e.l.f. Beauty (NYSE:ELF) Hits New 12-Month Low - Should You Sell?

e.l.f. Beauty, Inc. (NYSE:ELF) has recently announced that its shares hit a new 52-week low, trading at $60.35 on Friday before settling at $61.16, following a trading volume of 314,214 shares. This comes after a previous close of $62.41.

Analysts Upgrade Price Targets

Several analysts have revised their price targets for e.l.f. Beauty. Notably, JPMorgan Chase & Co. increased its target from $154.00 to $163.00, while giving the stock an "overweight" rating. In another shift, Truist Financial raised its price target from $130.00 to $150.00, categorizing the stock as a “buy.” However, not all adjustments were upward; Stifel Nicolaus lowered its pricing outlook from $115.00 to $105.00, citing a “hold” rating. The Goldman Sachs Group also reduced its target to $124.00 from $142.00 but maintained a “buy” rating. Conversely, DA Davidson adjusted its target down to $75.00 from $80.00, indicating a “neutral” stance. Currently, five analysts rate the stock as a hold, eleven give it a buy rating, and two rate it as a strong buy. Overall, the consensus rating remains a "Moderate Buy" with a target price of $132.65 according to MarketBeat.com.

Company Financials

e.l.f. Beauty displays a solid financial profile with a debt-to-equity ratio of 0.20, a quick ratio of 1.17, and a current ratio of 1.90. The stock has a market capitalization of $3.50 billion, a price-to-earnings (PE) ratio of 36.69 and a PEG ratio of 6.76, along with a beta of 1.60. Its 50-day moving average sits at $86.96, while the 200-day moving average is at $108.72. In its last quarterly earnings report, posted February 6th, the company reported earnings per share of $0.41, falling short of analysts' expectations of $0.76 by $0.35. The company registered a return on equity of 16.88% along with a net margin of 7.55%. Analysts predict an average earnings per share of 2.38 for the current year.

Insider Transactions

In other news related to e.l.f. Beauty, Director Maureen C. Watson sold 4,000 shares on March 7th at an average price of $67.39, bringing in a total of $269,560.00. Following this sale, she retained 1,888 shares valued at around $127,232.32, which marks a significant 67.93% decrease in her ownership. This sale was disclosed in a filing with the SEC.

Institutional Holdings

Numerous hedge funds and institutional investors have made changes to their holdings in e.l.f. Beauty recently. Specifically, Wealth Enhancement Advisory Services LLC increased its stake by 42.9% in the last quarter, owning 8,347 shares worth $1,048,000 after purchasing an additional 2,505 shares. Additionally, Brooklyn FI LLC and Mackenzie Financial Corp acquired new stakes in e.l.f. Beauty valued at $422,000 and $64,488,000 respectively. GTS Securities LLC increased its holdings by a remarkable 102.7%, while Pinnacle Investment Management Ltd also acquired a new stake estimated at $1,256,000. Currently, 92.44% of the stock is held by institutional investors and hedge funds.

About e.l.f. Beauty

e.l.f. Beauty, Inc. is a holding company that specializes in the provision of inclusive, accessible, clean, vegan, and cruelty-free cosmetics and skincare products. The company engages primarily in e-commerce, national retailers, and international business channels under its brands including e.l.f., e.l.f. Skin, WELL People, and KEYS Soulcare.

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