The Estee Lauder Companies Inc. (NYSE:EL) finished Thursday with an addition of $3.75 to close at $169.94, an upside of 2.26 percent. An average of 2,499,360 shares of common stock have been traded in the last five days. There was a fall of -$1.90 in the past week, and it reached a new high 5 times over the past 12 months. The last 20 days have seen an average of 2,873,000 shares traded, while the 50-day average volume stands at 2,509,930.
EL stock has decreased by -11.04% in the last month. The company shares reached their 1-month lowest point of $165.59 on 08/09/23. With the stock rallying to its 52-week high on 02/02/23, shares of the company touched a low of $165.59 and a high of $284.45 in 52 weeks. It has reached a new high 9 times so far this year and lost -31.51% or -$78.17 in price. In spite of this, the price is down -40.26% from the 52-week high.
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Insider Transactions
EL stock investors should be aware that The Estee Lauder Companies Inc. (EL) stock had its last reported insider trading activity 87 days ago on May 16. In this transaction, the insider spent $1,973,297. Executive Group President, Hertzmark Hudis Jane, disposed of 43,311 shares at a price of $202.09 on May 11. The insider now owns more than $8,752,853 worth of shares. Prior to that, EVP Research Prod & Innovation Haney Carl P. went on to Sale 9,741 shares at $253.90 each on Feb 13. An amount of $2,473,240 was transacted.
Valuation Metrics
The Estee Lauder Companies Inc. (EL) has a trailing price-to-earnings (P/E) ratio of 56.23. The stock’s beta is 1.03. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.85, the price-to-book (PB) ratio at 10.35, and the price-to-cash flow ratio at 427.68.
The company has a payout ratio of 82.70%. The company’s most recent quarterly dividend payment was $0.66 a share, without any change from last year. Its latest increase dividend $0.06 reported on Wednesday November 2 2022.
Financial Health
The quick ratio of The Estee Lauder Companies Inc. for the three months ended March 30 was 1.10, and the current ratio was 1.50, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.87 and a total debt to equity ratio of 1.25 for the quarter ending March 30. The Estee Lauder Companies Inc.’s EBITDA margin for the year ending March 30 is 24.24%, while its operating margin for the same period stands at 10.00%. Its gross profit as reported stood at $13.43 billion compared to revenue of $17.74 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, The Estee Lauder Companies Inc.’s return on assets was 5.20%.
Earnings Surprise
For the three-month period that ended March 30, The Estee Lauder Companies Inc. had $5.13 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $156.0 million in the quarter, while revenues were shrunk -257.69%. The analyst consensus anticipated The Estee Lauder Companies Inc.’s latest quarter earnings to come in at $0.51 per share, but it turned out to be $0.47, a -7.80% surprise. For the quarter, EBITDA amounted to $486.0 million. Shareholders own equity worth $357.41 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at The Estee Lauder Companies Inc. (EL) price momentum. RSI 9-day as of the close on 10 August was 35.88%, suggesting the stock is Neutral, with historical volatility in this time frame at 19.39%.
As of today, EL’s price is $169.02 -1.11% or -$1.90 from its 5-day moving average. EL is currently trading -12.07% lower than its 20-day SMA and -27.55% lower than its 100-day SMA. However, the stock’s current price level is -11.45% below the SMA50 and -15.79% below the SMA200.
The stochastic %K and %D were 12.46% and 7.84%, respectively, and the average true range (ATR) was 4.63. With the 14-day stochastic at 24.70% and the average true range at 4.66, the RSI (14) stands at 35.76%. The stock has reached -3.52 on the 9-day MACD Oscillator while the 14-day reading was at -5.61.
Analyst Ratings
Citigroup downgraded The Estee Lauder Companies Inc. (NYSE: EL) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for The Estee Lauder Companies Inc. (EL) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell EL, while 13 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 14 others rate it as a “buy”.
What is EL’s price target for the next 12 months?
Analysts predict a range of price targets between $160.00 and $265.00, with a median target of $215.00. Taking a look at these predictions, the average price target given by analysts for The Estee Lauder Companies Inc. (EL) stock is $220.23.
