Zacks Investment Research lowered shares of lululemon athletica inc. (NASDAQ:LULU) from a buy rating to a hold rating in a research note published 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 brokerages also recently issued reports on LULU. KeyCorp reaffirmed a hold rating on shares of lululemon athletica inc. in a research report on Friday, August 25th. Vetr downgraded shares of lululemon athletica inc. from a buy rating to a hold rating and set a $54.75 price objective for the company. in a research report on Wednesday, May 10th. Jefferies Group LLC reaffirmed a hold rating and issued a $56.00 price objective on shares of lululemon athletica inc. in a research report on Friday, July 14th. Deutsche Bank AG reaffirmed a hold rating and issued a $59.00 price objective (up from $58.00) on shares of lululemon athletica inc. in a research report on Saturday, June 3rd. Finally, J P Morgan Chase & Co reaffirmed a buy rating and issued a $71.00 price objective on shares of lululemon athletica inc. in a research report on Friday, September 1st. Three analysts have rated the stock with a sell rating, seventeen have issued a hold rating, nineteen have issued a buy rating and one has assigned a strong buy rating to the company. lululemon athletica inc. has a consensus rating of Hold and a consensus price target of $65.68.
lululemon athletica inc. (NASDAQ LULU) traded up 1.70% during trading on Thursday, reaching $62.34. The company had a trading volume of 3,571,244 shares. lululemon athletica inc. has a one year low of $47.26 and a one year high of $72.70. The company has a 50-day moving average price of $60.64 and a 200 day moving average price of $57.34. The company has a market capitalization of $8.52 billion, a price-to-earnings ratio of 29.53 and a beta of 0.22.
lululemon athletica inc. (NASDAQ:LULU) last issued its quarterly earnings data on Thursday, August 31st. The apparel retailer reported $0.39 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.35 by $0.04. lululemon athletica inc. had a net margin of 11.68% and a return on equity of 22.51%. The business had revenue of $581.10 million during the quarter, compared to the consensus estimate of $567.40 million. During the same period in the prior year, the firm posted $0.38 EPS. The firm’s quarterly revenue was up 12.9% compared to the same quarter last year. Analysts expect that lululemon athletica inc. will post $2.41 earnings per share for the current year.
In related news, Director Glenn Murphy bought 100,000 shares of the business’s stock in a transaction dated Tuesday, June 27th. The shares were purchased at an average price of $55.50 per share, with a total value of $5,550,000.00. Following the purchase, the director now owns 100,344 shares of the company’s stock, valued at approximately $5,569,092. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 0.29% of the company’s stock.
Several institutional investors and hedge funds have recently made changes to their positions in the company. Penserra Capital Management LLC boosted its stake in shares of lululemon athletica inc. by 1.9% during the 1st quarter. Penserra Capital Management LLC now owns 4,600 shares of the apparel retailer’s stock valued at $238,000 after purchasing an additional 84 shares in the last quarter. Comerica Bank lifted its position in lululemon athletica inc. by 0.9% during the 1st quarter. Comerica Bank now owns 11,149 shares of the apparel retailer’s stock valued at $588,000 after acquiring an additional 97 shares during the period. Great West Life Assurance Co. Can lifted its position in lululemon athletica inc. by 0.3% during the 1st quarter. Great West Life Assurance Co. Can now owns 59,288 shares of the apparel retailer’s stock valued at $3,072,000 after acquiring an additional 173 shares during the period. Suntrust Banks Inc. lifted its position in lululemon athletica inc. by 5.9% during the 2nd quarter. Suntrust Banks Inc. now owns 4,239 shares of the apparel retailer’s stock valued at $252,000 after acquiring an additional 237 shares during the period. Finally, Cambridge Investment Research Advisors Inc. lifted its position in lululemon athletica inc. by 5.2% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 5,851 shares of the apparel retailer’s stock valued at $303,000 after acquiring an additional 287 shares during the period. 79.58% of the stock is currently owned by hedge funds and other 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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