Form 144s come in handy when a company insider or affiliate intends to sell shares in a large amount - usually 5,000 - or of a high value - more than $50,000. This year, a number of companies have seen insiders flocking to brokers and filing intentions to sell. On a separate note, the billion-dollar beauty industry is picking up pace and rising post the COVID-19 pandemic.
One candidate for both situations is Ulta Beauty (ULTA: US), a retail company that distributes beauty and cosmetic products. Founded as a salon in Illinois, USA, the company has a history dating back to 1990 and went public in 2007. Present day, the company’s stock is a top candidate on lists about the best beauty stocks for 2022.
Three forms in a month
On September 2, 2022, two insiders at Ulta filed Form 144s: namely David C. Kimbell, the company’s CEO, and a board director. These forms were later followed by another insider’s filing five days later. All three forms by the insiders were filed via the broker, Charles Schwab & Co Inc
Kimbell has served as Ulta’s Insider since 2014 when he first joined as a Chief Marketing Officer. He became President in 2019 and later appointed CEO in Jun '21. His intention to sell ULTA shares is his first ever Form 144 since joining Ulta, although he’s frequently traded company stock in the past. He filed the intention to sell 14,783 shares worth almost $6.25 million.
Joining the CEO was a company director, Catherine Ann Halligan, who has been on the board since 2012. On the same day as Kimbell, Director Halligan filed her form for 200 shares worth $84,616, under The Catherine Halligan Rev Trust. She later sold a larger number of shares - 276 to be exact, worth $123,058 - on September 8.
Chief level officer, Anita Jane Ryan, who has been at Ulta since 2016, filed a form later on September 7. Her intention was to sell 594 shares, valued at $263,741.
Earnings and analysts' rating
On August 25, 2022, the company disclosed its second-quarter earnings for fiscal year: The quarter saw a rise of 16.8% in net sales, while company sales surged by 14.4%. Considering Ulta’s performance during the six months of fiscal year 2022, net sales have gone up to $4.6 billion, marking a rise of 18.9% year-on-year.
Furthermore, Ulta beauty reported statistics from its ongoing share repurchase program. The company had repurchased up to 797,994 shares in the quarter, valued at nearly $301.6 million. This left behind almost $1.6 billion worth of stock yet to be bought back, as per the $2 billion repurchase agreement made active in March 2022.
In the past 6 months, ULTA’s stock price is up by 23.88% and is currently valued at $442.90 per share. On September 5, 2022, ULTA stock was rated a ‘Moderate buy’ by multiple analysts, including Goldman Sachs and UBS Group. Aside, from this Ulta’s stock is also a favorite from the beauty sector that many investors can keep an eye on for the ongoing year.