Eagle Capital Management Reduces $63M in The Estée Lauder Companies Inc. ($EL)
Eagle Capital Management reduced its holdings in Estée Lauder by about 9%, now holding 7.9 million shares.
Key Points
- Eagle Capital Management cut its Estée Lauder stake by 796,934 shares, reducing its position to 7,932,601 shares valued at $698.2 million.
- Estée Lauder shares traded at $88.02 with a market cap of approximately $32.45 billion and a forward P/E of 28.1.
- Analysts have mixed views, with Citigroup maintaining a 'buy' rating and a $110 target, while Barclays holds at $75.
Important disclosure: Podchat is not a registered investment adviser, broker-dealer, or financial planner. This article is for informational and educational purposes only and is not a recommendation to buy, sell, or hold any security. Content may be generated by automated systems using public filings, market data, and third-party sources, and may contain errors or omissions. Investing involves risk, including possible loss of principal. Past performance, insider activity, analyst ratings, price targets, sentiment scores, and hypothetical or backtested results are not guarantees of future performance. Please do your own research and consult a qualified professional before making investment decisions.
Eagle Capital Management has trimmed its position in The Estée Lauder Companies Inc. (NYSE:EL) by 796,934 shares, according to its latest Form 13F filing with the SEC. This reduction brings Eagle Capital's holdings to 7,932,601 shares, valued at approximately $698.2 million as of the reporting period.
What Changed in Eagle Capital Management's Estée Lauder Position
Eagle Capital Management reduced its stake in Estée Lauder by about 9.1%, cutting 796,934 shares from its portfolio. The firm now holds 7,932,601 shares, down from 8,729,535 shares previously. The value of the position stands at roughly $698.2 million.
Other Institutional Activity in Estée Lauder
BlackRock, Inc. increased its holdings in Estée Lauder by 474,250 shares, ending with a total of 18,545,509 shares valued at about $1.33 billion. FMR LLC also boosted its stake significantly by 1,765,200 shares, bringing its total to 18,113,752 shares worth approximately $1.3 billion. Meanwhile, Bank of America Corp /DE/ made a substantial increase, adding 12,526,471 shares to reach a total of 13,843,765 shares, valued at $993.6 million.
The Estée Lauder Companies Inc. Stock Down 23.4%
Shares of Estée Lauder (NYSE:EL) traded near $88.02. The company has a market cap of approximately $32.45 billion and a forward P/E ratio of 28.1. Its beta is 1.249, indicating moderate volatility compared to the market. The stock's 52-week range is between $66.22 and $121.64, with a 50-day moving average of $80.03 and a 200-day moving average of $93.27.
$EL stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
For its most recent quarter, Estée Lauder reported revenue of $14.83 billion, reflecting a growth of 4.6%. Despite this, the company posted a net margin of -1.67% and a return on equity of -5.95%, with an EPS of -$0.70. The next earnings announcement is scheduled for May 1, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
-
Forward outlook
6 target raises vs 2 cuts.
-
EPS & revenue
EPS beat estimates by 36.2%. Revenue missed estimates by 2.3%.
-
Profit surprise
EBITDA missed by 28 percent. Operating income missed by 38 percent.
-
Pre-earnings setup
Expectations were about average.
-
Analyst signal
6 target raises, 2 target cuts.
-
Earnings quality
Gross margin down 3.9 points. Operating margin up 1.0 points. Positive free cash flow.
Earnings Call Summary
Estée Lauder returned to growth with a three percent organic sales increase in the quarter, with strong performance in Mainland China and fragrance. The company expanded operating margins by 300 basis points and beat earnings per share expectations by raising unit sales and executing cost cuts through their restructuring plan. Management emphasized that new product launches, expanded online channels like Amazon and TikTok Shop, and stronger consumer demand in China are driving momentum heading into the holiday season.
Guidance The company expects flat to three percent organic sales growth for the full year. Management said the first half should be stronger because of easier comparisons, but the second half will face tougher comparisons to last year. They are investing in consumer-facing items like stores and marketing while reducing other costs to improve profit margins over time.
Neutral report. Results and guidance were close to expectations, with limited evidence of a reset either way.
Dividend
Estée Lauder pays an annual dividend of $1.40 per share, yielding 1.59% at current prices. The payout ratio is notably high at 471.43%, indicating the company returns a large portion of its earnings to shareholders.
Insider Buying and Selling at The Estée Lauder Companies Inc.
Recent insider activity includes purchases by Paul Fribourg, Eric Louis Zinterhofer, and Barry Sternlicht, each acquiring shares at $80.28 on May 15, 2026. Aerin Lauder made a significant purchase of 4,768,846 shares on April 8, 2026, while Ronald Lauder, Chairman of Clinique Labs, LLC, sold the same amount on the same date.
Analysts Set New Price Targets
On May 15, 2026, Piper Sandler assumed coverage with a 'buy' rating and a $95 target. Citigroup maintained its 'buy' rating with a $110 target on May 22, 2026. Meanwhile, Barclays stuck to a 'hold' rating with a $75 target on May 5, 2026. The consensus among analysts is a 'buy' recommendation, with a mean target price of $95.67.
About The Estée Lauder Companies Inc.
The Estée Lauder Companies Inc., based in New York, is a global leader in beauty products, offering a wide range of skincare, makeup, fragrance, and hair care items. Founded in 1946, the company markets products under well-known brands such as La Mer, Jo Malone London, and Estée Lauder. With over 40,000 employees, it operates in the Consumer Defensive sector, specifically in the Household & Personal Products industry.
Bottom Line
Eagle Capital Management's decision to trim its stake in Estée Lauder highlights a strategic shift, though the firm still holds a substantial position. Investors keep an eye on such filings as they provide insights into institutional sentiment. However, it's important to remember that 13F filings reflect past positions and may not indicate current investment strategies.
Get The Estée Lauder Companies Inc. alerts
New 13F filings, insider trades, and analyst moves on $EL, sent to your inbox. Free, and you can unsubscribe anytime.
This instant news alert was generated by automated narrative technology and financial data from Podchat and public regulatory filings. It is for informational purposes only and is not financial advice.