lululemon athletica inc. (LULU) Cut 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 to investors on Tuesday.
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 have also recently issued reports on the stock. B. Riley reissued a “neutral” rating on shares of lululemon athletica inc. in a research report on Wednesday, November 1st. Cowen and Company reissued a “buy” rating and issued a $68.00 target price on shares of lululemon athletica inc. in a research report on Friday, November 3rd. BMO Capital Markets reissued a “hold” rating and issued a $55.00 target price on shares of lululemon athletica inc. in a research report on Thursday, November 2nd. KeyCorp reissued a “hold” rating on shares of lululemon athletica inc. in a research report on Friday, October 27th. Finally, Citigroup Inc. raised shares of lululemon athletica inc. from a “neutral” rating to a “buy” rating and cut their price objective for the stock from $61.50 to $60.09 in a research report on Friday, October 20th. Three investment analysts have rated the stock with a sell rating, eighteen have given a hold rating, twenty have assigned a buy rating and one has given a strong buy rating to the stock. lululemon athletica inc. currently has an average rating of “Hold” and a consensus target price of $65.67.
Shares of lululemon athletica inc. (NASDAQ LULU) traded down $0.27 during trading on Tuesday, hitting $64.60. 1,789,200 shares of the stock were exchanged, compared to its average volume of 2,683,945. The company has a market capitalization of $8,782.17, a PE ratio of 29.76, a PEG ratio of 2.25 and a beta of 0.15. lululemon athletica inc. has a 52 week low of $47.26 and a 52 week high of $72.70.
lululemon athletica inc. (NASDAQ:LULU) last announced its earnings results on Thursday, August 31st. The apparel retailer reported $0.39 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.35 by $0.04. The company had revenue of $581.10 million during the quarter, compared to analysts’ expectations of $567.40 million. lululemon athletica inc. had a net margin of 11.68% and a return on equity of 22.51%. lululemon athletica inc.’s quarterly revenue was up 12.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.38 earnings per share. analysts expect that lululemon athletica inc. will post 2.43 EPS for the current fiscal year.
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Several institutional investors and hedge funds have recently modified their holdings of the stock. Alyeska Investment Group L.P. bought a new position in lululemon athletica inc. during the 3rd quarter valued at $6,674,000. Cowen Inc. bought a new position in lululemon athletica inc. during the 3rd quarter valued at $7,869,000. First Republic Investment Management Inc. lifted its stake in lululemon athletica inc. by 26.2% during the 3rd quarter. First Republic Investment Management Inc. now owns 5,035 shares of the apparel retailer’s stock valued at $313,000 after acquiring an additional 1,046 shares in the last quarter. Engineers Gate Manager LP bought a new position in lululemon athletica inc. during the 3rd quarter valued at $863,000. Finally, Lodge Hill Capital LLC lifted its stake in lululemon athletica inc. by 2.7% during the 3rd quarter. Lodge Hill Capital LLC now owns 688,170 shares of the apparel retailer’s stock valued at $42,839,000 after acquiring an additional 18,170 shares in the last quarter. Institutional investors own 81.14% 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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