The stock price of Estee Lauder Cos., Inc. (NYSE: EL) has plunged by -0.23 when compared to previous closing price of 137.24, but the company has seen a -7.82% decline in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-05 that Estee Lauder (EL) is on track to operationalize the Profit Recovery Plan to focus on rebuilding stronger and more sustainable profitability alongside supporting sales growth.
Is It Worth Investing in Estee Lauder Cos., Inc. (NYSE: EL) Right Now?
Estee Lauder Cos., Inc. (NYSE: EL) has a price-to-earnings ratio that is above its average at 105.72x. The stock has a 36-month beta value of 1.09. Opinions on the stock are mixed, with 12 analysts rating it as a “buy,” 7 as “overweight,” 5 as “hold,” and 0 as “sell.”
The public float for EL is 231.93M, and at present, short sellers hold a 2.26% of that float. On April 17, 2024, the average trading volume of EL was 2.74M shares.
EL’s Market Performance
EL’s stock has seen a -7.82% decrease for the week, with a -8.56% drop in the past month and a 5.53% gain in the past quarter. The volatility ratio for the week is 2.96%, and the volatility levels for the past 30 days are at 2.87% for Estee Lauder Cos., Inc. The simple moving average for the past 20 days is -5.83% for EL’s stock, with a -7.19% simple moving average for the past 200 days.
Analysts’ Opinion of EL
Many brokerage firms have already submitted their reports for EL stocks, with Citigroup repeating the rating for EL by listing it as a “Buy.” The predicted price for EL in the upcoming period, according to Citigroup is $175 based on the research report published on April 02, 2024 of the current year 2024.
BofA Securities, on the other hand, stated in their research note that they expect to see EL reach a price target of $170. The rating they have provided for EL stocks is “Buy” according to the report published on March 28th, 2024.
Goldman gave a rating of “Neutral” to EL, setting the target price at $145 in the report published on March 01st of the current year.
EL Trading at -6.49% from the 50-Day Moving Average
After a stumble in the market that brought EL to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -47.43% of loss for the given period.
Volatility was left at 2.87%, however, over the last 30 days, the volatility rate increased by 2.96%, as shares sank -7.37% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +2.10% upper at present.
During the last 5 trading sessions, EL fell by -7.82%, which changed the moving average for the period of 200-days by -28.88% in comparison to the 20-day moving average, which settled at $144.87. In addition, Estee Lauder Cos., Inc. saw -6.37% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at EL starting from Hyman Jennifer, who purchase 1,350 shares at the price of $146.70 back on Feb 07 ’24. After this action, Hyman Jennifer now owns 2,350 shares of Estee Lauder Cos., Inc., valued at $198,045 using the latest closing price.
Stanley Deirdre, the EVP & General Counsel of Estee Lauder Cos., Inc., sale 4,343 shares at $147.00 during a trade that took place back on Feb 07 ’24, which means that Stanley Deirdre is holding 13,025 shares at $638,421 based on the most recent closing price.
Stock Fundamentals for EL
Current profitability levels for the company are sitting at:
- 0.07 for the present operating margin
- 0.7 for the gross margin
The net margin for Estee Lauder Cos., Inc. stands at 0.03. The total capital return value is set at 0.06. Equity return is now at value 8.04, with 2.12 for asset returns.
Based on Estee Lauder Cos., Inc. (EL), the company’s capital structure generated 0.6 points at debt to capital in total, while cash flow to debt ratio is standing at 0.23. The debt to equity ratio resting at 1.49. The interest coverage ratio of the stock is 2.47.
Currently, EBITDA for the company is 2.66 billion with net debt to EBITDA at 3.2. When we switch over and look at the enterprise to sales, we see a ratio of 3.65. The receivables turnover for the company is 8.64for trailing twelve months and the total asset turnover is 0.65. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.36.
Conclusion
To sum up, Estee Lauder Cos., Inc. (EL) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
