Lululemon Athletica Inc. (LULU) Upgraded at Zacks Investment Research
Lululemon Athletica Inc. (NASDAQ:LULU) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
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 analysts have also recently issued reports on the stock. Morgan Stanley cut shares of Lululemon Athletica from an “overweight” rating to an “equal weight” rating and lowered their price objective for the company from $74.00 to $70.00 in a research note on Friday, September 2nd. Jefferies Group cut shares of Lululemon Athletica from a “buy” rating to a “hold” rating and lowered their price objective for the company from $80.00 to $76.00 in a research note on Sunday, September 4th. They noted that the move was a valuation call. Canaccord Genuity lowered their price objective on shares of Lululemon Athletica from $70.00 to $65.00 and set a “hold” rating for the company in a research note on Monday, September 5th. Wedbush boosted their price objective on shares of Lululemon Athletica from $82.00 to $84.00 and gave the company an “outperform” rating in a research note on Friday, September 2nd. Finally, FBR & Co reaffirmed an “underperform” rating and set a $40.00 price target on shares of Lululemon Athletica in a research report on Friday, September 2nd. Five investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating, twenty-two have issued a buy rating and one has issued a strong buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $70.45.
Lululemon Athletica (NASDAQ:LULU) traded up 4.27% on Tuesday, hitting $58.18. The stock had a trading volume of 1,864,518 shares. The company’s 50-day moving average price is $57.16 and its 200 day moving average price is $67.58. Lululemon Athletica has a one year low of $44.62 and a one year high of $81.81. The firm has a market cap of $7.97 billion, a price-to-earnings ratio of 29.85 and a beta of 0.46.
Lululemon Athletica (NASDAQ:LULU) last issued 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. 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 company’s revenue was up 13.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.34 earnings per share. Analysts expect that Lululemon Athletica will post $2.13 earnings per share for the current year.
A number of institutional investors have recently made changes to their positions in the stock. Gateway Investment Advisers LLC purchased a new position in shares of Lululemon Athletica during the second quarter valued at about $6,001,000. Norman Fields Gottscho Capital Management LLC increased its position in shares of Lululemon Athletica by 0.9% in the second quarter. Norman Fields Gottscho Capital Management LLC now owns 16,242 shares of the apparel retailer’s stock valued at $1,200,000 after buying an additional 150 shares in the last quarter. DNB Asset Management AS increased its position in shares of Lululemon Athletica by 2.4% in the second quarter. DNB Asset Management AS now owns 12,810 shares of the apparel retailer’s stock valued at $442,000 after buying an additional 300 shares in the last quarter. British Columbia Investment Management Corp increased its position in shares of Lululemon Athletica by 18.8% in the second quarter. British Columbia Investment Management Corp now owns 49,434 shares of the apparel retailer’s stock valued at $3,651,000 after buying an additional 7,819 shares in the last quarter. Finally, Patten & Patten Inc. TN increased its position in shares of Lululemon Athletica by 6.2% in the second quarter. Patten & Patten Inc. TN now owns 32,025 shares of the apparel retailer’s stock valued at $2,365,000 after buying an additional 1,875 shares in the last quarter. 91.60% of the stock is owned by hedge funds and other institutional investors.
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.
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