Why Did e.l.f. Beauty Plunge 9.49%? Lawsuit, Earnings Miss

On April 3, 2025, e.l.f. Beauty's stock experienced a significant drop of 9.49% in pre-market trading.

e.l.f. Beauty has recently faced a class action lawsuit alleging misleading financial statements, which has added to the company's challenges. This legal issue has contributed to the recent decline in investor confidence and stock performance.

Additionally, Piper Sandler has lowered its price target for e.l.f. Beauty from $102.00 to $90.00, maintaining an "overweight" rating. This adjustment reflects the firm's concerns about the company's financial outlook and market position.

e.l.f. Beauty's third-quarter earnings also fell short of expectations, further impacting its stock performance. The company's full-year outlook has been revised downward, leading to a sharp decline in share prices.

Overall, the combination of legal challenges, lowered price targets, and disappointing earnings has created a challenging environment for e.l.f. Beauty, contributing to the recent stock price decline.