Akhil Shrivastava, the Executive Vice President and Chief Financial Officer of Estee Lauder Companies Inc. (NYSE:EL), recently acquired shares in the company, according to a filing with the Securities and Exchange Commission. The transaction, dated November 14, 2024, involved the purchase of 1,000 shares of Estee Lauder's Class A common stock at a price of $65 per share, totaling $65,000.
Following this purchase, Shrivastava's direct ownership in the company stands at approximately 1,681 shares. This transaction reflects his continued investment in the company, where he holds a significant leadership position.
In other recent news, Estée Lauder Companies Inc. has experienced a series of significant developments. The beauty product giant recently announced amendments to its Share Incentive Plan, extending its term until November 8, 2034, and increasing the number of shares available for issuance by 12 million. The company's first-quarter earnings for fiscal 2025 revealed an adjusted earnings per share of $0.14, surpassing the previous year's $0.11. However, Estée Lauder withdrew its full-year outlook for fiscal 2025 and reduced its quarterly dividend from $0.66 to $0.35 per share due to a 5% decline in organic sales, primarily attributed to downturns in mainland China, global travel retail, and Hong Kong SAR.
In response to these financial results, analyst firms B.Riley, TD Cowen, and Telsey Advisory Group reduced their price targets, while JPMorgan downgraded the stock from Overweight to Neutral. These changes reflect concerns about Estée Lauder's performance, particularly in the Asia-Pacific region.
In terms of corporate governance, Estée Lauder recently elected four Class I directors and ratified the appointment of PricewaterhouseCoopers LLP as the company's independent auditors. The company also announced significant leadership changes, appointing Stéphane de La Faverie as the new President and CEO, effective January 1, 2025, and Akhil Shrivastava taking over as CFO. These developments are part of the company's ongoing efforts to navigate the competitive beauty industry landscape.
InvestingPro Insights
Akhil Shrivastava's recent purchase of Estee Lauder (NYSE:EL) shares aligns with several key insights from InvestingPro. The CFO's decision to invest $65,000 in company stock comes at a time when EL is trading near its 52-week low, with the stock price having fallen significantly over the last three months. This insider buying could be seen as a vote of confidence in the company's future prospects.
InvestingPro data shows that Estee Lauder's current market capitalization stands at $22.94 billion, reflecting the recent stock price movements. Despite the challenging market conditions, the company maintains impressive gross profit margins of 72.36% for the last twelve months as of Q1 2025, demonstrating its ability to maintain pricing power in the competitive beauty industry.
InvestingPro Tips highlight that Estee Lauder has maintained dividend payments for 29 consecutive years, showcasing its commitment to shareholder returns even in turbulent times. The current dividend yield is 2.16%, which may be attractive to income-focused investors.
It's worth noting that while the stock has faced headwinds, with a 51.72% price decline over the past six months, analysts predict the company will remain profitable this year. This forecast, combined with the CFO's recent stock purchase, suggests potential confidence in the company's ability to navigate current challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Estee Lauder, providing a deeper understanding of the company's financial health and market position.
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