Lululemon Athletica (NASDAQ:LULU) Stock Price Down 1.9% After Analyst Downgrade

Lululemon Athletica Inc. (NASDAQ:LULU) fell 1.9% on Tuesday after Raymond James lowered their price target on the stock from $350.00 to $325.00. Raymond James currently has an outperform rating on the stock. Lululemon Athletica traded as low as $252.00 and last traded at $254.59. 681,628 shares traded hands during trading, a decline of 68% from the average session volume of 2,127,189 shares. The stock had previously closed at $259.47.

Several other research firms also recently commented on LULU. TD Securities raised their price objective on Lululemon Athletica from $375.00 to $382.00 and gave the stock a “buy” rating in a research note on Friday, August 30th. Guggenheim decreased their price target on Lululemon Athletica from $525.00 to $350.00 and set a “buy” rating on the stock in a report on Friday, August 30th. Wedbush reduced their price target on Lululemon Athletica from $400.00 to $324.00 and set an “outperform” rating on the stock in a report on Wednesday, August 28th. Oppenheimer reaffirmed an “outperform” rating and issued a $445.00 price target on shares of Lululemon Athletica in a research report on Thursday, June 6th. Finally, BMO Capital Markets cut their target price on Lululemon Athletica from $420.00 to $384.00 and set a “market perform” rating on the stock in a research note on Thursday, June 6th. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating and twenty-one have given a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $354.94.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Tidemark LLC purchased a new position in Lululemon Athletica in the fourth quarter valued at $26,000. Scarborough Advisors LLC acquired a new stake in shares of Lululemon Athletica in the fourth quarter valued at about $26,000. Benjamin Edwards Inc. boosted its holdings in shares of Lululemon Athletica by 176.0% during the 1st quarter. Benjamin Edwards Inc. now owns 69 shares of the apparel retailer’s stock worth $27,000 after purchasing an additional 44 shares during the last quarter. Riverview Trust Co acquired a new stake in shares of Lululemon Athletica in the 1st quarter worth $29,000. Finally, Larson Financial Group LLC grew its holdings in shares of Lululemon Athletica by 78.2% during the 2nd quarter. Larson Financial Group LLC now owns 98 shares of the apparel retailer’s stock worth $29,000 after purchasing an additional 43 shares during the period. 85.20% of the stock is currently owned by hedge funds and other institutional investors.

Lululemon Athletica Stock Down 0.5 %

The business’s 50-day simple moving average is $269.49 and its two-hundred day simple moving average is $335.41. The firm has a market capitalization of $32.26 billion, a price-to-earnings ratio of 20.70, a PEG ratio of 1.40 and a beta of 1.26.

Lululemon Athletica (NASDAQ:LULU) last announced its quarterly earnings data on Thursday, August 29th. The apparel retailer reported $3.15 earnings per share for the quarter, beating analysts’ consensus estimates of $2.93 by $0.22. Lululemon Athletica had a net margin of 16.34% and a return on equity of 42.69%. The firm had revenue of $2.40 billion during the quarter, compared to analysts’ expectations of $2.41 billion. During the same quarter in the previous year, the business posted $2.68 earnings per share. The business’s quarterly revenue was up 9.1% compared to the same quarter last year. Sell-side analysts anticipate that Lululemon Athletica Inc. will post 13.9 earnings per share for the current year.

Lululemon Athletica declared that its board has approved a share buyback plan on Wednesday, June 5th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the apparel retailer to purchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its stock is undervalued.

About Lululemon Athletica

Lululemon Athletica Inc, together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories.