e.l.f. Beauty (NYSE:ELF) Shares Gap Up - Here's What Happened

e.l.f. Beauty, Inc. (NYSE:ELF) experienced a notable increase in its share price before the market opened on Friday. The stock, which had closed the previous day at $62.97, opened significantly higher at $66.13. Following this, e.l.f. Beauty shares last traded at $66.44, with a trading volume of 516,912 shares.

Wall Street Analyst Opinions

A range of financial research firms have recently evaluated e.l.f. Beauty’s stock. For instance, Deutsche Bank Aktiengesellschaft initiated coverage on the shares on December 12, issuing a "hold" rating with a target price of $133.00. Similarly, JPMorgan Chase & Co. upgraded their target price from $154.00 to $163.00, giving the company an "overweight" rating on January 16.

Moreover, DA Davidson reaffirmed a "neutral" rating with an $80.00 price target on February 18. Truist Financial raised their price objective from $130.00 to $150.00, assigning a "buy" rating in a report dated December 18. Canaccord Genuity Group adjusted their target price from $174.00 to $105.00 while maintaining a "buy" rating as of February 7. Altogether, five analysts have rated the stock as a hold, eleven analysts have given it a buy rating, and two analysts have assigned a strong buy rating. According to MarketBeat, e.l.f. Beauty now has an average rating of "Moderate Buy" with an average price target of $132.94.

e.l.f. Beauty Price Performance Overview

The company holds a market capitalization of $3.80 billion, with a price-to-earnings ratio of 39.82 and a price-to-earnings-growth ratio of 6.76, accompanied by a beta of 1.60. Financial metrics show a quick ratio of 1.17 and a current ratio of 1.90, while the debt-to-equity ratio sits at 0.20. Recent trading data reveals a 50-day simple moving average of $93.16 and a 200-day simple moving average of $111.75. e.l.f. Beauty reported its quarterly earnings on February 6, revealing an earnings per share (EPS) of $0.41, which fell short of the consensus estimate of $0.76 by $0.35. The company also reported a net margin of 7.55% and a return on equity of 16.88%. Analysts predict e.l.f. Beauty will achieve an EPS of 2.38 for the current fiscal year.

Insider Activity Insights

Director Maureen C. Watson sold 4,000 shares of e.l.f. Beauty stock on March 7 at an average price of $67.39, totaling $269,560.00. After this transaction, Watson directly owns 1,888 shares valued at approximately $127,232.32. This sale represented a 67.93% decrease in her position. This information has been disclosed in a legal filing with the Securities and Exchange Commission (SEC), where 3.50% of the stock is owned by insiders.

Institutional Ownership Changes

Large financial institutions have recently adjusted their holdings in e.l.f. Beauty. For example, the State of New Jersey Common Pension Fund D increased its stake by 4.2% in the third quarter, owning 21,443 shares valued at approximately $2,338,000 after buying an additional 874 shares. Meanwhile, Entropy Technologies LP raised its position by 60.3%, achieving ownership of 3,238 shares valued at $353,000.

GSA Capital Partners LLP also increased its stake in e.l.f. Beauty by 230.6%, owning 13,045 shares valued at $1,422,000 after acquiring an additional 9,099 shares in the last quarter. Similarly, Sumitomo Mitsui Trust Group Inc. boosted its holdings by an impressive 1,380.4%, now owning 16,284 shares valued at $1,775,000 after acquiring an additional 15,184 shares. Finally, Prime Capital Investment Advisors LLC grew its position by 7.9%, now holding 12,488 shares worth $1,362,000. Overall, institutional investors own approximately 92.44% of e.l.f. Beauty's stock.

Company Overview of e.l.f. Beauty

e.l.f. Beauty, Inc. is a holding company specializing in providing clean, accessible, vegan, and cruelty-free cosmetics and skincare products. The company operates through various channels, including e-commerce and national retailers, in addition to its international business. The company's brands include elf, elf skin, WELL People, and KEYS soulcare.

Conclusion

This gap up in e.l.f. Beauty's share price reflects a significant moment in the market, signaling potential investor interest and analyst attention. As events unfold, monitoring the company’s performance and analyst ratings will provide insights into its future trajectory.

e.l.f., Beauty, Stocks