Ulta Beauty (NASDAQ:ULTA) Stock Price Down 4.4% After Analyst Downgrade

Ulta Beauty Inc. (NASDAQ:ULTA)’s share price fell 4.4% during trading on Friday after Bank of America lowered their price target on the stock from $685.00 to $650.00. Bank of America currently has a buy rating on the stock. Ulta Beauty traded as low as $513.91 and last traded at $516.08. Approximately 307,287 shares traded hands during trading, a decline of 56% from the average daily volume of 690,832 shares. The stock had previously closed at $540.10.

Several other equities research analysts have also issued reports on the company. Jefferies Financial Group reaffirmed a “buy” rating and set a $650.00 target price on shares of Ulta Beauty in a research report on Friday. Raymond James Financial restated a “strong-buy” rating and set a $700.00 price target on shares of Ulta Beauty in a research report on Friday. Wells Fargo & Company decreased their price objective on shares of Ulta Beauty from $475.00 to $450.00 and set an “underweight” rating for the company in a report on Wednesday, June 3rd. Barclays restated an “overweight” rating and set a $645.00 price objective on shares of Ulta Beauty in a report on Friday. Finally, Deutsche Bank Aktiengesellschaft boosted their target price on shares of Ulta Beauty from $692.00 to $695.00 and gave the company a “buy” rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $627.45.

Insider Activity

In other news, Director George R. Mrkonic, Jr. sold 383 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $475.84, for a total transaction of $182,246.72. Following the transaction, the director owned 2,404 shares of the company’s stock, valued at $1,143,919.36. This represents a 13.74% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.20% of the stock is currently owned by insiders.

Ulta Beauty News Summary

Here are the key news stories impacting Ulta Beauty this week:

• Positive Sentiment: Ulta exceeded expectations with fiscal Q2 EPS of $6.55 versus the approximately $6.20 consensus and revenue of $3.04 billion versus estimates near $2.99 billion. Revenue rose 8.9% year over year, while EPS increased 13.3%. Ulta Beauty Announces Second Quarter Fiscal 2026 Results and Raises Fiscal 2026 Guidance
• Positive Sentiment: Management raised fiscal 2026 guidance to $28.70-$29.00 in EPS and approximately $13.2-$13.3 billion in revenue, reflecting continued demand for beauty products and growth from marketing, product investments and international expansion. Ulta Beauty Raises Forecast as Sales Grow
• Positive Sentiment: Ulta increased its planned share repurchases to $1.8 billion, potentially supporting EPS and signaling confidence in cash generation. Operating cash flow also increased 24% year over year to $119.7 million. Ulta Beauty Gears Up For Holiday Season, Sees Weaker Q3 Vs Q4 Comparables
• Neutral Sentiment: Analysts maintain an overall “Moderate Buy” view, with a median price target around $635. Bank of America, however, lowered its target from $685 to $650 while retaining a Buy rating, suggesting optimism but more measured upside expectations. Ulta Beauty Analyst Forecasts
• Negative Sentiment: Near-term sentiment is pressured by expectations for weaker third-quarter comparisons ahead of the holiday season, signs of consumer fatigue and intensifying competition, including Target’s expanding prestige-beauty offering. Ulta Beauty Continues to Outperform Despite Signs of Consumer Fatigue

Institutional Investors Weigh In On Ulta Beauty

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Optimize Financial Inc lifted its holdings in Ulta Beauty by 1.4% during the fourth quarter. Optimize Financial Inc now owns 1,176 shares of the specialty retailer’s stock valued at $711,000 after purchasing an additional 16 shares during the last quarter. Root Financial Partners LLC increased its stake in shares of Ulta Beauty by 12.1% in the first quarter. Root Financial Partners LLC now owns 167 shares of the specialty retailer’s stock worth $87,000 after purchasing an additional 18 shares in the last quarter. Roberts Glore & Co. Inc. IL increased its stake in shares of Ulta Beauty by 5.3% in the fourth quarter. Roberts Glore & Co. Inc. IL now owns 394 shares of the specialty retailer’s stock worth $238,000 after purchasing an additional 20 shares in the last quarter. Allworth Financial LP raised its position in shares of Ulta Beauty by 3.9% in the fourth quarter. Allworth Financial LP now owns 555 shares of the specialty retailer’s stock valued at $336,000 after purchasing an additional 21 shares during the period. Finally, Wedbush Securities Inc. lifted its stake in shares of Ulta Beauty by 0.3% during the 4th quarter. Wedbush Securities Inc. now owns 6,455 shares of the specialty retailer’s stock valued at $3,905,000 after buying an additional 21 shares in the last quarter. 90.39% of the stock is currently owned by institutional investors.

Ulta Beauty Stock Performance

The company has a market capitalization of $21.86 billion, a PE ratio of 19.06, a PEG ratio of 1.69 and a beta of 0.87. The stock’s 50 day moving average is $496.33 and its 200 day moving average is $534.86.

Ulta Beauty (NASDAQ:ULTA) last released its quarterly earnings data on Thursday, August 27th. The specialty retailer reported $6.55 earnings per share for the quarter, beating analysts’ consensus estimates of $6.20 by $0.35. Ulta Beauty had a net margin of 9.36% and a return on equity of 44.77%. The business had revenue of $3.04 billion during the quarter, compared to analyst estimates of $2.99 billion. During the same period in the previous year, the business earned $5.78 EPS. Ulta Beauty’s revenue was up 8.9% compared to the same quarter last year. Ulta Beauty has set its FY 2026 guidance at 28.700-29.000 EPS. On average, equities research analysts forecast that Ulta Beauty Inc. will post 28.77 EPS for the current fiscal year.

Ulta Beauty Company Profile

Ulta Beauty, Inc (NASDAQ: ULTA) is a U.S.-based specialty retailer and beauty services provider focused on cosmetics, fragrance, skin care, hair care, bath and body, and beauty tools. The company operates a dual-format business that combines brick-and-mortar retail stores with an e-commerce platform, offering a broad assortment of national, prestige and mass-market brands alongside its own private-label products. In many locations Ulta also provides full-service salon treatments, positioning the company as a one-stop destination for product discovery and in-store services.

The retailer’s product mix spans color cosmetics, haircare and styling products, skin and body care, fragrance, and accessories, catering to a wide range of consumer preferences and price points.