On June 2, 2023, CEO Tarang Amin sold 34,208 shares of e.l.f. Beauty Inc (ELF, Financial), a leading cosmetics and skincare company. This insider sell comes amidst a year of significant insider selling activity for the company.
Who is Tarang Amin of e.l.f. Beauty Inc?
Tarang Amin is the Chairman and Chief Executive Officer of e.l.f. Beauty Inc. He has been with the company since 2014 and has played a crucial role in the growth and expansion of the brand. Under his leadership, e.l.f. Beauty has become a prominent player in the cosmetics and skincare industry, offering high-quality, affordable products to consumers.
e.l.f. Beauty Inc's Business Description
e.l.f. Beauty Inc is a cosmetics and skincare company that focuses on providing high-quality, affordable beauty products to consumers. The company offers a wide range of products, including makeup, skincare, and beauty tools, catering to various consumer needs and preferences. e.l.f. Beauty's mission is to make luxurious beauty accessible to everyone, and its products are available in leading retailers and online platforms.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, Tarang Amin has sold a total of 1,102,241 shares and purchased 0 shares. This trend of insider selling is consistent with the overall insider transaction history for e.l.f. Beauty Inc, which shows 0 insider buys and 48 insider sells over the past year.
Shares of e.l.f. Beauty Inc were trading at $103.5 apiece on the day of Tarang Amin's recent sell, giving the stock a market cap of $5,661.968 million. The price-earnings ratio is 94.69, which is higher than the industry median of 19.57 and higher than the company's historical median price-earnings ratio.
With a price of $103.5 and a GuruFocus Value of $48.12, e.l.f. Beauty Inc has a price-to-GF-Value ratio of 2.15. This means the stock is significantly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider sell by CEO Tarang Amin, along with the overall trend of insider selling at e.l.f. Beauty Inc, may raise concerns for investors. The stock's current valuation, as indicated by its price-to-GF-Value ratio, suggests that it is significantly overvalued. Investors should carefully consider these factors and conduct further research before making any investment decisions regarding e.l.f. Beauty Inc.
