Ulta Beauty (NASDAQ:ULTA) Upgraded to “Strong-Buy” by Zacks Investment Research

Ulta Beauty (NASDAQ:ULTAGet Rating) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued on Thursday, Zacks.com reports. The brokerage currently has a $468.00 target price on the specialty retailer’s stock. Zacks Investment Research‘s price objective points to a potential upside of 14.47% from the stock’s current price.

According to Zacks, “Shares of Ulta Beauty have outpaced the industry in the past three months. The company has been benefiting from its omnichannel strength. Also, the skincare category has been gaining from consumers’ rising interest in self-care. These upsides aided first-quarter fiscal 2022 results, wherein the top and bottom lines grew year over year and beat the Zacks Consensus Estimate. Results were backed by the strong execution of the company’s strategies and solid guest demand, with the latter gaining from the company’s exciting brand launches. Also, increased in-person activities and travel have been leading to the revival of the beauty category demand. All major categories delivered double-digit comp sales growth. Encouragingly, management raised its fiscal 2022 view. However, it expects SG&A deleverage and a decline in the gross margin.”

Several other brokerages have also issued reports on ULTA. Barclays increased their price target on shares of Ulta Beauty from $469.00 to $491.00 and gave the stock an “overweight” rating in a research note on Tuesday. DA Davidson reduced their price objective on shares of Ulta Beauty from $500.00 to $450.00 in a research note on Friday, March 11th. StockNews.com upgraded shares of Ulta Beauty from a “hold” rating to a “buy” rating in a research note on Friday, May 27th. Jefferies Financial Group upgraded shares of Ulta Beauty from a “hold” rating to a “buy” rating and lifted their price target for the stock from $400.00 to $475.00 in a research note on Friday, May 27th. Finally, Oppenheimer lifted their price target on shares of Ulta Beauty from $470.00 to $485.00 and gave the stock an “outperform” rating in a research note on Friday, May 27th. Seven investment analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $456.55.

Ulta Beauty stock traded up $1.52 during midday trading on Thursday, reaching $408.84. 5,903 shares of the stock were exchanged, compared to its average volume of 1,018,615. The company’s fifty day moving average is $396.33 and its 200-day moving average is $387.43. The firm has a market cap of $21.19 billion, a PE ratio of 20.23, a PEG ratio of 2.01 and a beta of 1.53. Ulta Beauty has a 52 week low of $319.05 and a 52 week high of $438.63.

Ulta Beauty (NASDAQ:ULTAGet Rating) last issued its quarterly earnings results on Thursday, May 26th. The specialty retailer reported $6.30 EPS for the quarter, topping analysts’ consensus estimates of $4.46 by $1.84. The firm had revenue of $2.35 billion for the quarter, compared to analyst estimates of $2.12 billion. Ulta Beauty had a net margin of 12.03% and a return on equity of 60.83%. The business’s revenue for the quarter was up 21.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $4.10 EPS. As a group, analysts forecast that Ulta Beauty will post 19.81 EPS for the current year.

In other news, insider Jodi J. Caro sold 5,340 shares of Ulta Beauty stock in a transaction that occurred on Wednesday, March 16th. The shares were sold at an average price of $384.54, for a total transaction of $2,053,443.60. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Company insiders own 3.10% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Girard Partners LTD. increased its position in Ulta Beauty by 2.6% in the fourth quarter. Girard Partners LTD. now owns 12,729 shares of the specialty retailer’s stock worth $5,248,000 after purchasing an additional 322 shares during the last quarter. HighTower Advisors LLC increased its position in Ulta Beauty by 8.3% in the third quarter. HighTower Advisors LLC now owns 102,058 shares of the specialty retailer’s stock worth $36,862,000 after purchasing an additional 7,844 shares during the last quarter. Commonwealth Equity Services LLC increased its position in Ulta Beauty by 10.4% during the fourth quarter. Commonwealth Equity Services LLC now owns 19,060 shares of the specialty retailer’s stock valued at $7,859,000 after acquiring an additional 1,797 shares during the last quarter. New York State Teachers Retirement System increased its position in Ulta Beauty by 1.3% during the fourth quarter. New York State Teachers Retirement System now owns 59,966 shares of the specialty retailer’s stock valued at $24,726,000 after acquiring an additional 756 shares during the last quarter. Finally, Vestmark Advisory Solutions Inc. increased its position in Ulta Beauty by 17.4% during the fourth quarter. Vestmark Advisory Solutions Inc. now owns 6,497 shares of the specialty retailer’s stock valued at $2,679,000 after acquiring an additional 961 shares during the last quarter. Institutional investors own 89.20% of the company’s stock.

About Ulta Beauty (Get Rating)

Ulta Beauty, Inc operates as a retailer of beauty products in the United States. The company's stores offer cosmetics, fragrances, skincare and haircare products, bath and body products, and salon styling tools; professional hair products; salon services, including hair, skin, makeup, and brow services; and nail services.

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