e.l.f. Beauty (NYSE:ELF) Shares Down 4.5% – Time to Sell?

e.l.f. Beauty (NYSE:ELF)’s stock price dropped 4.5% during trading on Wednesday . The company traded as low as $63.71 and last traded at $63.9390. Approximately 1,730,239 shares were traded during trading, a decline of 39% from the average daily volume of 2,828,447 shares. The stock had previously closed at $66.93.

Key Stories Impacting e.l.f. Beauty

Here are the key news stories impacting e.l.f. Beauty this week:

• Positive Sentiment: e.l.f. Beauty is expanding into haircare, which analysts view as a strong strategic fit and a positive addition to its fall innovation pipeline. The move aligns with favorable category trends and could open a new growth engine for the company. e.l.f. Beauty bets on hair as its next growth engine
• Positive Sentiment: Momentum in the Rhode brand and recent financial results are also helping lift sentiment, with traders viewing the company as exceptionally strong even as the broader market was weaker. e.l.f. Beauty Stock Shows Exceptional Strength: What’s Fueling The Momentum?
• Positive Sentiment: Broader industry trends are supportive, with cosmetics stocks benefiting from rising skincare demand, product innovation, and expanding digital channels. 4 Cosmetics Stocks Worth Watching on Favorable Industry Trends
• Neutral Sentiment: Several consumer-interest articles about e.l.f. products and related personality pieces were published, but they appear to be more awareness-building than direct stock catalysts.

Analyst Ratings Changes

ELF has been the subject of several analyst reports. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $64.00 target price on shares of e.l.f. Beauty in a research report on Tuesday. Jefferies Financial Group decreased their price target on e.l.f. Beauty from $85.00 to $70.00 and set a “buy” rating for the company in a research note on Thursday, May 21st. Evercore began coverage on e.l.f. Beauty in a research report on Thursday, April 2nd. They set an “inline” rating and a $68.00 price objective for the company. Piper Sandler reiterated a “neutral” rating on shares of e.l.f. Beauty in a report on Friday, June 12th. Finally, Citigroup decreased their target price on shares of e.l.f. Beauty from $115.00 to $87.00 and set a “buy” rating for the company in a research report on Wednesday, April 15th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $78.31.

e.l.f. Beauty Price Performance

The stock has a market capitalization of $3.74 billion, a P/E ratio of 136.24, a price-to-earnings-growth ratio of 2.63 and a beta of 1.64. The business’s 50 day simple moving average is $59.62 and its two-hundred day simple moving average is $72.75. The company has a quick ratio of 1.69, a current ratio of 2.35 and a debt-to-equity ratio of 0.72.

e.l.f. Beauty (NYSE:ELF) last posted its earnings results on Wednesday, May 20th. The company reported $0.32 earnings per share for the quarter, topping analysts’ consensus estimates of $0.29 by $0.03. e.l.f. Beauty had a net margin of 1.61% and a return on equity of 11.02%. The company had revenue of $449.29 million for the quarter, compared to analyst estimates of $423.06 million. During the same quarter in the prior year, the business posted $0.78 EPS. The firm’s revenue was up 35.1% compared to the same quarter last year. e.l.f. Beauty has set its FY 2027 guidance at 3.270-3.320 EPS. As a group, sell-side analysts forecast that e.l.f. Beauty will post 2.42 earnings per share for the current fiscal year.

Insider Transactions at e.l.f. Beauty

In related news, insider Jennifer Catherine Hartnett sold 4,352 shares of the company’s stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $51.53, for a total transaction of $224,258.56. Following the completion of the sale, the insider owned 54,056 shares in the company, valued at approximately $2,785,505.68. This represents a 7.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Kory Marchisotto sold 4,352 shares of the stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $51.53, for a total value of $224,258.56. Following the completion of the sale, the insider directly owned 181,868 shares of the company’s stock, valued at $9,371,658.04. The trade was a 2.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 256,347 shares of company stock valued at $15,713,592. Corporate insiders own 3.90% of the company’s stock.

Institutional Trading of e.l.f. Beauty

Institutional investors and hedge funds have recently made changes to their positions in the company. BNP Paribas Financial Markets raised its stake in shares of e.l.f. Beauty by 3,131.7% in the fourth quarter. BNP Paribas Financial Markets now owns 924,902 shares of the company’s stock valued at $70,330,000 after buying an additional 896,282 shares during the period. Price T Rowe Associates Inc. MD increased its holdings in e.l.f. Beauty by 47.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,197,319 shares of the company’s stock worth $167,086,000 after acquiring an additional 711,540 shares during the last quarter. Swedbank AB raised its stake in e.l.f. Beauty by 97.0% in the 4th quarter. Swedbank AB now owns 1,364,801 shares of the company’s stock valued at $103,779,000 after acquiring an additional 672,071 shares during the period. Armistice Capital LLC lifted its holdings in e.l.f. Beauty by 394.9% during the fourth quarter. Armistice Capital LLC now owns 657,983 shares of the company’s stock valued at $50,033,000 after purchasing an additional 525,018 shares during the last quarter. Finally, Norges Bank purchased a new stake in e.l.f. Beauty during the fourth quarter valued at about $38,895,000. Hedge funds and other institutional investors own 92.44% of the company’s stock.

About e.l.f. Beauty

e.l.f. Beauty (NYSE: ELF) is an American cosmetics company known for offering an extensive range of affordable, trend-driven makeup and skincare products. The company’s portfolio spans foundations, lipsticks, mascaras, brushes, serums, masks and other beauty essentials, all positioned at accessible price points. e.l.f. Beauty maintains a direct-to-consumer platform through its e-commerce site and engages in widespread retail partnerships with major chains such as Target, Walmart, Ulta Beauty and Amazon.

Founded in 2004 and headquartered in Oakland, California, e.l.f.