Jacobs Levy Equity Management Inc. Invests $14.64 Million in lululemon athletica inc. $LULU

Key Points

• Jacobs Levy Equity Management Inc. acquired 51,712 shares of lululemon athletica valued at approximately $14.6 million in the first quarter of 2023.
• Multiple hedge funds, including Vanguard Group Inc. and Price T Rowe Associates, have also increased their stakes in lululemon athletica, which is predominantly owned by institutional investors at 85.20%.
• Wall Street analysts have significantly reduced price targets for lululemon, with Telsey Advisory Group lowering theirs from $360 to $200, indicating broad concerns about the stock's valuation.

Jacobs Levy Equity Management Inc. purchased a new position in shares of lululemon athletica inc. (NASDAQ:LULU - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 51,712 shares of the apparel retailer's stock, valued at approximately $14,638,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. N.E.W. Advisory Services LLC purchased a new stake in shares of lululemon athletica during the first quarter worth about $25,000. Cornerstone Planning Group LLC grew its holdings in shares of lululemon athletica by 506.3% during the first quarter. Cornerstone Planning Group LLC now owns 97 shares of the apparel retailer's stock worth $26,000 after buying an additional 81 shares in the last quarter. Zions Bancorporation National Association UT purchased a new stake in shares of lululemon athletica during the first quarter worth about $31,000. Garde Capital Inc. purchased a new stake in shares of lululemon athletica during the first quarter worth about $35,000. Finally, CENTRAL TRUST Co grew its holdings in shares of lululemon athletica by 154.9% during the first quarter. CENTRAL TRUST Co now owns 130 shares of the apparel retailer's stock worth $37,000 after buying an additional 79 shares in the last quarter. 85.20% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on LULU. UBS Group lowered their price target on shares of lululemon athletica from $240.00 to $185.00 and set a "neutral" rating for the company in a report on Friday. Wells Fargo & Company decreased their target price on shares of lululemon athletica from $205.00 to $160.00 and set an "equal weight" rating on the stock in a research report on Friday. Morgan Stanley decreased their target price on shares of 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. Robert W. Baird decreased their target price on shares of lululemon athletica from $260.00 to $225.00 and set an "outperform" rating on the stock in a research report on Friday. Finally, KeyCorp decreased their target price on shares of lululemon athletica from $400.00 to $350.00 and set an "overweight" rating on the stock in a research report on Friday, June 6th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twenty have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $245.79.

lululemon athletica Price Performance

LULU stock traded down $38.29 during midday trading on Friday, reaching $167.80. 36,729,936 shares of the company's stock traded hands, compared to its average volume of 5,640,420. The company has a market capitalization of $20.11 billion, a P/E ratio of 11.41, a PEG ratio of 1.60 and a beta of 1.12. lululemon athletica inc. has a fifty-two week low of $163.98 and a fifty-two week high of $423.32. The business has a 50-day moving average price of $212.64 and a two-hundred day moving average price of $265.38.

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

Insiders Place Their Bets

In other lululemon athletica news, CEO Calvin Mcdonald sold 27,049 shares of lululemon athletica stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 110,564 shares of the company's stock, valued at $26,058,829.16. The trade was a 19.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.54% of the stock is currently owned by company insiders.

lululemon athletica 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.