lululemon athletica (NASDAQ:LULU) Shares Gap Up After Earnings Beat

lululemon athletica inc. (NASDAQ:LULU) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $187.01, but opened at $204.58. lululemon athletica shares last traded at $204.8290, with a volume of 7,595,238 shares traded.

The apparel retailer reported $2.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.22 by $0.37. lululemon athletica had a return on equity of 40.17% and a net margin of 15.72%.The company had revenue of $2.57 billion during the quarter, compared to analyst estimates of $2.48 billion. During the same period in the prior year, the company posted $2.53 earnings per share. lululemon athletica’s quarterly revenue was up 7.1% on a year-over-year basis. lululemon athletica has set its FY 2025 guidance at 12.920-13.020 EPS and its Q4 2025 guidance at 4.660-4.760 EPS.

Analyst Ratings Changes

Several brokerages have commented on LULU. Evercore ISI lifted their price objective on shares of lululemon athletica from $180.00 to $215.00 in a research report on Friday. Needham & Company LLC reissued a “hold” rating on shares of lululemon athletica in a research report on Friday, November 21st. Barclays lifted their price target on shares of lululemon athletica from $180.00 to $189.00 and gave the stock an “equal weight” rating in a report on Friday. Robert W. Baird increased their price objective on lululemon athletica from $195.00 to $210.00 and gave the company a “neutral” rating in a report on Friday. Finally, Morgan Stanley decreased their target price on lululemon athletica from $223.00 to $185.00 and set an “equal weight” rating for the company in a research report on Tuesday, September 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, thirty-one have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $227.95.

Insider Buying and Selling

In other lululemon athletica news, insider Nicole Neuburger sold 615 shares of the firm’s stock in a transaction dated Tuesday, September 30th. The shares were sold at an average price of $178.00, for a total transaction of $109,470.00. Following the completion of the sale, the insider directly owned 8,993 shares in the company, valued at approximately $1,600,754. This trade represents a 6.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.54% of the company’s stock.

Institutional Investors Weigh In On lululemon athletica

Institutional investors have recently made changes to their positions in the company. Sandler Capital Management bought a new stake in shares of lululemon athletica in the 1st quarter worth about $484,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of lululemon athletica during the second quarter valued at approximately $17,747,000. K.J. Harrison & Partners Inc raised its holdings in shares of lululemon athletica by 100.1% in the second quarter. K.J. Harrison & Partners Inc now owns 6,002 shares of the apparel retailer’s stock worth $1,426,000 after buying an additional 3,002 shares during the period. Ameriprise Financial Inc. raised its holdings in shares of lululemon athletica by 5.9% in the first quarter. Ameriprise Financial Inc. now owns 748,236 shares of the apparel retailer’s stock worth $211,704,000 after buying an additional 41,936 shares during the period. Finally, Maverick Capital Ltd. boosted its stake in shares of lululemon athletica by 16.9% during the first quarter. Maverick Capital Ltd. now owns 372,305 shares of the apparel retailer’s stock valued at $105,385,000 after purchasing an additional 53,791 shares during the period. Hedge funds and other institutional investors own 85.20% of the company’s stock.

lululemon athletica Stock Performance

The stock’s 50 day simple moving average is $174.48 and its 200 day simple moving average is $201.93. The firm has a market capitalization of $24.31 billion, a P/E ratio of 14.20, a P/E/G ratio of 12.81 and a beta of 1.01.

lululemon athletica Company Profile

Lululemon Athletica Inc, together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories.