lululemon athletica inc. (LULU) Upgraded to Buy by Zacks Investment Research
lululemon athletica inc. (NASDAQ:LULU) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Wednesday. The firm currently has a $69.00 price target on the apparel retailer’s stock. Zacks Investment Research‘s price objective points to a potential upside of 10.68% from the company’s previous close.
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 research analysts also recently commented on LULU. UBS AG reiterated a “neutral” rating and issued a $54.00 price objective (down previously from $57.00) on shares of lululemon athletica inc. in a report on Tuesday, May 30th. Barclays PLC set a $85.00 price target on lululemon athletica inc. and gave the stock a “buy” rating in a report on Saturday, June 3rd. Oppenheimer Holdings, Inc. set a $65.00 price target on lululemon athletica inc. and gave the stock a “buy” rating in a report on Saturday, June 3rd. BMO Capital Markets set a $55.00 price target on lululemon athletica inc. and gave the stock a “hold” rating in a report on Tuesday, August 8th. Finally, Vetr upgraded lululemon athletica inc. from a “hold” rating to a “buy” rating and set a $63.40 price target for the company in a report on Thursday, August 10th. Three equities research analysts have rated the stock with a sell rating, seventeen have given a hold rating, nineteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $65.68.
lululemon athletica inc. (NASDAQ:LULU) traded up 1.70% during mid-day trading on Wednesday, reaching $62.34. 3,571,244 shares of the company traded hands. lululemon athletica inc. has a 52-week low of $47.26 and a 52-week high of $72.70. The stock has a market capitalization of $8.52 billion, a PE ratio of 29.53 and a beta of 0.22. The firm’s 50-day moving average is $60.64 and its 200 day moving average is $57.34.
lululemon athletica inc. (NASDAQ:LULU) last issued its quarterly earnings results on Thursday, August 31st. The apparel retailer reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.04. The business had revenue of $581.10 million for the quarter, compared to analyst estimates of $567.40 million. lululemon athletica inc. had a return on equity of 22.51% and a net margin of 11.68%. The firm’s revenue for the quarter was up 12.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.38 earnings per share. On average, equities research analysts expect that lululemon athletica inc. will post $2.41 earnings per share for the current year.
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In related news, Director Glenn Murphy purchased 97,728 shares of the firm’s stock in a transaction on Monday, June 26th. The shares were acquired 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 in the company, valued at $5,569,092. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. 0.29% of the stock is currently owned by insiders.
Institutional investors have recently bought and sold shares of the company. Xact Kapitalforvaltning AB increased its holdings in shares of lululemon athletica inc. by 21.8% in the 1st quarter. Xact Kapitalforvaltning AB now owns 17,832 shares of the apparel retailer’s stock worth $925,000 after buying an additional 3,189 shares during the last quarter. Schwab Charles Investment Management Inc. increased its holdings in shares of lululemon athletica inc. by 8.4% in the 1st quarter. Schwab Charles Investment Management Inc. now owns 371,296 shares of the apparel retailer’s stock worth $19,260,000 after buying an additional 28,686 shares during the last quarter. CIBC World Markets Inc. increased its holdings in shares of lululemon athletica inc. by 6.6% in the 1st quarter. CIBC World Markets Inc. now owns 11,143 shares of the apparel retailer’s stock worth $578,000 after buying an additional 688 shares during the last quarter. Stifel Financial Corp increased its holdings in shares of lululemon athletica inc. by 49.1% in the 1st quarter. Stifel Financial Corp now owns 23,401 shares of the apparel retailer’s stock worth $1,207,000 after buying an additional 7,701 shares during the last quarter. Finally, Morgan Stanley increased its holdings in shares of lululemon athletica inc. by 55.2% in the 1st quarter. Morgan Stanley now owns 821,041 shares of the apparel retailer’s stock worth $42,587,000 after buying an additional 292,183 shares during the last quarter. Hedge funds and other institutional investors own 79.58% of the company’s stock.
lululemon athletica inc. Company Profile
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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