Ulta Beauty (NASDAQ:ULTA) Shares Gap Down After Analyst Downgrade

Ulta Beauty Inc. (NASDAQ:ULTA) shares gapped down before the market opened on Friday after TD Cowen lowered their price target on the stock from $775.00 to $750.00. The stock had previously closed at $624.70, but opened at $566.28. TD Cowen currently has a buy rating on the stock. Ulta Beauty shares last traded at $561.3270, with a volume of 660,252 shares changing hands.

A number of other research analysts also recently issued reports on the company. B. Riley Financial reissued a “neutral” rating on shares of Ulta Beauty in a research note on Monday, December 8th. Zacks Research cut Ulta Beauty from a “strong-buy” rating to a “hold” rating in a report on Friday, February 6th. Jefferies Financial Group started coverage on Ulta Beauty in a report on Wednesday, January 14th. They set a “hold” rating and a $700.00 price target on the stock. Bank of America raised their price objective on shares of Ulta Beauty from $610.00 to $685.00 and gave the stock a “neutral” rating in a research report on Thursday, January 8th. Finally, DA Davidson boosted their target price on shares of Ulta Beauty from $625.00 to $650.00 and gave the company a “buy” rating in a research report on Friday, December 5th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Ulta Beauty currently has a consensus rating of “Moderate Buy” and an average price target of $637.12.

Ulta Beauty News Roundup

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

• Positive Sentiment: Q4 revenue and digital strength — Ulta posted $3.9B in Q4 sales (+11.8% YoY) and modest beats on revenue and EPS, driven in part by double‑digit e‑commerce growth and AI personalization efforts that boosted online demand. Press Release
• Positive Sentiment: Digital / younger customer strategy — Management emphasized investments in AI and a TikTok‑led digital push under new leadership to attract younger, affluent shoppers, a strategy that analysts say could drive longer‑term customer acquisition. Reuters: TikTok push
• Neutral Sentiment: Product/partnership catalysts — New exclusives (e.g., Rare Beauty rollout, Luna Bronze expansion) and promotional events supported traffic and higher average ticket, but these are incremental versus the margin and guidance story. Yahoo: Product launches
• Negative Sentiment: Guidance disappointed on profitability and comps — Ulta’s FY2026 guidance signaled slower comparable‑store sales and profit pressure; management flagged increased advertising and other investments that will compress margins. That guidance drove the bulk of the market reaction. Reuters: Guidance
• Negative Sentiment: Margin and cost pressure in Q4 — Operating margin and EPS declined YoY as SG&A rose (~23% YoY) from higher marketing, incentive comp and strategic spend; investors are worried about deleverage if sales slow. QuiverQuant: Margin analysis

Institutional Trading of Ulta Beauty

Several hedge funds have recently bought and sold shares of ULTA. Vanguard Group Inc. raised its holdings in Ulta Beauty by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 5,376,848 shares of the specialty retailer’s stock worth $3,253,047,000 after buying an additional 23,434 shares during the last quarter. State Street Corp grew its holdings in shares of Ulta Beauty by 2.5% during the fourth quarter. State Street Corp now owns 2,025,565 shares of the specialty retailer’s stock valued at $1,225,487,000 after buying an additional 50,305 shares during the last quarter. Sanders Capital LLC grew its holdings in shares of Ulta Beauty by 8.9% during the third quarter. Sanders Capital LLC now owns 1,263,820 shares of the specialty retailer’s stock valued at $690,994,000 after buying an additional 103,540 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Ulta Beauty by 1.8% during the fourth quarter. Geode Capital Management LLC now owns 1,240,210 shares of the specialty retailer’s stock worth $747,587,000 after acquiring an additional 21,947 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. increased its position in shares of Ulta Beauty by 0.3% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 974,223 shares of the specialty retailer’s stock worth $589,415,000 after acquiring an additional 2,463 shares in the last quarter. Institutional investors and hedge funds own 90.39% of the company’s stock.

Ulta Beauty Stock Performance

The company has a market cap of $24.79 billion, a price-to-earnings ratio of 21.44, a price-to-earnings-growth ratio of 3.04 and a beta of 0.82. The stock’s fifty day moving average is $667.28 and its two-hundred day moving average is $586.77.

Ulta Beauty (NASDAQ:ULTA) last released its quarterly earnings results on Thursday, March 12th. The specialty retailer reported $8.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.93 by $0.08. The business had revenue of $3.90 billion during the quarter, compared to the consensus estimate of $3.81 billion. Ulta Beauty had a return on equity of 46.33% and a net margin of 9.93%.The company’s quarterly revenue was up 11.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $8.46 EPS. Ulta Beauty has set its FY 2026 guidance at 28.050-28.550 EPS. On average, equities research analysts expect that Ulta Beauty Inc. will post 23.96 EPS for the current year.

About Ulta Beauty

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.