Research analysts at JPMorgan Chase & Co. have reduced their price target for e.l.f. Beauty (NYSE: ELF) from $137.00 to $103.00. This adjustment was communicated to investors in a note released on Thursday. Despite the cut, JPMorgan maintains an “overweight” rating on the stock, suggesting a potential upside of 32.02% based on the company’s previous close.
Analysts from other firms have expressed varying opinions on e.l.f. Beauty’s stock. For instance, on October 20, 2023, Raymond James Financial increased their target price from $155.00 to $165.00, assigning a “strong buy” rating. Conversely, Zacks Research downgraded the company from a “hold” rating to a “strong sell” on November 11, 2023. Additionally, The Goldman Sachs Group revised their price objective down from $155.00 to $135.00, while maintaining a “buy” rating as of November 7, 2023. Bank of America increased its target price to $160.00 with a “buy” rating on September 17, 2023. Overall, one equity research analyst has rated the stock as a strong buy, ten have given it a buy rating, six have assigned a hold rating, and one has issued a sell rating.
As of now, e.l.f. Beauty holds a consensus rating of “Moderate Buy” and an average price target of $124.53, according to data from MarketBeat.
Recent Earnings and Insider Trading
e.l.f. Beauty released its quarterly earnings results on November 5, 2023. The company reported earnings of $0.68 per share, exceeding analyst expectations of $0.57 by $0.11. While the revenue for the quarter totaled $343.94 million, it fell short of analysts’ estimates of $367.89 million. The company experienced a year-over-year revenue growth of 14.2%, although it reported a decrease in earnings per share from $0.77 in the same quarter last year. For the fiscal year 2026, e.l.f. Beauty has set its earnings guidance at $2.800 to $2.850 per share.
In related news, CEO Tarang Amin sold 116,315 shares of the company’s stock on October 1, 2023, at an average price of $132.24. This transaction amounted to a total of approximately $15.4 million, resulting in a 58.71% reduction in his ownership stake, bringing his total shares owned to 81,818. Following this sale, the value of his remaining shares is approximately $10.8 million. The sale was disclosed in a filing with the Securities and Exchange Commission.
Institutional Investments in e.l.f. Beauty
Institutional interest in e.l.f. Beauty remains significant, with several hedge funds adjusting their positions in the company. EverSource Wealth Advisors LLC increased its stake by 97.0% in the second quarter, now holding 260 shares valued at approximately $32,000. Northwestern Mutual Wealth Management Co. raised its holdings by 58.5%, acquiring 317 shares valued at $39,000.
Moreover, Smartleaf Asset Management LLC expanded its position by an impressive 577.7% in the first quarter, owning 759 shares worth around $49,000 after acquiring an additional 647 shares. MAI Capital Management also increased its stake by 129.1%, now holding 394 shares valued at $49,000.
Currently, institutional investors control approximately 92.44% of e.l.f. Beauty’s stock. The company is recognized for its inclusive, accessible, clean, vegan, and cruelty-free cosmetics and skincare products, and markets brands such as elf, elf skin, WELL People, and KEYS soulcare.
