E.l.f. Beauty Inc. (NYSE:ELF) shares are sliding Monday, falling nearly 8% and hitting a new 52-week low of $55.35 as analysts turn more cautious on the stock.

The broader market remained positive, with the NASDAQ Composite up 0.45% and the S&P 500 gaining 0.34%.

The sell-off follows a downgrade from Morgan Stanley on May 1, when the firm cut ELF to equal weight from overweight and lowered its price target to $67 from $80.

Investors are now focused on the company's Q4 earnings report due May 20. Wall Street expects EPS of 23 cents on revenue of $423.57 million. The company has topped EPS estimates in each of the past four quarters.

Short Interest Dynamics

Short sellers have adjusted their bets recently. Short interest fell from 8 million to 7.4 million shares. Currently, 14.75% of the company’s float is held short.

Average daily volume stands at 2.54 million shares. It would take shorts 2.91 days to cover their positions.

ELF Stock Price Activity: e.l.f. Beauty shares were down 8.15% at $55.90 at the time of publication on Monday, according to Benzinga Pro data.

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