Zacks Investment Research upgraded shares of Lululemon Athletica Inc. (NASDAQ:LULU) from a sell rating to a hold rating in a research report released on Tuesday morning.
According to Zacks, “Lululemon remains prone to unfavorable currency movements, which also played spoilsport in the fiscal second quarter 2016. Despite a heartening outlook for the fiscal and the third quarter, the persistence of currency woes can hurt future results. Moreover, the fading popularity of athleisure wear is likely to take a toll on the company’s performance as denims are back in vogue with new styles and patterns attracting shoppers. Intense competition from other players also remains a headwind. Estimates have been trending down ahead of the company's third quarter earnings release. However, Lululemon exhibits immense long-term growth opportunity based on its potential to expand square footage and enhance its business globally. The company’s new strategy that outlines four major areas of growth, aimed at doubling revenue and more than doubling earnings by 2020, also bodes well.”
Several other equities analysts have also recently weighed in on LULU. Citigroup Inc. raised their price target on shares of Lululemon Athletica from $78.00 to $89.00 and gave the company a buy rating in a research report on Friday, July 29th. Jefferies Group reaffirmed a buy rating on shares of Lululemon Athletica in a research report on Monday, August 1st. KeyCorp raised their price target on shares of Lululemon Athletica from $80.00 to $85.00 and gave the company an overweight rating in a research report on Tuesday, August 2nd. Telsey Advisory Group increased their price objective on shares of Lululemon Athletica from $82.00 to $92.00 and gave the company an outperform rating in a research note on Monday, August 15th. Finally, Oppenheimer Holdings Inc. reiterated an outperform rating and issued a $90.00 price objective on shares of Lululemon Athletica in a research note on Friday, August 26th. Five investment analysts have rated the stock with a sell rating, eleven have issued a hold rating, twenty-two have assigned a buy rating and one has given a strong buy rating to the stock. The company currently has a consensus rating of Hold and a consensus price target of $70.45.
Shares of Lululemon Athletica (NASDAQ:LULU) opened at 57.91 on Tuesday. Lululemon Athletica has a one year low of $44.62 and a one year high of $81.81. The company has a market cap of $7.94 billion, a PE ratio of 29.71 and a beta of 0.46. The stock’s 50 day moving average price is $57.06 and its 200-day moving average price is $67.48.
Lululemon Athletica (NASDAQ:LULU) last announced its quarterly earnings results on Thursday, September 1st. The apparel retailer reported $0.38 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.38. Lululemon Athletica had a net margin of 12.28% and a return on equity of 23.73%. The business had revenue of $514.52 million for the quarter. During the same period in the previous year, the business posted $0.34 EPS. Lululemon Athletica’s revenue was up 13.6% compared to the same quarter last year. On average, analysts expect that Lululemon Athletica will post $2.13 EPS for the current year.
A number of hedge funds have recently made changes to their positions in the stock. Price T Rowe Associates Inc. MD boosted its stake in shares of Lululemon Athletica by 18.6% in the third quarter. Price T Rowe Associates Inc. MD now owns 104,499 shares of the apparel retailer’s stock worth $6,372,000 after buying an additional 16,356 shares in the last quarter. Credit Suisse AG boosted its stake in shares of Lululemon Athletica by 28.8% in the third quarter. Credit Suisse AG now owns 196,005 shares of the apparel retailer’s stock worth $11,952,000 after buying an additional 43,812 shares in the last quarter. Verition Fund Management LLC acquired a new stake in shares of Lululemon Athletica during the third quarter worth approximately $713,000. Caisse DE Depot ET Placement DU Quebec acquired a new stake in shares of Lululemon Athletica during the third quarter worth approximately $823,000. Finally, KCM Investment Advisors LLC boosted its stake in shares of Lululemon Athletica by 4.4% in the third quarter. KCM Investment Advisors LLC now owns 8,260 shares of the apparel retailer’s stock worth $504,000 after buying an additional 350 shares in the last quarter. 91.60% of the stock is owned by institutional investors and hedge funds.
Lululemon Athletica Company Profile
Lululemon Athletica Inc is a designer, distributor and retailer of technical athletic apparel. The Company’s segments include Company-operated stores, Direct to consumer and Other. The Company offers a line of apparel and accessories for women, men and female youth. Its apparel assortment includes items, such as pants, shorts, tops and jackets designed for healthy lifestyle activities and athletic pursuits, such as yoga, running, other sweaty pursuits and athletic wear for female youth.