Investors Buy Estee Lauder Companies (EL) on Weakness on Insider Selling

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Traders purchased shares of Estee Lauder Companies Inc (NYSE:EL) on weakness during trading on Monday after an insider sold shares in the company. $132.77 million flowed into the stock on the tick-up and $71.18 million flowed out of the stock on the tick-down, for a money net flow of $61.59 million into the stock. Of all stocks tracked, Estee Lauder Companies had the 8th highest net in-flow for the day. Estee Lauder Companies traded down ($1.30) for the day and closed at $141.81Specifically, CEO Fabrizio Freda sold 31,055 shares of the stock in a transaction on Friday, September 7th. The stock was sold at an average price of $138.42, for a total value of $4,298,633.10. Following the sale, the chief executive officer now directly owns 99,008 shares of the company’s stock, valued at $13,704,687.36. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Jane Lauder sold 36,334 shares of the stock in a transaction on Thursday, August 23rd. The stock was sold at an average price of $133.23, for a total value of $4,840,778.82. Following the completion of the sale, the director now directly owns 45,037 shares in the company, valued at $6,000,279.51. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 121,341 shares of company stock worth $16,678,090. 16.13% of the stock is owned by insiders.

A number of research analysts have recently issued reports on EL shares. Zacks Investment Research downgraded Estee Lauder Companies from a “hold” rating to a “strong sell” rating in a report on Monday, October 1st. Piper Jaffray Companies set a $156.00 price target on Estee Lauder Companies and gave the company an “overweight” rating in a report on Tuesday, August 21st. JPMorgan Chase & Co. downgraded Estee Lauder Companies from an “overweight” rating to a “neutral” rating and set a $138.00 price target on the stock. in a report on Friday, October 12th. Atlantic Securities started coverage on Estee Lauder Companies in a report on Thursday, September 20th. They set an “overweight” rating and a $162.00 price target on the stock. Finally, Morgan Stanley raised Estee Lauder Companies from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $159.00 to $160.00 in a report on Tuesday, August 28th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and nineteen have assigned a buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $146.98.

The company has a debt-to-equity ratio of 0.76, a current ratio of 1.75 and a quick ratio of 1.28. The firm has a market cap of $52.55 billion, a price-to-earnings ratio of 31.44, a PEG ratio of 2.49 and a beta of 0.66.

Estee Lauder Companies (NYSE:EL) last posted its earnings results on Wednesday, October 31st. The company reported $1.41 earnings per share for the quarter, beating analysts’ consensus estimates of $1.22 by $0.19. Estee Lauder Companies had a return on equity of 38.29% and a net margin of 8.48%. The company had revenue of $3.52 billion for the quarter, compared to the consensus estimate of $3.48 billion. During the same quarter in the prior year, the company earned $1.21 earnings per share. Estee Lauder Companies’s revenue was up 7.6% on a year-over-year basis. On average, equities analysts anticipate that Estee Lauder Companies Inc will post 4.83 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Monday, December 17th. Shareholders of record on Friday, November 30th will be given a $0.43 dividend. This is a boost from Estee Lauder Companies’s previous quarterly dividend of $0.38. The ex-dividend date of this dividend is Thursday, November 29th. This represents a $1.72 dividend on an annualized basis and a yield of 1.21%. Estee Lauder Companies’s dividend payout ratio is presently 33.70%.

A number of institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. grew its position in shares of Estee Lauder Companies by 0.9% during the second quarter. BlackRock Inc. now owns 16,282,787 shares of the company’s stock worth $2,323,392,000 after purchasing an additional 150,268 shares in the last quarter. Fundsmith Equity Fund L.P. purchased a new position in Estee Lauder Companies during the 2nd quarter valued at approximately $701,543,000. Northern Trust Corp grew its holdings in Estee Lauder Companies by 1.7% during the 2nd quarter. Northern Trust Corp now owns 3,801,166 shares of the company’s stock valued at $542,387,000 after buying an additional 62,690 shares in the last quarter. Wells Fargo & Company MN grew its holdings in Estee Lauder Companies by 15.2% during the 2nd quarter. Wells Fargo & Company MN now owns 3,172,974 shares of the company’s stock valued at $452,750,000 after buying an additional 418,055 shares in the last quarter. Finally, Acadian Asset Management LLC grew its holdings in Estee Lauder Companies by 13.2% during the 2nd quarter. Acadian Asset Management LLC now owns 2,650,107 shares of the company’s stock valued at $378,143,000 after buying an additional 308,093 shares in the last quarter. Institutional investors and hedge funds own 55.77% of the company’s stock.

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Estee Lauder Companies Company Profile (NYSE:EL)

The Estée Lauder Companies Inc manufactures and markets skin care, makeup, fragrance, and hair care products. The company offers a range of skin care products, such as moisturizers, serums, cleansers, toners, body care products, exfoliators, acne care products, facial masks, cleansing devices, and sun care products; and makeup products, including lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes, and powders, as well as related items, including compacts, brushes, and other makeup tools.

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