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Oakland-based cosmetic and skin-care products provider e.l.f. Beauty, Inc (NYSE: ELF) is being eyed by Everence Capital Management Inc., which increased its stake in the company by 30.3% for Q4 2020, according to a recent filing with the Securities and Exchange Commission. The investment firm now owns almost 11,000 shares with a value of $606,000. Everence Capital Management’s interest in e.l.f. Beauty could be because the cosmetics industry has demonstrated resilience during the pandemic. E.L.F.’s strategy of focusing on e-commerce, national retailers and international business channels could also make it an attractive target.
Recently, insiders Scott Milsten and Tarang Amin sold shares in the company worth more than $7m collectively over separate transactions, according to disclosures released through the SEC website. While CEOs selling off shares is not uncommon, investors should view this as a leading indicator of potential headwinds ahead that those inside understand better than most.
In spite of these insider sales happening at such a high dollar volume comparatively speaking, it still represents only a small fraction of total holdings for each individual so caution should be taken before taking any bold steps ahead.
It would seem that investing in skincare products may well continue to trend upwards beyond lockdown periods if analysts from Forbes.com are to believed; they predict that growth will reach 5% p.a. between 2021–2026 as consumers become focused on self-care routines following significant self-imposed at-home time during COVID-19.
Overall, there might be some opportunities in e.l.f’s parentage but shareholders should proceed with caution when considering buying into any individual industries asset value alone due to factors such as rising inflation rates!
Hedge Funds and Institutional Investors Show Interest in E.L.F. Beauty’s Sustainable Growth Potential
e.l.f. Beauty, Inc. (ELF) has seen a surge in the interest of institutional investors and hedge funds lately, and for good reason. According to recent reports, Advisor Group Holdings Inc., Bank of New York Mellon Corp, Citigroup Inc., AlphaCrest Capital Management LLC, and MetLife Investment Management LLC have all increased their stake in the company during the 1st quarter of this year. Bank of New York Mellon Corp and MetLife Investment Management LLC increased their stake by 1.1% and 53.3%, respectively.
It’s clear that hedge funds and institutional investors believe in e.l.f Beauty’s potential for growth, which is backed up by strong performance numbers. In fact, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $72.42 – indicating that industry insiders are bullish on e.l.f Beauty’s prospects.
As a cosmetics holding company focused on skin-care products, e.l.f Beauty’s brands – elf, elf skin, WELL People and KEYS soulcare – cater to a growing demand for sustainably-sourced and eco-friendly products among conscious consumers.
At present, ELF has a current ratio of 3.00 with a quick ratio of 2.08, indicating its ability to fulfill short-term obligations when they come due without requiring additional resources.
The company had revenue of $146.54 million in Q4 2020 alone compared to analysts’ expectations of just $121.82 million; more importantly posting an earnings per share (EPS) of $0.37 beating analysts’ consensus estimates by $0.21.
With all these positive indicators pointing towards upliftment on the horizon for ELF, it would not come as a surprise if we see even greater investments into E.L.F Beauty further down the road as industry analysts project another year or more profitable quarters from this cosmetic beauty player with high sustainability quotient.
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