Lululemon Athletica Inc. (NASDAQ:LULU) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Monday.
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. However, estimates have been stable lately, ahead of the company's third quarter earnings release. Also, 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.”
Other research analysts have also recently issued reports about the company. KeyCorp lifted their price target on Lululemon Athletica from $80.00 to $85.00 and gave the company an “overweight” rating in a report on Tuesday, August 2nd. Wedbush lifted their price target on Lululemon Athletica from $82.00 to $84.00 and gave the company an “outperform” rating in a report on Friday, September 2nd. Goldman Sachs Group Inc. reaffirmed a “sell” rating and issued a $46.00 price target on shares of Lululemon Athletica in a report on Monday, October 17th. DA Davidson reaffirmed a “neutral” rating and issued a $80.00 price target on shares of Lululemon Athletica in a report on Wednesday, August 31st. Finally, Citigroup Inc. cut their price target on Lululemon Athletica from $89.00 to $85.00 and set a “buy” rating for the company in a report on Friday, September 2nd. Five research 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 assigned a strong buy rating to the company. The company presently has an average rating of “Hold” and a consensus target price of $70.45.
Lululemon Athletica (NASDAQ:LULU) traded down 1.24% during trading on Monday, hitting $57.27. 885,109 shares of the stock traded hands. The stock has a market cap of $7.85 billion, a P/E ratio of 29.38 and a beta of 0.46. Lululemon Athletica has a 52 week low of $44.62 and a 52 week high of $81.81. The firm’s 50-day moving average is $56.98 and its 200 day moving average is $67.43.
Lululemon Athletica (NASDAQ:LULU) last issued its quarterly earnings data on Thursday, September 1st. The apparel retailer reported $0.38 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.38. The company earned $514.52 million during the quarter. Lululemon Athletica had a return on equity of 23.73% and a net margin of 12.28%. The firm’s revenue was up 13.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.34 earnings per share. Equities research analysts forecast that Lululemon Athletica will post $2.13 earnings per share for the current fiscal year.
Institutional investors have recently bought and sold shares of the stock. AMP Capital Investors Ltd increased its position in Lululemon Athletica by 3.4% in the first quarter. AMP Capital Investors Ltd now owns 30,291 shares of the apparel retailer’s stock valued at $2,054,000 after buying an additional 1,000 shares in the last quarter. Envestnet Asset Management Inc. increased its position in Lululemon Athletica by 123.6% in the first quarter. Envestnet Asset Management Inc. now owns 28,947 shares of the apparel retailer’s stock valued at $1,960,000 after buying an additional 16,004 shares in the last quarter. Seven Eight Capital LLC increased its position in Lululemon Athletica by 581.6% in the first quarter. Seven Eight Capital LLC now owns 4,805 shares of the apparel retailer’s stock valued at $325,000 after buying an additional 4,100 shares in the last quarter. Squarepoint Ops LLC purchased a new position in Lululemon Athletica during the first quarter valued at approximately $600,000. Finally, BNP Paribas Arbitrage SA increased its position in Lululemon Athletica by 14.3% in the second quarter. BNP Paribas Arbitrage SA now owns 3,917 shares of the apparel retailer’s stock valued at $289,000 after buying an additional 491 shares in the last quarter. Hedge funds and other institutional investors own 91.36% of the company’s stock.
About Lululemon Athletica
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.