Bank of America Lowers lululemon athletica (NASDAQ:LULU) Price Target to $185.00

Key Points

• Bank of America has lowered its price target for lululemon athletica from $210.00 to $185.00 and maintains a "neutral" rating on the stock, indicating a potential upside of 14.98% from the last closing price.
• In recent reports, several analysts including Goldman Sachs and Morgan Stanley have also reduced their price targets for lululemon, with most now rating it as either "neutral" or "hold."
• Despite a recent earnings beat, lululemon's stock has shown significant volatility, trading down to $160.89 after experiencing a 12-month high of $423.32.

lululemon athletica (NASDAQ:LULU - Get Free Report) had its price target reduced by analysts at Bank of America from $210.00 to $185.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a "neutral" rating on the apparel retailer's stock. Bank of America's price target suggests a potential upside of 14.98% from the company's previous close.

Other analysts have also recently issued research reports about the stock. The Goldman Sachs Group dropped their price objective on shares of lululemon athletica from $232.00 to $200.00 and set a "neutral" rating for the company in a research note on Friday, September 5th. Needham & Company LLC dropped their price target on lululemon athletica from $238.00 to $192.00 and set a "buy" rating for the company in a research report on Friday, September 5th. William Blair cut lululemon athletica from an "outperform" rating to a "market perform" rating in a report on Friday, September 5th. Morgan Stanley reduced their price objective on lululemon athletica from $280.00 to $223.00 and set an "equal weight" rating on the stock in a research report on Tuesday, August 26th. Finally, TD Securities dropped their target price on lululemon athletica from $298.00 to $220.00 and set a "buy" rating for the company in a report on Friday, September 5th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, twenty-three have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $242.24.

lululemon athletica Stock Performance

Shares of LULU traded down $4.89 during trading hours on Friday, hitting $160.89. 3,388,892 shares of the stock were exchanged, compared to its average volume of 3,117,408. The stock's 50-day moving average price is $206.37 and its two-hundred day moving average price is $260.59. lululemon athletica has a 12-month low of $160.67 and a 12-month high of $423.32. The company has a market cap of $19.28 billion, a price-to-earnings ratio of 10.93, a price-to-earnings-growth ratio of 6.76 and a beta of 1.12.

lululemon athletica (NASDAQ:LULU - Get Free Report) last announced its earnings results on Thursday, September 4th. The apparel retailer reported $3.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.86 by $0.24. lululemon athletica had a net margin of 16.38% and a return on equity of 42.05%. The company had revenue of $2.53 billion for the quarter, compared to analysts' expectations of $2.55 billion. During the same quarter in the previous year, the company posted $3.15 EPS. The firm's quarterly revenue was up 6.5% on a year-over-year basis. lululemon athletica has set its FY 2025 guidance at 12.770-12.970 EPS. Q3 2025 guidance at 2.180-2.230 EPS. On average, research analysts expect that lululemon athletica will post 14.36 earnings per share for the current year.

Insider Activity

In other news, CEO Calvin Mcdonald sold 27,049 shares of the stock in a transaction dated Friday, June 27th. The shares were sold at an average price of $235.69, for a total transaction of $6,375,178.81. Following the sale, the chief executive officer owned 110,564 shares of the company's stock, valued at approximately $26,058,829.16. This represents a 19.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.54% of the company's stock.

Institutional Trading of lululemon athletica

A number of large investors have recently modified their holdings of the stock. N.E.W. Advisory Services LLC acquired a new stake in shares of lululemon athletica in the first quarter valued at $25,000. Cornerstone Planning Group LLC increased its holdings in lululemon athletica by 506.3% during the 1st quarter. Cornerstone Planning Group LLC now owns 97 shares of the apparel retailer's stock worth $26,000 after purchasing an additional 81 shares during the period. Flaharty Asset Management LLC acquired a new stake in lululemon athletica in the 1st quarter valued at about $29,000. Blue Trust Inc. boosted its stake in shares of lululemon athletica by 96.8% in the 2nd quarter. Blue Trust Inc. now owns 124 shares of the apparel retailer's stock valued at $29,000 after buying an additional 61 shares during the period. Finally, Trust Co. of Toledo NA OH purchased a new position in shares of lululemon athletica in the 2nd quarter valued at about $30,000. Hedge funds and other institutional investors own 85.20% of the company's stock.

About lululemon athletica

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.

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