth Management boosted its stake in shares of Ulta Beauty by 58.4% during the third quarter. Bar Harbor Wealth Management now owns 2,495 shares of the specialty retailer’s stock worth $997,000 after buying an additional 920 shares during the period. Finally, Raleigh Capital Management Inc. grew its holdings in shares of Ulta Beauty by 4.3% during the third quarter. Raleigh Capital Management Inc. now owns 535 shares of the specialty retailer’s stock worth $214,000 after buying an additional 22 shares during the last quarter. 90.39% of the stock is owned by institutional investors and hedge funds.

About Ulta Beauty

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Ulta Beauty, Inc operates as a specialty beauty retailer in the United States. The company offers branded and private label beauty products, including cosmetics, fragrance, haircare, skincare, bath and body products, professional hair products, and salon styling tools through its Ulta Beauty stores, shop-in-shops, Ulta.com website, and its mobile applications.

Further Reading

Analyst Recommendations for Ulta Beauty (NASDAQ:ULTA)

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