Estee Lauder Cos., Inc. (NYSE: EL)’s stock price has gone decline by -2.12 in comparison to its previous close of 132.94, however, the company has experienced a -11.35% decrease in its stock price over the last five trading days. InvestorPlace reported 2024-05-02 that There’s more than one path to wealth for investors willing to hang on through occasional volatility hailstorms. Undoubtedly, April brought a slight dip that many value-focused investors may have been waiting for.
Is It Worth Investing in Estee Lauder Cos., Inc. (NYSE: EL) Right Now?
The price-to-earnings ratio for Estee Lauder Cos., Inc. (NYSE: EL) is above average at 73.19x. The 36-month beta value for EL is also noteworthy at 1.07. There are mixed opinions on the stock, with 12 analysts rating it as a “buy,” 7 rating it as “overweight,” 5 rating it as “hold,” and 0 rating it as “sell.”
The public float for EL is 231.92M, and at present, short sellers hold a 1.98% of that float. The average trading volume of EL on May 06, 2024 was 2.76M shares.
EL’s Market Performance
EL stock saw a decrease of -11.35% in the past week, with a monthly decline of -9.90% and a quarterly a decrease of -13.41%. The volatility ratio for the week is 5.35%, and the volatility levels for the last 30 days are 3.31% for Estee Lauder Cos., Inc. (EL). The simple moving average for the past 20 days is -8.67% for EL’s stock, with a -9.61% simple moving average for the past 200 days.
Analysts’ Opinion of EL
Many brokerage firms have already submitted their reports for EL stocks, with Morgan Stanley repeating the rating for EL by listing it as a “Equal-Weight.” The predicted price for EL in the upcoming period, according to Morgan Stanley is $140 based on the research report published on May 03, 2024 of the current year 2024.
Telsey Advisory Group, on the other hand, stated in their research note that they expect to see EL reach a price target of $142, previously predicting the price at $155. The rating they have provided for EL stocks is “Market Perform” according to the report published on May 02nd, 2024.
Citigroup gave a rating of “Buy” to EL, setting the target price at $175 in the report published on April 02nd of the current year.
EL Trading at -10.76% 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 -37.93% of loss for the given period.
Volatility was left at 3.31%, however, over the last 30 days, the volatility rate increased by 5.35%, as shares sank -10.64% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -13.35% lower at present.
During the last 5 trading sessions, EL fell by -11.47%, which changed the moving average for the period of 200-days by -28.70% in comparison to the 20-day moving average, which settled at $141.70. In addition, Estee Lauder Cos., Inc. saw -11.03% 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:
- 0.08 for the present operating margin
- 0.71 for the gross margin
The net margin for Estee Lauder Cos., Inc. stands at 0.04. The total capital return value is set at 0.07. Equity return is now at value 11.03, with 2.82 for asset returns.
Based on Estee Lauder Cos., Inc. (EL), the company’s capital structure generated 0.63 points at debt to capital in total, while cash flow to debt ratio is standing at 0.22. The debt to equity ratio resting at 1.71. The interest coverage ratio of the stock is 2.81.
Currently, EBITDA for the company is 2.66 billion with net debt to EBITDA at 2.76. When we switch over and look at the enterprise to sales, we see a ratio of 3.45. The receivables turnover for the company is 8.27for trailing twelve months and the total asset turnover is 0.68. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.58.
Conclusion
In summary, Estee Lauder Cos., Inc. (EL) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing 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.
