Stock Performance Analysis : Ulta

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Stock Performance Analysis
Ulta’s stock performance from 2010 to the present has been positive. According to Yahoo Finance (n.d.), in Jan 2010 Ulta’ stock was around $19.40 per share and in January of 2015 the price per share was around $126.84. The company has experienced an increase of $137.88 from 2010 to 2015 which is a 610% percent increase. Ulta’s stocks have increased steadily over the past five and a half years, based on the highest closing price per year. The price per share was $34.95 in 2010 which increased to $69.63 in 2011. Then 2012 Ulta share prices rose to $100.28, the increase continued in 2013 with stocks reaching $128.85 and a slight decline in prices in 2014 with shares at $127.84. Presently, the highest close for 2015 thus far has been July with shares at $157.23. (Yahoo Finance, n.d.). Shareholders in 2012 received a cash dividend from Ulta totaling $63 million dollars another indicator of positive stock growth (MarketLine, 2014). In 2014, the company approved a $300 million share repurchase plan where they bought back 321,113 shares valued at about $40 million dollars (Ulta 2014 Annual Report, 2014). The success of a company and its stock is evident in Ulta’s ability and desire to repurchase their stock.
Company News
Company news such as new products or partnerships on effect whether or not their individuals invest in their stocks given this may have an impact on stock prices. Ulta faced a class action lawsuit in 2012 regarding employee practices. According to Ulta’s 2014 Annual Report (2014) former employees were suing the company in regards to Ulta violating “…labor laws and failed to provide plaintiff and members of the proposed class with full meal periods, paid rest breaks, certain wages, overtime c...

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...for 100 new stores this year. (Business Wire, 2015)
After careful analysis based on a variety of factors, Ulta is a company worth investing in. Ulta’s long standing history, their extensive product lines across multiple categories as well as their strong presence in their industry are all deciding factors of whether to invest or not . Other factors that may impact whether individuals consider Ulta a good investment is their substantial stock performance over the past five and a half years, their recent partnerships as well as analysts positive outlook on their stock performance in the coming years. Finally, the last factor is making a personal decision whether to invest or not given research and financial statistics. My personal consensus was that despite a minor loss, Ulta is a buy after researching and considering all the previously mentioned factors.
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