On May 15, 2024, Tracey Travis, Executive Vice President and Chief Financial Officer of The Estee Lauder Companies Inc (EL, Financial), sold 14,493 shares of the company. The transaction was documented in a recent SEC Filing. This sale is part of a series of insider transactions over the past year, where there have been 4 insider sells and 1 insider buy.
The Estee Lauder Companies Inc (EL, Financial) is a global leader in prestige beauty, offering a wide range of products in skincare, makeup, fragrance, and hair care. The company owns a diverse portfolio of brands distributed internationally through both digital commerce and retail channels.
On the date of the sale, shares of The Estee Lauder Companies Inc were priced at $135.73, valuing the company with a market cap of approximately $49.63 billion. The price-earnings ratio stood at 77.76, significantly above both the industry median of 18.715 and the company's historical median.
According to the GF Value assessment, The Estee Lauder Companies Inc is currently significantly undervalued, with a price-to-GF-Value ratio of 0.62. The GF Value of $219.33 suggests a potential undervaluation of the stock.
The valuation metrics are derived from historical trading multiples such as the price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, adjusted by GuruFocus for past returns and growth, and supplemented with future business performance estimates from Morningstar analysts.
The insider's recent transaction follows a trend observed over the past year, indicating more insider selling than buying within the company. This pattern of insider activity can provide insights into the sentiment of key executives and decision-makers at The Estee Lauder Companies Inc.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
