CW Advisors Invests $552,000 in Estee Lauder Companies Inc.

CW Advisors LLC has made a significant investment in The Estee Lauder Companies Inc. by acquiring a new position valued at approximately $552,000. This purchase, amounting to 6,833 shares, was disclosed in a recent filing with the Securities and Exchange Commission (SEC) for the second quarter of the year.

The investment landscape for Estee Lauder has seen notable activity, with several large investors increasing their stakes. For instance, Vanguard Group Inc. raised its holding by 1.3%, now owning 26,904,441 shares valued at around $2.17 billion following the acquisition of an additional 341,235 shares in the last quarter. Similarly, Independent Franchise Partners LLP increased its position by 1.5% in the first quarter, bringing its total to 7,976,434 shares worth approximately $526 million.

Another major player, Geode Capital Management LLC, boosted its stake by 17.8% during the second quarter, now holding 5,912,792 shares valued at about $475 million. Additionally, American Century Companies Inc. enhanced its holdings by 34.9% in the first quarter, acquiring 1,167,508 shares for a total of $297 million. The Bank of New York Mellon Corp. also increased its stake by 35.2% during the second quarter, now owning 4,175,394 shares valued at approximately $337 million. Collectively, institutional investors hold 55.15% of Estee Lauder’s stock.

Stock Performance and Earnings Report

Estee Lauder’s stock opened at $102.78 on the New York Stock Exchange (NYSE: EL) on Wednesday. The company has a market capitalization of $37.04 billion, with a price-to-earnings ratio of -39.84 and a PEG ratio of 1.32. Its stock demonstrates a beta of 1.18, indicating a higher volatility compared to the market. Over the past year, the stock has fluctuated significantly, with a low of $48.37 and a high of $105.78.

In its most recent quarterly earnings report, released on October 30, 2023, Estee Lauder reported earnings per share of $0.32, surpassing analysts’ expectations of $0.15 by $0.17. The company generated revenue of $3.48 billion, exceeding the consensus estimate of $3.38 billion. Year-on-year, Estee Lauder’s revenue increased by 3.6% compared to the same quarter last year.

Looking ahead, the company has set guidance for fiscal year 2026, projecting earnings per share between $1.90 and $2.10. Analysts anticipate that Estee Lauder will report earnings per share of $1.36 for the current year.

Dividend Announcement and Analyst Ratings

Recently, Estee Lauder announced a quarterly dividend of $0.35 per share, scheduled for distribution on December 15, 2023, to shareholders of record as of November 28, 2023. This translates to an annualized dividend of $1.40 and a dividend yield of 1.4%. The ex-dividend date is also set for November 28, 2023. Currently, the company’s dividend payout ratio stands at -54.26%.

Analysts have provided varying assessments of Estee Lauder’s stock. Evercore ISI raised their price target from $100.00 to $115.00 while maintaining an “outperform” rating. Similarly, Royal Bank of Canada increased its price target from $107.00 to $113.00, also categorizing the stock as “outperform.” In contrast, Rothschild & Co Redburn downgraded the stock from “neutral” to “sell,” reducing their price target from $83.00 to $70.00.

The overall analyst sentiment reflects a mix of confidence and caution, with one analyst rating the stock as a Strong Buy, ten issuing a Buy rating, ten recommending Hold, and three advising Sell. According to data from MarketBeat.com, the average rating is “Hold” with a consensus price target of $94.43.

In insider trading activity, Meridith Webster, Vice President of Estee Lauder, sold 5,430 shares on November 18, 2023, for a total of $476,971.20. Additionally, Barry S. Sternlicht, a director, sold 3,972 shares on November 11, 2023, worth approximately $364,748.76. After the sale, Sternlicht retained 34,812 shares valued at around $3.20 million, reflecting a 10.24% decrease in his position.

As of now, insiders own approximately 13.05% of Estee Lauder’s stock, indicating a notable level of management investment in the company.

The Estee Lauder Companies Inc. is known for manufacturing and marketing a wide variety of skin care, makeup, fragrance, and hair care products globally, catering to a diverse consumer base.