Shares of cosmetics retail chain Ulta Beauty (NASDAQ: ULTA) plunged 25.7% in May, according to data provided by S&P Global Market Intelligence. The analyst community grew more cautious about the company during the month, and its financial results fell short of expectations. Both factors contributed to the plunge.

The largest piece of Ulta Beauty's decline came on May 25, when it reported results for its fiscal 2023 first quarter, which ended April 29. However, even before that event, the shares were already down more than 10% for the month. Contributing to the decline was commentary from Rupesh Parikh of Oppenheimer. According to The Fly, Parikh said he was more worried about Ulta Beauty's profitability than he was worried about its sales.

On May 19, Parikh lowered his price target for Ulta Beauty stock from $600 per share to $575 per share. Many investors look to Wall Street analysts  for guidance, and Parikh's commentary and target price cut caused a minor sell-off of the stock.

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Source Fool.com