Eisler Capital Cuts Ulta Beauty Stake by Over 50% in Q2

Eisler Capital Management Ltd. has reduced its holdings in Ulta Beauty Inc. by 50.7% during the second quarter of 2023. Following the sale of 14,568 shares, the fund now owns 14,188 shares, valued at approximately $6.65 million as of the latest reporting period, according to a 13F filing with the Securities and Exchange Commission. This strategic decision reflects a broader trend among institutional investors regarding their positions in the specialty retailer.

Several other large investors have made significant adjustments to their stakes in Ulta Beauty. Notably, Price T Rowe Associates Inc. increased its holdings by 128.2% in the first quarter, acquiring an additional 688,267 shares to reach a total of 1,225,023 shares, worth around $449 million. Similarly, T. Rowe Price Investment Management Inc. raised its position by 64.8%, now holding 931,557 shares valued at approximately $341 million.

JPMorgan Chase & Co. reported an 81.7% increase in its Ulta Beauty shares during the same period, bringing its total to 913,600 shares worth about $334 million. Invesco Ltd. also expanded its investment by 10.9%, now owning 813,639 shares valued at $298 million after purchasing an additional 79,666 shares. Furthermore, Franklin Resources Inc. increased its holdings by 5.4%, owning 582,635 shares worth approximately $273 million.

Currently, institutional investors hold 90.39% of Ulta Beauty’s stock, indicating strong confidence in the company’s performance.

Stock Performance and Analyst Ratings

As of Monday, Ulta Beauty’s stock opened at $515.58. The company has a market capitalization of $23.12 billion, with a price-to-earnings ratio of 19.77 and a PEG ratio of 3.41. The stock has fluctuated between a fifty-two week low of $309.01 and a high of $572.23, reflecting the volatility in the retail sector.

Analysts have mixed opinions regarding Ulta Beauty’s stock. Weiss Ratings maintained a “hold” rating on October 8, 2023, while Wall Street Zen downgraded the stock from “buy” to “hold” on September 26, 2023. In contrast, Bank of America raised its target price from $500 to $575 on August 29, 2023, assigning a “neutral” rating. Barclays increased its price objective from $589 to $617, giving an “overweight” rating, whereas Telsey Advisory Group reiterated its “outperform” rating with a target price of $610.

Currently, one analyst rates the stock as a Strong Buy, while thirteen have assigned a Buy rating, eleven have given it a Hold rating, and one has issued a Sell rating. According to MarketBeat.com, the consensus rating for Ulta Beauty stands at “Moderate Buy,” with an average price target of $550.38.

Insider Transactions

In related news, Ulta Beauty Director Mike C. Smith sold 500 shares on September 4, 2023, at an average price of $528.43, generating a total of $264,215. Following this transaction, Smith holds 2,263 shares in the company, valued at approximately $1.20 million, representing an 18.10% decrease in his ownership. This sale has been documented in a filing with the SEC.

Insider ownership at Ulta Beauty is currently at 0.39%.

Company Overview

Ulta Beauty, Inc. operates as a specialty beauty retailer in the United States, offering a wide range of branded and private label beauty products. Its portfolio includes cosmetics, fragrances, haircare, skincare, and salon styling tools, accessible through its Ulta Beauty stores, online platform, and mobile applications.

As investor interest continues to evolve, the performance of Ulta Beauty will be closely monitored as it navigates the competitive landscape of the beauty retail sector.