e.l.f. Beauty (ELF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Dara Mohsenian from Morgan Stanley maintained a Hold rating on the stock and has a $70.00 price target.
Dara Mohsenian has given his Hold rating due to a combination of factors influencing e.l.f. Beauty’s current market performance. The company’s US scanner sales, including Amazon 1P, showed a year-over-year growth of 3.1% in the latest two weeks and 6.4% in the last week, indicating some positive momentum. However, these figures, while above prior periods, reflect a mixed performance when considering the broader context of market share gains and velocity.
Despite the increase in market share over the latest week and four-week period, the gains were smaller compared to previous periods. Additionally, the velocity of e.l.f. Beauty’s sales was down by 7.7% year-over-year in the four-week period, suggesting challenges in sustaining growth. These factors contribute to a cautious outlook, leading to the Hold rating as investors weigh the potential for future growth against current performance metrics.
Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ELF in relation to earlier this year.