Ulta Beauty (NASDAQ:ULTA) Trading Down 4.4% on Analyst Downgrade

Ulta Beauty Inc. (NASDAQ:ULTA)’s share price was down 4.4% during trading on Friday after Bank of America lowered their price target on the stock from $685.00 to $650.00. Bank of America currently has a buy rating on the stock. Ulta Beauty traded as low as $513.91 and last traded at $516.08. Approximately 307,287 shares were traded during trading, a decline of 56% from the average session volume of 690,832 shares. The stock had previously closed at $540.10.

A number of other equities analysts have also recently issued reports on ULTA. TD Cowen restated a “buy” rating on shares of Ulta Beauty in a report on Tuesday, July 21st. DA Davidson dropped their target price on shares of Ulta Beauty from $650.00 to $585.00 and set a “buy” rating on the stock in a research report on Wednesday, June 3rd. Wells Fargo & Company cut their target price on shares of Ulta Beauty from $475.00 to $450.00 and set an “underweight” rating on the stock in a research note on Wednesday, June 3rd. Weiss Ratings cut shares of Ulta Beauty from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, June 3rd. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $650.00 price target on shares of Ulta Beauty in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Ulta Beauty currently has an average rating of “Moderate Buy” and an average price target of $627.45.

Insider Transactions at Ulta Beauty

In other Ulta Beauty news, Director George R. Mrkonic, Jr. sold 383 shares of the business’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $475.84, for a total transaction of $182,246.72. Following the completion of the sale, the director owned 2,404 shares in the company, valued at approximately $1,143,919.36. The trade was a 13.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.20% of the company’s stock.

Ulta Beauty News Summary

Here are the key news stories impacting Ulta Beauty this week:

• Positive Sentiment: Ulta exceeded expectations with fiscal Q2 EPS of $6.55 versus the approximately $6.20 consensus and revenue of $3.04 billion versus estimates near $2.99 billion. Revenue rose 8.9% year over year, while EPS increased 13.3%. Ulta Beauty Announces Second Quarter Fiscal 2026 Results and Raises Fiscal 2026 Guidance
• Positive Sentiment: Management raised fiscal 2026 guidance to $28.70-$29.00 in EPS and approximately $13.2-$13.3 billion in revenue, reflecting continued demand for beauty products and growth from marketing, product investments and international expansion. Ulta Beauty Raises Forecast as Sales Grow
• Positive Sentiment: Ulta increased its planned share repurchases to $1.8 billion, potentially supporting EPS and signaling confidence in cash generation. Operating cash flow also increased 24% year over year to $119.7 million. Ulta Beauty Gears Up For Holiday Season, Sees Weaker Q3 Vs Q4 Comparables
• Neutral Sentiment: Analysts maintain an overall “Moderate Buy” view, with a median price target around $635. Bank of America, however, lowered its target from $685 to $650 while retaining a Buy rating, suggesting optimism but more measured upside expectations. Ulta Beauty Analyst Forecasts
• Negative Sentiment: Near-term sentiment is pressured by expectations for weaker third-quarter comparisons ahead of the holiday season, signs of consumer fatigue and intensifying competition, including Target’s expanding prestige-beauty offering. Ulta Beauty Continues to Outperform Despite Signs of Consumer Fatigue

Hedge Funds Weigh In On Ulta Beauty

Large investors have recently added to or reduced their stakes in the business. Fideuram Asset Management Ireland dac bought a new position in shares of Ulta Beauty in the fourth quarter valued at approximately $25,000. Strengthening Families & Communities LLC boosted its holdings in Ulta Beauty by 4,200.0% during the 4th quarter. Strengthening Families & Communities LLC now owns 43 shares of the specialty retailer’s stock worth $26,000 after acquiring an additional 42 shares during the last quarter. Hilton Head Capital Partners LLC raised its holdings in shares of Ulta Beauty by 860.0% in the first quarter. Hilton Head Capital Partners LLC now owns 48 shares of the specialty retailer’s stock valued at $25,000 after purchasing an additional 43 shares during the last quarter. Nalls Sherbakoff Group LLC purchased a new stake in shares of Ulta Beauty in the fourth quarter valued at about $30,000. Finally, Ascentis Independent Advisors purchased a new stake in shares of Ulta Beauty in the first quarter valued at about $29,000. Institutional investors own 90.39% of the company’s stock.

Ulta Beauty Stock Down 5.9%

The company has a market capitalization of $21.86 billion, a P/E ratio of 19.06, a price-to-earnings-growth ratio of 1.69 and a beta of 0.87. The business’s 50-day moving average is $496.33 and its two-hundred day moving average is $534.86.

Ulta Beauty (NASDAQ:ULTA) last issued its quarterly earnings data on Thursday, August 27th. The specialty retailer reported $6.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.20 by $0.35. The business had revenue of $3.04 billion during the quarter, compared to the consensus estimate of $2.99 billion. Ulta Beauty had a net margin of 9.36% and a return on equity of 44.77%. The firm’s quarterly revenue was up 8.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $5.78 EPS. Ulta Beauty has set its FY 2026 guidance at 28.700-29.000 EPS. Analysts predict that Ulta Beauty Inc. will post 28.77 EPS for the current year.

Ulta Beauty Company Profile

Ulta Beauty, Inc (NASDAQ: ULTA) is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.

The retailer’s product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.