Ulta Beauty Stock Surges After Analyst Upgrade

Ulta Beauty, Inc. (NASDAQ:ULTA) experienced a significant spike in its stock price before trading on Tuesday. This surge came after Wells Fargo & Company upgraded their price target for the company, increasing it from $350.00 to $370.00. The stock had closed at $431.30 previously, but opened at a remarkable $450.02. Despite the upgrade in price target, Wells Fargo maintains an underweight rating on Ulta Beauty's stock. As of the latest trading session, Ulta Beauty shares were last recorded at $445.54, with a trading volume of 449,700 shares.

Analyst Opinions on Ulta's Stock

Ulta Beauty has been the focus of multiple reports from various analysts. Citigroup recently raised their price target from $390.00 to $450.00, assigning a "neutral" rating. In a different note, DA Davidson increased their target price from $435.00 to $510.00 and gave a "buy" rating. On the other hand, StockNews.com downgraded Ulta Beauty from a "hold" rating to a "sell" rating. Meanwhile, Stifel Nicolaus raised their price objective from $395.00 to $455.00, maintaining a "hold" designation. B. Riley also changed their stance, upgrading from "sell" to "neutral." Among analysts, two have a sell rating, twelve have a hold rating, and eleven have issued buy ratings, resulting in a consensus rating of "Hold" with an average target price of $442.09.

Institutional Investment Activity

Several institutional investors and hedge funds have been active in the stock, either increasing or reducing their stakes. International Assets Investment Management LLC saw a remarkable increase, boosting its stake in Ulta Beauty by 180,713.0% during the third quarter. Now, they hold approximately 1,238,569 shares valued at around $481.95 million after acquiring an additional 1,237,884 shares. Other significant transactions included the Ontario Teachers Pension Plan Board, which made a new investment in the stock worth approximately $359.48 million, and Holocene Advisors LP, which raised its holdings by a staggering 3,246.2%. This indicates strong institutional interest, with institutional investors owning about 90.39% of Ulta Beauty's stock.

Ulta Beauty's Stock Metrics

As of now, Ulta Beauty's fifty-day moving average is $398.53, while the two-hundred-day moving average stands at $383.10. The company has a market capitalization of $20.56 billion, a P/E ratio of 17.74, and a PEG ratio of 2.38, with a beta of 1.28.

Earnings Report Insights

Ulta Beauty recently announced its quarterly earnings, reporting an earnings per share (EPS) of $5.14, which surpasses the consensus estimate of $4.45 by $0.69. The company showed a return on equity of 51.95% and a net margin of 10.58%. Its quarterly revenue reached $2.53 billion, exceeding the anticipated $2.50 billion from analysts. Compared to the previous year, the revenue increased by 1.7%. Analysts predict that for the current year, Ulta Beauty, Inc. will post ***23.57 EPS***.

About Ulta Beauty

Ulta Beauty, Inc., is a specialty beauty retailer operating across the United States. The company provides a wide range of branded and private label beauty products, including cosmetics, fragrances, haircare, skincare, bath and body products, and professional hair products through its stores and online platforms.

Ulta, Beauty, Stocks