lululemon athletica inc. (LULU) Downgraded to “Hold” at Zacks Investment Research
lululemon athletica inc. (NASDAQ:LULU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday.
According to Zacks, “Lululemon has surpassed the industry in the past three months, mainly driven by its focus on strategy for 2020, as part of which it aims to generate revenues of $4 billion. To achieve this, the company is committed toward product innovation, building store fleet in North America, expanding digital business and global expansion. All these factors helped Lululemon to post robust numbers in second-quarter fiscal 2017, even amid a tough retail landscape. Both sales and earnings topped estimates and grew year over year. While the bottom line marked its 2nd consecutive beat, the top line recorded its 7th straight quarter of positive surprise. Also, sturdy e-Commerce growth fueled comps. Apart from this, the company is on track with ivivva’s remodeling. The solid results and favorable third quarter trends encouraged management to raise its fiscal 2017 view. However, stiff competition and volatile consumer spending patterns may pose concerns.”
A number of other equities analysts have also commented on the company. Susquehanna Bancshares Inc raised lululemon athletica inc. from a “neutral” rating to a “positive” rating and set a $64.00 price target for the company in a research note on Tuesday. UBS AG raised lululemon athletica inc. from a “neutral” rating to a “positive” rating in a research note on Tuesday. Deutsche Bank AG restated a “hold” rating and set a $59.00 price objective on shares of lululemon athletica inc. in a research report on Friday, September 1st. Buckingham Research restated a “neutral” rating and set a $55.00 price objective on shares of lululemon athletica inc. in a research report on Friday, September 1st. Finally, Morgan Stanley restated an “equal weight” rating and set a $61.00 price objective (up from $58.00) on shares of lululemon athletica inc. in a research report on Friday, September 1st. Three equities research analysts have rated the stock with a sell rating, seventeen have given a hold rating, twenty have given a buy rating and one has given a strong buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $65.68.
lululemon athletica inc. (NASDAQ LULU) opened at 61.49 on Thursday. The stock has a market capitalization of $8.41 billion, a PE ratio of 29.13 and a beta of 0.22. The firm has a 50-day moving average price of $60.61 and a 200-day moving average price of $57.27. lululemon athletica inc. has a 52 week low of $47.26 and a 52 week high of $72.70. lululemon athletica inc. also saw some unusual options trading on Tuesday. Investors bought 14,992 put options on the company. This is an increase of 147% compared to the typical volume of 6,070 put options.
lululemon athletica inc. (NASDAQ:LULU) last announced its quarterly earnings results on Thursday, August 31st. The apparel retailer reported $0.39 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.04. lululemon athletica inc. had a return on equity of 22.51% and a net margin of 11.68%. The company had revenue of $581.10 million during the quarter, compared to analyst estimates of $567.40 million. During the same period in the prior year, the company earned $0.38 earnings per share. The firm’s revenue was up 12.9% on a year-over-year basis. Equities research analysts predict that lululemon athletica inc. will post $2.40 EPS for the current fiscal year.
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In other news, Director Glenn Murphy bought 97,728 shares of lululemon athletica inc. stock in a transaction that occurred on Monday, June 26th. The stock was bought at an average price of $55.50 per share, for a total transaction of $5,423,904.00. Following the purchase, the director now directly owns 100,344 shares of the company’s stock, valued at approximately $5,569,092. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 0.29% of the company’s stock.
Hedge funds have recently modified their holdings of the stock. IHT Wealth Management LLC raised its stake in lululemon athletica inc. by 591.0% in the 2nd quarter. IHT Wealth Management LLC now owns 1,382 shares of the apparel retailer’s stock worth $105,000 after acquiring an additional 1,182 shares during the last quarter. Exane Derivatives purchased a new position in lululemon athletica inc. in the 2nd quarter worth $106,000. Global X Management Co. LLC raised its stake in lululemon athletica inc. by 39.7% in the 2nd quarter. Global X Management Co. LLC now owns 2,532 shares of the apparel retailer’s stock worth $151,000 after acquiring an additional 719 shares during the last quarter. OLD Mutual Customised Solutions Proprietary Ltd. raised its stake in lululemon athletica inc. by 40.0% in the 1st quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 3,500 shares of the apparel retailer’s stock worth $182,000 after acquiring an additional 1,000 shares during the last quarter. Finally, Suntrust Banks Inc. purchased a new position in lululemon athletica inc. in the 1st quarter worth $206,000. Institutional investors own 79.58% of the company’s stock.
About lululemon athletica inc.
lululemon athletica inc. is a designer, distributor and retailer of athletic apparel. The Company operates through two segments: Company-operated stores and Direct to consumer. It is also engaged in the sale from outlets, showrooms, sales from temporary locations, sales to wholesale accounts, warehouse sales, and license and supply arrangements.
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