#7 - Ulta Beauty (NASDAQ:ULTA)
Ulta Beauty Inc. (NASDAQ: ULTA) announced a $2 billion share buyback program in March 2024. That’s exactly two years after the company announced a buyback of the same amount in 2022.
The company is the largest specialty beauty retailer in the United States. The company’s rapid growth and success are due, in part, to its world-class loyalty program, which had approximately 43 million members at the end of 2023. Ulta also leverages omnichannel opportunities with retailers such as Target Corporation (NYSE: TGT) to stay top-of-mind with its customers.
Ulta has been a recovery stock since crashing hard in 2020. ULTA stock was up approximately 60% in the last five years, heading into its quarterly earnings report in March 2024. Despite a double beat, the stock fell sharply on weak guidance for the first quarter of its FY2024. The company is also planning to launch operations in Mexico, but it seems analysts were hoping for more specifics than what the company offered.
About Ulta Beauty
Ulta Beauty, Inc operates as a specialty beauty retailer in the United States. The company offers branded and private label beauty products, including cosmetics, fragrance, haircare, skincare, bath and body products, professional hair products, and salon styling tools through its Ulta Beauty stores, shop-in-shops, Ulta.com website, and its mobile applications.
Read More - Current Price
- $338.38
- Consensus Rating
- Hold
- Ratings Breakdown
- 12 Buy Ratings, 11 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $420.71 (24.3% Upside)
One final note about share buybacks. The dollar amount companies announce is not always the actual amount they buy back. You'll typically hear language like “authorized to buy back up to ..." which means the company's board of directors gave the company the right, but not the obligation, to buy back up to the announced amount. In some cases, a company won't buy back the entire amount authorized.
Share buybacks are one way a company rewards shareholders and boosts its share price. However, it shouldn't be the only reason you consider owning a stock. You'll want to ensure the company is still growing revenue and, more importantly, earnings.
MarketBeat has a free tool that keeps investors updated on the companies that have issued share buybacks within the current calendar year. The tool also retains a list of share buyback announcements from the prior year.
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