Zacks Investment Research Downgrades lululemon athletica inc. (LULU) to Hold
lululemon athletica inc. (NASDAQ:LULU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “Lululemon stock has made notable recovery, outperforming the industry in the last three months. The company delivered top and bottom line beat in first-quarter fiscal 2017, which has considerably boosted stock price. Further, the company is all set to utilize its capabilities built in fiscal 2015 over the next five years. In fact, by 2020, the company aims to double its revenues to about $4 billion and more than double its earnings. Moreover, the company’s eCommerce growth initiatives and ivivva remodeling bode well. We note that the company’s eCommerce comps improved in the low-double digits range so far in the fiscal second-quarter. This led the company to provide solid comps guidance for the second quarter and fiscal 2017, reflecting further strengthening of eCommerce business. However, in-store comps continue to suffer. The company also tweaked revenue forecast for fiscal 2017, which indicates further weakness.”
A number of other research analysts have also recently weighed in on the stock. BMO Capital Markets set a $55.00 price objective on shares of lululemon athletica inc. and gave the stock a “hold” rating in a research note on Tuesday, August 8th. Stifel Nicolaus cut shares of lululemon athletica inc. from a “buy” rating to a “hold” rating and raised their price objective for the stock from $60.00 to $66.00 in a research note on Tuesday, July 25th. They noted that the move was a valuation call. Cowen and Company reissued an “outperform” rating and set a $67.00 price objective (up from $64.00) on shares of lululemon athletica inc. in a research note on Saturday, July 22nd. Vetr cut shares of lululemon athletica inc. from a “buy” rating to a “hold” rating and set a $63.40 price objective for the company. in a research note on Wednesday, July 19th. Finally, BidaskClub raised shares of lululemon athletica inc. from a “hold” rating to a “buy” rating in a research note on Wednesday, July 5th. Four research analysts have rated the stock with a sell rating, eighteen have given a hold rating and nineteen have assigned a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus target price of $64.80.
lululemon athletica inc. (LULU) traded up 0.39% during midday trading on Wednesday, reaching $59.73. The company had a trading volume of 461,078 shares. The firm’s 50 day moving average is $60.19 and its 200 day moving average is $58.05. The stock has a market capitalization of $8.17 billion, a PE ratio of 28.29 and a beta of 0.25. lululemon athletica inc. has a 1-year low of $47.26 and a 1-year high of $81.81. lululemon athletica inc. also saw some unusual options trading activity on Tuesday. Stock investors purchased 19,122 call options on the company. This is an increase of 647% compared to the typical volume of 2,560 call options.
lululemon athletica inc. (NASDAQ:LULU) last issued its earnings results on Thursday, June 1st. The apparel retailer reported $0.32 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.28 by $0.04. lululemon athletica inc. had a net margin of 12.21% and a return on equity of 23.43%. The company had revenue of $520.30 million during the quarter, compared to analysts’ expectations of $513.99 million. During the same period last year, the company posted $0.33 earnings per share. The firm’s quarterly revenue was up 5.0% compared to the same quarter last year. On average, equities analysts anticipate that lululemon athletica inc. will post $2.34 EPS for the current fiscal year.
In related news, Director Glenn Murphy bought 97,728 shares of the company’s stock in a transaction dated Monday, June 26th. The stock was bought at an average price of $55.50 per share, with a total value of $5,423,904.00. Following the transaction, the director now owns 100,344 shares of the company’s stock, valued at $5,569,092. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. 0.29% of the stock is currently owned by insiders.
Large investors have recently added to or reduced their stakes in the company. Xact Kapitalforvaltning AB increased its stake in lululemon athletica inc. by 21.8% in the first quarter. Xact Kapitalforvaltning AB now owns 17,832 shares of the apparel retailer’s stock valued at $925,000 after buying an additional 3,189 shares during the last quarter. Rothschild Investment Corp IL increased its stake in lululemon athletica inc. by 8.5% in the first quarter. Rothschild Investment Corp IL now owns 6,400 shares of the apparel retailer’s stock valued at $332,000 after buying an additional 500 shares during the last quarter. Schwab Charles Investment Management Inc. increased its stake in lululemon athletica inc. by 8.4% in the first quarter. Schwab Charles Investment Management Inc. now owns 371,296 shares of the apparel retailer’s stock valued at $19,260,000 after buying an additional 28,686 shares during the last quarter. CIBC World Markets Inc. increased its stake in lululemon athletica inc. by 6.6% in the first quarter. CIBC World Markets Inc. now owns 11,143 shares of the apparel retailer’s stock valued at $578,000 after buying an additional 688 shares during the last quarter. Finally, Stifel Financial Corp increased its stake in lululemon athletica inc. by 49.1% in the first quarter. Stifel Financial Corp now owns 23,401 shares of the apparel retailer’s stock valued at $1,207,000 after buying an additional 7,701 shares during the last quarter. 80.64% of the stock is owned by institutional investors.
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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