Bastion Asset Management Inc. Invests $2.05 Million in lululemon athletica inc. $LULU

Key Points

• Bastion Asset Management bought a new stake in lululemon athletica during the fourth quarter, purchasing 9,721 shares worth about $2.05 million. The position represents about 1.1% of Bastion’s portfolio.
• Institutional ownership remains high, with 85.20% of lululemon shares held by institutional investors and hedge funds. Several other funds also increased their holdings recently.
• lululemon reported better-than-expected quarterly results, posting EPS of $5.01 versus the $4.78 consensus and revenue of $3.64 billion versus $3.59 billion expected. Despite the beat, analysts remain cautious, with the stock carrying an average Hold rating and a $203.80 price target.

Bastion Asset Management Inc. purchased a new position in shares of lululemon athletica inc. (NASDAQ:LULU - Free Report) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 9,721 shares of the apparel retailer's stock, valued at approximately $2,045,000. lululemon athletica accounts for 1.1% of Bastion Asset Management Inc.'s portfolio, making the stock its 28th biggest holding.

A number of other institutional investors and hedge funds have also made changes to their positions in LULU. Hussman Strategic Advisors Inc. grew its position in lululemon athletica by 66.7% during the third quarter. Hussman Strategic Advisors Inc. now owns 21,000 shares of the apparel retailer's stock worth $3,737,000 after buying an additional 8,400 shares during the period. Swiss Life Asset Management Ltd grew its position in lululemon athletica by 53.1% during the fourth quarter. Swiss Life Asset Management Ltd now owns 68,093 shares of the apparel retailer's stock worth $14,150,000 after buying an additional 23,623 shares during the period. Pacific Heights Asset Management LLC grew its position in lululemon athletica by 44.4% during the third quarter. Pacific Heights Asset Management LLC now owns 65,000 shares of the apparel retailer's stock worth $11,565,000 after buying an additional 20,000 shares during the period. Oppenheimer Asset Management Inc. grew its position in lululemon athletica by 46.6% during the fourth quarter. Oppenheimer Asset Management Inc. now owns 25,594 shares of the apparel retailer's stock worth $5,319,000 after buying an additional 8,134 shares during the period. Finally, Mediolanum International Funds Ltd grew its position in lululemon athletica by 72.8% during the third quarter. Mediolanum International Funds Ltd now owns 54,318 shares of the apparel retailer's stock worth $9,729,000 after buying an additional 22,891 shares during the period. 85.20% of the stock is currently owned by institutional investors and hedge funds.

lululemon athletica Stock Performance

Shares of NASDAQ LULU opened at $119.22 on Wednesday. lululemon athletica inc. has a 1 year low of $118.06 and a 1 year high of $340.25. The firm's 50 day moving average price is $150.41 and its 200 day moving average price is $173.71. The firm has a market cap of $14.39 billion, a P/E ratio of 8.96, a price-to-earnings-growth ratio of 3.70 and a beta of 0.90.

lululemon athletica (NASDAQ:LULU - Get Free Report) last announced its earnings results on Tuesday, March 17th. The apparel retailer reported $5.01 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.78 by $0.23. lululemon athletica had a net margin of 14.22% and a return on equity of 34.82%. The firm had revenue of $3.64 billion for the quarter, compared to analyst estimates of $3.59 billion. During the same quarter last year, the business earned $6.14 earnings per share. lululemon athletica's revenue was up .0% compared to the same quarter last year. As a group, equities analysts predict that lululemon athletica inc. will post 12.3 EPS for the current year.

Analyst Ratings Changes

LULU has been the topic of several recent analyst reports. The Goldman Sachs Group lowered their target price on shares of lululemon athletica from $200.00 to $184.00 and set a "neutral" rating on the stock in a research report on Wednesday, March 11th. Stifel Nicolaus lowered their price target on shares of lululemon athletica from $210.00 to $176.00 and set a "hold" rating on the stock in a research report on Wednesday, March 18th. Raymond James Financial reiterated a "strong-buy" rating on shares of lululemon athletica in a research report on Thursday, January 22nd. Citigroup lowered their price target on shares of lululemon athletica from $210.00 to $185.00 and set a "neutral" rating on the stock in a research report on Monday, March 23rd. Finally, Robert W. Baird lowered their price target on shares of lululemon athletica from $190.00 to $170.00 and set a "neutral" rating on the stock in a research report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, twenty-eight have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, lululemon athletica presently has an average rating of "Hold" and an average price target of $203.80.

Insiders Place Their Bets

In related news, CEO Andre Maestrini purchased 3,275 shares of the business's stock in a transaction on Wednesday, April 1st. The shares were bought at an average price of $151.02 per share, with a total value of $494,590.50. Following the completion of the purchase, the chief executive officer directly owned 34,551 shares in the company, valued at approximately $5,217,892.02. This trade represents a 10.47% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Charles V. Bergh purchased 6,090 shares of the business's stock in a transaction on Friday, March 20th. The shares were bought at an average cost of $164.20 per share, for a total transaction of $999,978.00. Following the purchase, the director owned 6,090 shares of the company's stock, valued at $999,978. This trade represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.54% of the stock is currently owned by insiders.

Key Headlines Impacting lululemon athletica

Here are the key news stories impacting lululemon athletica this week:

• Positive Sentiment: Wilson said he is still willing to be “constructive” and work toward a resolution, which leaves the door open to a deal that could reduce uncertainty for shareholders.
• Neutral Sentiment: lululemon filed definitive proxy materials and set the stage for a shareholder vote at its June 25 annual meeting, formally bringing the control battle into focus for investors.
• Negative Sentiment: The company publicly pushed back against Wilson, calling his views “outdated” and “misguided,” while warning that his nominees and proposals could undermine its turnaround strategy.
• Negative Sentiment: Reports say settlement talks collapsed after disagreements over board seats and campaign reimbursement, suggesting the proxy fight may stay contentious for weeks.
• Negative Sentiment: Several articles also frame lululemon’s business as facing softer trends and a challenged valuation, reinforcing concerns that the stock’s weakness is not just about governance.

lululemon athletica Company Profile

lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company's product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.

Products are developed in-house and produced through a network of third-party manufacturers.

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