Ulta Beauty (NASDAQ:ULTA) Shares Gap Down Following Analyst Downgrade

Ulta Beauty, Inc. (NASDAQ:ULTAGet Free Report)’s share price gapped down before the market opened on Friday after TD Cowen lowered their price target on the stock from $580.00 to $520.00. The stock had previously closed at $425.11, but opened at $413.83. TD Cowen currently has a buy rating on the stock. Ulta Beauty shares last traded at $415.94, with a volume of 112,565 shares changing hands.

Several other research firms have also recently commented on ULTA. Barclays increased their price objective on Ulta Beauty from $583.00 to $612.00 and gave the company an “overweight” rating in a research report on Friday, March 15th. BMO Capital Markets increased their target price on Ulta Beauty from $485.00 to $540.00 and gave the company a “market perform” rating in a report on Friday, March 15th. JPMorgan Chase & Co. increased their target price on Ulta Beauty from $535.00 to $600.00 and gave the company an “overweight” rating in a report on Thursday, February 15th. Raymond James lowered their target price on Ulta Beauty from $630.00 to $610.00 and set a “strong-buy” rating on the stock in a report on Wednesday, April 3rd. Finally, DA Davidson reissued a “buy” rating and issued a $595.00 target price on shares of Ulta Beauty in a report on Friday, March 15th. One investment analyst has rated the stock with a sell rating, six have given a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $561.29.

Get Our Latest Stock Report on ULTA

Insider Transactions at Ulta Beauty

In related news, insider Anita Jane Ryan sold 3,102 shares of Ulta Beauty stock in a transaction that occurred on Tuesday, March 19th. The stock was sold at an average price of $525.25, for a total transaction of $1,629,325.50. Following the sale, the insider now owns 2,705 shares of the company’s stock, valued at approximately $1,420,801.25. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, COO Kecia Steelman sold 20,950 shares of Ulta Beauty stock in a transaction that occurred on Tuesday, March 19th. The stock was sold at an average price of $526.39, for a total transaction of $11,027,870.50. Following the sale, the chief operating officer now owns 10,494 shares of the company’s stock, valued at approximately $5,523,936.66. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Anita Jane Ryan sold 3,102 shares of the firm’s stock in a transaction that occurred on Tuesday, March 19th. The shares were sold at an average price of $525.25, for a total value of $1,629,325.50. Following the transaction, the insider now owns 2,705 shares of the company’s stock, valued at approximately $1,420,801.25. The disclosure for this sale can be found here. Insiders have sold 24,552 shares of company stock valued at $12,920,326 over the last quarter. 0.34% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Ulta Beauty

Several institutional investors have recently added to or reduced their stakes in ULTA. Prudential PLC purchased a new position in Ulta Beauty during the 1st quarter valued at approximately $425,000. Vanguard Group Inc. grew its holdings in Ulta Beauty by 0.7% during the 1st quarter. Vanguard Group Inc. now owns 5,886,434 shares of the specialty retailer’s stock valued at $2,344,096,000 after buying an additional 40,190 shares in the last quarter. Baird Financial Group Inc. grew its holdings in Ulta Beauty by 2.8% during the 1st quarter. Baird Financial Group Inc. now owns 8,299 shares of the specialty retailer’s stock valued at $3,305,000 after buying an additional 223 shares in the last quarter. Loomis Sayles & Co. L P boosted its holdings in shares of Ulta Beauty by 38.6% in the 1st quarter. Loomis Sayles & Co. L P now owns 1,117 shares of the specialty retailer’s stock worth $444,000 after purchasing an additional 311 shares during the period. Finally, Parkside Financial Bank & Trust boosted its holdings in shares of Ulta Beauty by 59.1% in the 1st quarter. Parkside Financial Bank & Trust now owns 70 shares of the specialty retailer’s stock worth $28,000 after purchasing an additional 26 shares during the period. Hedge funds and other institutional investors own 90.39% of the company’s stock.

Ulta Beauty Stock Performance

The stock has a market cap of $19.96 billion, a PE ratio of 15.87, a PEG ratio of 1.75 and a beta of 1.30. The stock has a fifty day moving average price of $511.83 and a 200 day moving average price of $468.13.

Ulta Beauty (NASDAQ:ULTAGet Free Report) last announced its earnings results on Thursday, March 14th. The specialty retailer reported $8.08 EPS for the quarter, topping analysts’ consensus estimates of $7.49 by $0.59. The firm had revenue of $3.55 billion during the quarter, compared to analysts’ expectations of $3.53 billion. Ulta Beauty had a return on equity of 61.64% and a net margin of 11.52%. The company’s quarterly revenue was up 10.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $6.68 EPS. As a group, equities analysts anticipate that Ulta Beauty, Inc. will post 26.74 earnings per share for the current fiscal year.

Ulta Beauty declared that its board has initiated a share buyback plan on Thursday, March 14th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the specialty retailer to buy up to 7.3% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s leadership believes its shares are undervalued.

Ulta Beauty Company Profile

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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.

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