Ulta Beauty (NASDAQ:ULTA) Sees Unusually-High Trading Volume – Still a Buy?

Shares of Ulta Beauty Inc. (NASDAQ:ULTA) saw unusually-high trading volume on Monday . Approximately 414,865 shares were traded during mid-day trading, a decline of 29% from the previous session’s volume of 585,005 shares.The stock last traded at $539.15 and had previously closed at $535.72.

Key Headlines Impacting Ulta Beauty

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

• Positive Sentiment: Solid top‑line performance and long‑term growth thesis — Q4 revenue and comp trends were strong and management emphasized strategic initiatives (Ulta Beauty Unleashed, digital investment and international expansion) that support a longer‑term recovery and investor thesis. MarketBeat: Ulta Beauty and an Ultimate Entry
• Positive Sentiment: Value/accumulation narrative — screens like Zacks’ style scores highlight ULTA as a long‑term value candidate, and some commentary notes heavy institutional ownership that may limit downside and support any recovery. Zacks: Why Ulta Beauty is a Top Value Stock
• Neutral Sentiment: Analyst stance mixed but not uniformly negative — Piper Sandler reiterated an Overweight rating even as other firms revised views; promotional activity (e.g., 21 Days of Beauty) and CEO media coverage are operational/brand developments that don’t immediately change the earnings picture. AmericanBankingNews: Piper Sandler Reiterates Overweight
• Negative Sentiment: Analyst price‑target cuts and downgrades — several firms trimmed targets (examples: JPMorgan, Morgan Stanley, Oppenheimer, TD Cowen) after the report, increasing near‑term selling pressure and reducing the stock’s near‑term upside expectations. AmericanBankingNews: Shares Gap Down on Analyst Downgrade
• Negative Sentiment: Guidance‑led selloff — coverage and market writeups report a 10%+ post‑earnings drop driven mainly by conservative FY guidance (lower comp‑growth assumptions and margin caution), which rattled traders despite the quarter’s topline strength. Blockonomi: ULTA Stock Plunges 10% Post‑Earnings

Analyst Ratings Changes

ULTA has been the topic of several recent analyst reports. Wells Fargo & Company boosted their target price on Ulta Beauty from $450.00 to $500.00 and gave the stock an “underweight” rating in a report on Monday, March 9th. DA Davidson boosted their price objective on Ulta Beauty from $625.00 to $650.00 and gave the stock a “buy” rating in a research note on Friday, December 5th. UBS Group restated a “buy” rating and issued a $810.00 price objective on shares of Ulta Beauty in a report on Friday. B. Riley Financial reaffirmed a “neutral” rating on shares of Ulta Beauty in a research note on Monday, December 8th. Finally, Piper Sandler reiterated an “overweight” rating and issued a $725.00 price target (down from $775.00) on shares of Ulta Beauty in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $671.27.

Ulta Beauty Price Performance

The company has a market cap of $23.34 billion, a P/E ratio of 20.54, a PEG ratio of 2.44 and a beta of 0.82. The company has a fifty day simple moving average of $665.60 and a 200-day simple moving average of $587.65.

Ulta Beauty (NASDAQ:ULTA) last announced its quarterly earnings data on Thursday, March 12th. The specialty retailer reported $8.01 EPS for the quarter, beating analysts’ consensus estimates of $7.93 by $0.08. The company 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 43.56% and a net margin of 9.31%.The company’s quarterly revenue was up 11.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $8.46 EPS. Ulta Beauty has set its FY 2026 guidance at 28.050-28.550 EPS. On average, analysts anticipate that Ulta Beauty Inc. will post 23.96 EPS for the current year.

Hedge Funds Weigh In On Ulta Beauty

Hedge funds and other institutional investors have recently modified their holdings of the stock. Norges Bank acquired a new stake in Ulta Beauty during the 4th quarter worth about $430,963,000. Holocene Advisors LP boosted its holdings in shares of Ulta Beauty by 339.6% in the third quarter. Holocene Advisors LP now owns 379,939 shares of the specialty retailer’s stock worth $207,732,000 after buying an additional 293,516 shares during the period. Andra AP fonden boosted its holdings in shares of Ulta Beauty by 351,900.0% in the third quarter. Andra AP fonden now owns 228,800 shares of the specialty retailer’s stock worth $125,096,000 after buying an additional 228,735 shares during the period. Corient Private Wealth LLC increased its position in shares of Ulta Beauty by 1,837.4% in the fourth quarter. Corient Private Wealth LLC now owns 230,998 shares of the specialty retailer’s stock worth $139,756,000 after acquiring an additional 219,075 shares in the last quarter. Finally, Invesco Ltd. increased its position in shares of Ulta Beauty by 33.6% in the third quarter. Invesco Ltd. now owns 840,383 shares of the specialty retailer’s stock worth $459,479,000 after acquiring an additional 211,485 shares in the last quarter. Institutional investors and hedge funds own 90.39% of the company’s stock.

Ulta Beauty Company Profile

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.