Making a noteworthy insider sell on September 21, Kecia Steelman, President and CEO at Ulta Beauty (NASDAQ:ULTA), is reported in the latest SEC filing.
What Happened: After conducting a thorough analysis, Steelman sold 2,000 shares of Ulta Beauty. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total transaction value is $1,091,765.
Ulta Beauty shares are trading down 0.4% at $561.75 at the time of this writing on Tuesday morning.
Get to Know Ulta Beauty Better
Ulta Beauty is the largest specialized beauty retailer in the US with more than 1,500 stores and e-commerce. The firm offers cosmetics (38% of 2025 sales), fragrances (13%), skin care (24%), and hair care products (19%). It also has salon services, including hair, makeup, skin, and brow, that account for 4% of its revenue and drive customer traffic. Outside of the US, Ulta operates premium beauty retailer Space NK (86 stores at year-end 2025 in the UK and Ireland), has franchised stores in Mexico, and a joint venture in the Middle East. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
Ulta Beauty: Financial Performance Dissected
Positive Revenue Trend: Examining Ulta Beauty's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.87% as of 31 July, 2026, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Evaluating Earnings Performance:
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Gross Margin: The company faces challenges with a low gross margin of 39.1%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Ulta Beauty's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 6.57.
Debt Management: Ulta Beauty's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.95.
Financial Valuation:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 20.32 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.9 suggests overvaluation in the eyes of investors, considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 13.46 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Why Pay Attention to Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
A Closer Look at Important Transaction Codes
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Ulta Beauty's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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