The stock price of Ulta Beauty Inc (NASDAQ: ULTA) has jumped by 0.21 compared to previous close of 371.35. Despite this, the company has seen a fall of -2.31% in its stock price over the last five trading days. fool.com reported 2024-08-28 that A recent purchase of the retailer’s shares by Warren Buffett’s Berkshire Hathaway has attracted much attention. One pundit reduced his price target, but steadfastly maintained his bullish outlook on the stock.
Is It Worth Investing in Ulta Beauty Inc (NASDAQ: ULTA) Right Now?
Ulta Beauty Inc (NASDAQ: ULTA) has a price-to-earnings ratio of 14.51x that is above its average ratio. Additionally, the 36-month beta value for ULTA is 1.32. There are mixed opinions on the stock, with 8 analysts rating it as a “buy,” 4 rating it as “overweight,” 13 rating it as “hold,” and 0 rating it as “sell.”
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The public float for ULTA is 47.60M and currently, short sellers hold a 4.86% ratio of that float. The average trading volume of ULTA on August 28, 2024 was 1.07M shares.
ULTA’s Market Performance
ULTA’s stock has seen a -2.31% decrease for the week, with a 1.25% rise in the past month and a -1.63% fall in the past quarter. The volatility ratio for the week is 2.31%, and the volatility levels for the past 30 days are at 2.94% for Ulta Beauty Inc. The simple moving average for the past 20 days is 5.86% for ULTA’s stock, with a -15.55% simple moving average for the past 200 days.
Analysts’ Opinion of ULTA
Many brokerage firms have already submitted their reports for ULTA stocks, with Citigroup repeating the rating for ULTA by listing it as a “Neutral.” The predicted price for ULTA in the upcoming period, according to Citigroup is $375 based on the research report published on August 23, 2024 of the current year 2024.
Piper Sandler gave a rating of “Neutral” to ULTA, setting the target price at $404 in the report published on July 24th of the current year.
ULTA Trading at -0.33% from the 50-Day Moving Average
After a stumble in the market that brought ULTA to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -35.26% of loss for the given period.
Volatility was left at 2.94%, however, over the last 30 days, the volatility rate increased by 2.31%, as shares surge +2.47% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.92% lower at present.
During the last 5 trading sessions, ULTA fell by -1.84%, which changed the moving average for the period of 200-days by -3.84% in comparison to the 20-day moving average, which settled at $351.98. In addition, Ulta Beauty Inc saw -24.06% 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 ULTA starting from Halligan Catherine Ann, who sale 100 shares at the price of $390.08 back on Jul 02 ’24. After this action, Halligan Catherine Ann now owns 2,017 shares of Ulta Beauty Inc, valued at $39,008 using the latest closing price.
Caro Jodi J, the GC, Chief Risk & Compl. Ofc. of Ulta Beauty Inc, sale 650 shares at $388.68 during a trade that took place back on Jun 25 ’24, which means that Caro Jodi J is holding 6,801 shares at $252,639 based on the most recent closing price.
Stock Fundamentals for ULTA
Current profitability levels for the company are sitting at:
- 0.15 for the present operating margin
- 0.39 for the gross margin
The net margin for Ulta Beauty Inc stands at 0.11. The total capital return value is set at 0.4. Equity return is now at value 58.21, with 22.84 for asset returns.
Based on Ulta Beauty Inc (ULTA), the company’s capital structure generated 0.45 points at debt to capital in total, while cash flow to debt ratio is standing at 0.7. The debt to equity ratio resting at 0.82. The interest coverage ratio of the stock is -93.06.
Currently, EBITDA for the company is 1.94 billion with net debt to EBITDA at 0.72. When we switch over and look at the enterprise to sales, we see a ratio of 1.69. The receivables turnover for the company is 55.53for trailing twelve months and the total asset turnover is 2.01. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.76.
Conclusion
In conclusion, Ulta Beauty Inc (ULTA) has seen bad performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it 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.
