The Estee Lauder Companies Inc. (NYSE:EL) closed Thursday at $234.91 per share, down from $237.86 a day earlier. While The Estee Lauder Companies Inc. has underperformed by -1.24%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, EL fell by -26.26%, with highs and lows ranging from $374.20 to $225.39, whereas the simple moving average fell by -16.06% in the last 200 days.
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On September 21, 2022, Goldman Upgraded The Estee Lauder Companies Inc. (NYSE: EL) to Buy. A report published by Oppenheimer on May 31, 2022, Reiterated its previous ‘Outperform’ rating for EL. Citigroup February 04, 2022d the rating to Buy on February 04, 2022, and set its price target from $355 to $374. Wells Fargo resumed its ‘Overweight’ rating for EL, as published in its report on February 04, 2022. UBS’s report from February 04, 2022 suggests a price prediction of $326 for EL shares, giving the stock a ‘Neutral’ rating. Morgan Stanley also rated the stock as ‘Overweight’.
Analysis of The Estee Lauder Companies Inc. (EL)
The current dividend for EL investors is set at $2.40 per share, indicating investors will get a return regardless of how the company performs over the next quarter. Further, the quarter-over-quarter decrease in sales is -9.50%, showing a negative trend in the upcoming months.
There are several well-rounded types of analysis and research techniques that can be used to gain a clear view of The Estee Lauder Companies Inc.’s future performance, with equity being one of the most critical indicators. The goal here is to ensure that your current return on equity of 39.80% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 1.10, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
As an indicator of volatility for any stock, average volume can also be very valuable, and EL is recording an average volume of 1.23M. On a monthly basis, the volatility of the stock is set at 2.68%, whereas on a weekly basis, it is put at 2.43%, with a loss of -4.03% over the past seven days. Furthermore, long-term investors anticipate a median target price of $309.70, showing growth from the present price of $234.91, which can serve as yet another indication of whether EL is worth investing in or should be passed over.
How Do You Analyze The Estee Lauder Companies Inc. Shares?
The Estee Lauder Companies Inc. (EL) is based in the USA and is one of the most prominent companies operating in the Household & Personal Products market. When comparing The Estee Lauder Companies Inc. shares with other companies under Consumer Defensive, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 35.96, there is a growth in quarterly earnings of -94.80%.
Apart from looking at the fundamentals, you should also pay attention to the number of company employees who own shares. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.10%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 92.10% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in EL shares?
The recent increase in stakes in EL appears to be a result of several institutional investors and hedge funds increasing their positions. The Vanguard Group, Inc.’s position in EL has increased by 0.96% in the first quarter. The company now owns 16,968,529 shares of the stock, with a value of $4.32 billion, following the purchase of 160,879 additional shares during the last quarter. BlackRock Fund Advisors made another decreased to its shares in EL during the first quarter, downing its stake by -1.73%. During the last quarter, the company dropped down -185,293 additional shares for a total stake of worth $2.68 billion, bringing number of shares owned by the company to 10,550,961.
During the first quarter, SSgA Funds Management, Inc. subtracted a -151,117 position in EL. Fidelity Management & Research Co sold an additional -1.0 million shares in the last quarter, decreasing its holdings by -10.90%, now holding 8.15 million shares worth $2.07 billion. At the end of the first quarter, Fundsmith LLP increased its EL holdings by 4.20% and now holds 7.57 million EL shares valued at $1.93 billion with the added 0.31 million shares during the period. EL shares are owned by institutional investors to the tune of 92.10% at present.