Ulta Beauty Stock Story


USD 391.39  5.49  1.42%   

It looks like Sprouts Farmers will continue to recover much faster as its share price surged up 3.93% today to Ulta Beauty's 7.086%. As many millenniums are excited about consumer cyclical space, we are going to shadow both, Ulta Beauty and Sprouts Farmers as a potential short-term opportunity. We are going to analyze some of the competitive aspects of both Ulta Beauty and Sprouts.
Published over a month ago
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Ulta Beauty Current Investor Sentiment

Investor biases related to Ulta Beauty's public news can be used to forecast risks associated with investment in Ulta Beauty. The trend in average sentiment can be used to explain how an investor holding Ulta Beauty can time the market purely based on public headlines and social activities around Ulta Beauty. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Ulta Beauty's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Ulta Beauty's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Ulta Beauty's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Ulta Beauty.

Ulta Beauty Maximum Pain Price across 2022-07-01 Option Contracts

Ulta Beauty's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Ulta Beauty close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Ulta Beauty's options.
Should we be taking in Sprouts or Ulta Beauty?
By analyzing existing basic indicators between Ulta Beauty and Sprouts, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Sprouts with a short position in Ulta Beauty. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ulta Beauty has an asset utilization ratio of 386.84 percent. This suggests that the company is making $3.87 for each dollar of assets. An increasing asset utilization means that Ulta Beauty is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Ulta Beauty's Liquidity

Ulta Beauty financial leverage refers to using borrowed capital as a funding source to finance Ulta Beauty ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ulta Beauty financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Ulta Beauty's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Ulta Beauty, but it might be worth checking our own buy vs. sell analysis

Sale by George Mrkonic of 476 shares of Ulta Beauty

Legal trades by Ulta Beauty insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Ulta Beauty insider trading alert for sale of common stock by George Mrkonic, the corporate stakeholder, on 14th of June 2022. This event was filed by Ulta Beauty Inc with SEC on 2022-06-14. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On Ulta Beauty

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at Ulta Beauty revenue. Based on the latest financial disclosure, Ulta Beauty reported 8.63 B of revenue. This is 21.04% higher than that of the Consumer Cyclical sector and 38.96% lower than that of the Specialty Retail industry. The revenue for all United States stocks is 8.53% higher than that of Ulta Beauty. As for Sprouts Farmers we see revenue of 6.1 B, which is 56.86% lower than that of the Specialty Retail

Ulta Beauty8.63 Billion
Sector7.13 Billion
Sprouts6.1 Billion
8.6 B
Ulta Beauty
7.1 B
6.1 B

Our take on today Ulta Beauty rise

Current Market Risk Adjusted Performance is up to -0.02. Price may slip again. Ulta Beauty exhibits very low volatility with skewness of -0.85 and kurtosis of 2.84. However, we advise investors to further study Ulta Beauty technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ulta Beauty's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ulta Beauty's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Ulta Beauty Implied Volatility

Ulta Beauty's implied volatility exposes the market's sentiment of Ulta Beauty stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Ulta Beauty's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Ulta Beauty stock will not fluctuate a lot when Ulta Beauty's options are near their expiration.

The Bottom Line

When is the right time to buy or sell Ulta Beauty? Buying stocks such as Ulta Beauty isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Ulta Beauty at this time. The Ulta Beauty risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ulta Beauty.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Ulta Beauty. Please refer to our Terms of Use for any information regarding our disclosure principles.

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