Advisory Firm Modifies Exposure, Sells $7 Million Worth of Cosmetics Stock, According to Recent Filing

In its 13F filing reported on November 10, 2025, Jacobson & Schmitt Advisors disclosed a sale of 65,673 shares of e.l.f. Beauty (NYSE:ELF) during Q3 2025, reducing its position by $7.04 million.

What Happened

According to a November 10, 2025, Securities and Exchange Commission (SEC) filing, Jacobson & Schmitt Advisors sold 65,673 shares of e.l.f. Beauty during the third quarter. The transaction reduced the fund’s stake to 140,420 shares, with a post-trade value of $18.60 million. The position accounted for 3.19% of the firm’s approximately $583 million in reportable U.S. equity holdings at quarter end.

What Else to Know

Following the sell, e.l.f. Beauty represents 3.19% of Jacobson & Schmitt Advisors’ 13F AUM, down from 4.55% in the previous quarter.

Top holdings after the filing:

• NASDAQ:IUSB: $35.68 million (6.1% of AUM)
• NYSE:APH: $30.73 million (5.3% of AUM)
• NASDAQ:AMZN: $27.98 million (4.8% of AUM)
• NASDAQ:APP: $21.01 million (3.6% of AUM)
• NASDAQ:MSFT: $20.84 million (3.6% of AUM)

As of November 10, 2025, shares were priced at $79.85, down 40.48% over the past year; shares have underperformed the S&P 500 by 45.59 percentage points.

Company Overview

Company Snapshot

The company distributes its products through a combination of national and international retailers, direct-to-consumer e-commerce channels in the United States, and international distributors.

• Offers cosmetics and skincare products under brands such as e.l.f. Cosmetics, e.l.f. Skin, Well People, and Keys Soulcare, distributed through retail partners and direct-to-consumer e-commerce channels.
• Generates revenue by designing, marketing, and selling beauty and personal care products globally, focusing on both wholesale and direct online sales models.
• Serves a broad consumer base, targeting value-conscious beauty shoppers across the United States and international markets.

Foolish Take

Jacobson & Schmitt Advisors, a Wisconsin-based financial advisory firm, recently sold more than $7 million worth of ELF stock. Here's why it matters to average investors.

ELF stock has endured a tough stretch recently. Shares have plummeted by 41% over the last 12 months. Compare that to the S&P 500, which has generated a total return of 16% over the same period.

However, on a longer timeframe, ELF still has some impressive performance stats.

Over the last five years, ELF stock rose by 258%, with a compound annual growth rate (CAGR) of 29.8%. The S&P 500, over the same stretch, has generated a total return of 109% with a CAGR of 15.8%.

In other words, ELF's tough 2025 is more than balanced out by its incredible performance from 2020-2024.

Nevertheless, as this transaction demonstrates, some investors have turned bearish on ELF. Major reasons why include:

• The impact of tariffs (many of ELF's products are imported from China)
• Slowing organic sales figures and disappointing earnings guidance
• Sell-side analyst downgrades

Retail investors should take note of this sale, as it is a sign that institutional investors have soured on ELF. At the same time, some may see opportunity in ELF stock, particularly if trade policy shifts and tariffs are reduced or rescinded.

Glossary

13F filing: A quarterly report filed by institutional investment managers disclosing their U.S. equity holdings.

Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.

Reportable assets: Investments that must be disclosed in regulatory filings, such as those required in a 13F filing.

Stake: The amount of ownership or shares held in a particular company by an investor or fund.

Top holdings: The largest investments in a fund’s portfolio, often ranked by value or percentage of AUM.

Trailing the S&P 500: Underperforming the S&P 500 index over a specified period.

Direct-to-consumer: Selling products directly to customers, bypassing traditional retail channels.

Wholesale: Selling goods in large quantities, typically to retailers or distributors rather than end consumers.

Value-conscious: Consumers who prioritize getting the best value for their money when making purchases.

TTM: The 12-month period ending with the most recent quarterly report.

Jake Lerch has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and e.l.f. Beauty. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.