In a recent series of transactions, Scott Milsten, Senior Vice President, General Counsel, Corporate Secretary & Chief People Officer of e.l.f. Beauty, Inc. (NYSE:ELF), sold a significant number of shares in the company. According to the latest filings, Milsten offloaded a total of 20,315 shares at a price of $184.96 each, amounting to a combined value of $3,962,421.
The sales took place on June 5, 2024, and were executed in two separate transactions. The first transaction saw 8,787 shares being sold, while the second involved 12,528 shares. These sales were reportedly made to satisfy tax or other government withholding obligations in connection with the vesting of shares subject to a Restricted Stock Award and Restricted Stock Units (RSUs) of the Issuer.
Prior to these sales, Milsten was awarded 11,198 RSUs on June 3, 2024, which vest in four equal annual installments subject to continued service. These RSUs do not include Performance Stock Units that vest based on performance metrics, which are expected to be reported upon achievement.
Following the transactions, Milsten's direct holdings in e.l.f. Beauty decreased to 78,992 shares. Additionally, the executive has an indirect interest in 22,761 shares held by the Milsten/Conner Trust dated October 17, 2008, which includes 52,971 RSUs.
Investors monitoring insider transactions may note that these sales represent a significant divestment by a key executive within e.l.f. Beauty, Inc. The company, known for its affordable cosmetics and skincare products, has its shares publicly traded on the New York Stock Exchange under the ticker symbol ELF.
In other recent news, e.l.f. Beauty's financial performance has been strong, with net sales surpassing $1 billion, a 77% growth in net sales, and a 101% increase in adjusted EBITDA for the fiscal year 2024. The company's stock target has been raised by $45, reflecting the company's growth prospects, particularly in international markets and skincare segments. Analyst firms such as DA Davidson, Truist Securities, and TD Cowen have maintained a Buy rating on the company's stock. DA Davidson added e.l.f. Beauty to its 'Best-of-Breed Bison' list, recognizing the company's financial strength. Truist Securities raised the company's stock price target from $200 to $210, while TD Cowen maintained a $190 stock price target. Despite a slight reduction in the price target to $210, Piper Sandler maintained an Overweight rating on e.l.f. Beauty's stock, emphasizing the company's significant growth potential. These recent developments highlight the confidence of analysts in e.l.f. Beauty's strategic initiatives and its ability to capitalize on market opportunities.
InvestingPro Insights
As investors digest the news of Scott Milsten's stock sale, a look into e.l.f. Beauty's financial health and market performance can offer additional context. With a robust market capitalization of $9.93 billion, e.l.f. Beauty stands out in the cosmetics industry. The company's price-to-earnings (P/E) ratio, a measure of its current share price relative to its per-share earnings, is notably high at 76.86, indicating investor confidence in future earnings potential. This aligns with one of the InvestingPro Tips that highlights the company's low P/E ratio relative to near-term earnings growth.
Another metric that stands out is e.l.f. Beauty's impressive gross profit margin, reported at 70.72% for the last twelve months as of Q4 2024. This is a testament to the company's ability to maintain profitability despite costs, which is also underscored as an InvestingPro Tip. Additionally, the company's revenue has seen a remarkable growth of 76.89% over the same period, showcasing its ability to expand its market reach and sales.
For investors and analysts seeking a deeper dive into e.l.f. Beauty's financials and market predictions, there are 19 additional InvestingPro Tips available. These tips provide a granular analysis of the company's performance and outlook, which could be invaluable for making informed investment decisions. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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