Analyst downgrades trigger sharp selloff. Ulta Beauty, Inc. (ULTA) shares plunged 14.2% to $535.72 on Monday, erasing $3.9 billion in market capitalization. The beauty retailer is on track for its worst single-day decline in over a year.
Eight firms slash price targets post-earnings. The selloff follows a wave of analyst downgrades after the company’s recent quarterly results. Wells Fargo cut its price target to $475, while Oppenheimer lowered its target to $650 from $750 and JP Morgan reduced its target to $750 from $800. Canaccord Genuity maintained its Buy rating but kept its $799 target unchanged. The coordinated downgrades signal growing concern about the company’s near-term growth trajectory in the competitive beauty retail space.
Volume surges to 4.6x the daily average. Trading volume hit 2.74 million shares, 4.6 times the typical daily average, confirming broad-based selling pressure. The elevated activity suggests institutional repositioning rather than retail-driven volatility.
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