The Estée Lauder Companies Inc. (EL): Among the Large-Cap Stocks Insiders Are Buying Recently

The Estée Lauder Companies Inc. (EL) has been in the spotlight recently, not only for its iconic beauty products but also for the insider buying activity that has been taking place. In this article, we will delve into the reasons behind this recent insider activity, the company's financial performance, and the potential risks and rewards of investing in EL at its current valuation.

Insider Buying Activity

Paul J Fribourg, a director of The Estée Lauder Companies Inc., has been actively purchasing shares in the company. Between November 15, 2024, and November 20, 2024, Fribourg bought a total of 487.8K shares for an average price of $64.42 each. This insider buying activity suggests that Fribourg, and potentially other insiders, have confidence in the company's future prospects.

Financial Performance

EL's financial performance has been mixed in recent quarters. The company reported EPS of $0.14 for Q1 2025, which exceeded analysts' expectations by 55.56%. However, the company also reported a net loss of $156 million for the quarter, compared to net earnings of $31 million in the same quarter last year. The company's revenue growth has been negative in recent years, with a revenue growth rate of -0.045 in the last 12 months.



Potential Risks and Rewards

Investing in EL at its current valuation presents both potential risks and rewards. On the one hand, the company's recent insider buying activity suggests that insiders have confidence in the company's future prospects. Additionally, EL's dividend yield of 1.68% is relatively attractive compared to other consumer staples stocks. On the other hand, the company's recent struggles in the Chinese market and its high debt level may pose risks to its financial health.



In conclusion, The Estée Lauder Companies Inc. (EL) has seen recent insider buying activity, which suggests that insiders have confidence in the company's future prospects. However, the company's financial performance has been mixed, with recent struggles in the Chinese market and a high debt level posing potential risks. Investors should carefully consider these factors and monitor the company's performance and developments in the market before making an investment decision.