Letko Brosseau & Associates Inc. Decreases Position in lululemon athletica inc. $LULU

Key Points

• Letko Brosseau & Associates reduced its lululemon stake by 8.8% in the fourth quarter, selling 16,996 shares and ending with 176,638 shares valued at about $36.7 million.
• Wall Street sentiment on lululemon has turned more cautious, with multiple analysts cutting price targets and the consensus rating sitting at Hold with an average target of $154.26.
• Despite recent weakness in the stock and softer demand concerns, lululemon’s latest quarter still beat EPS and revenue estimates, though the company’s guidance and outlook remain under pressure.

Letko Brosseau & Associates Inc. cut its stake in lululemon athletica inc. (NASDAQ:LULU - Free Report) by 8.8% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 176,638 shares of the apparel retailer's stock after selling 16,996 shares during the quarter. Letko Brosseau & Associates Inc. owned approximately 0.15% of lululemon athletica worth $36,707,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Integrated Financial Solutions Inc. acquired a new stake in lululemon athletica in the 4th quarter valued at about $26,000. Murphy & Mullick Capital Management Corp raised its holdings in lululemon athletica by 187.5% in the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 161 shares of the apparel retailer's stock valued at $27,000 after acquiring an additional 105 shares during the last quarter. GoalVest Advisory LLC acquired a new stake in lululemon athletica in the 4th quarter valued at about $27,000. Elyxium Wealth LLC acquired a new stake in lululemon athletica in the 4th quarter valued at about $31,000. Finally, Aventura Private Wealth LLC acquired a new stake in lululemon athletica in the 4th quarter valued at about $39,000. 85.20% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting lululemon athletica

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

• Positive Sentiment: Michael Burry reportedly bought Lululemon despite the recent selloff, which may signal that some value investors see the stock as oversold. Michael Burry says two beaten-down stocks offer better value than Microsoft — buys Lululemon despite headwinds
• Neutral Sentiment: Two analysts cut price targets but kept neutral/hold views: Citigroup lowered its target to $130 from $185, and Daiwa cut its target to $120 from $173. The reductions reflect lower expectations, even though both targets still imply limited upside from recent levels.
• Neutral Sentiment: Articles on Lululemon’s international sales note that overseas revenue is becoming increasingly important to the company’s growth story, but also that investors are watching closely to see whether that expansion can offset softer demand in North America. Lululemon (LULU) Reliance on International Sales: What Investors Need to Know
• Neutral Sentiment: Lululemon’s board settled a proxy dispute with founder Chip Wilson and added new independent directors, a governance reset that may help long-term oversight but does not directly address the near-term business slowdown. Lululemon Governance Reset Tests Board Changes Against Slumping Share Performance
• Negative Sentiment: Recent coverage says Lululemon’s forecast cut is highlighting challenges for the incoming CEO, with softer demand and weaker product launches weighing on sentiment. Lululemon shares drop as forecast cut spotlights challenges for incoming CEO
• Negative Sentiment: Several stories frame LULU as underperforming the broader consumer discretionary sector and lagging peers like Gap, reinforcing worries that the brand is losing momentum. Lululemon Athletica stock: Is LULU underperforming the consumer discretionary sector?

Analysts Set New Price Targets

A number of analysts have commented on the stock. Weiss Ratings downgraded shares of lululemon athletica from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, March 31st. Barclays cut their price objective on shares of lululemon athletica from $161.00 to $113.00 and set an "equal weight" rating for the company in a report on Friday, June 5th. Needham & Company LLC reiterated a "hold" rating on shares of lululemon athletica in a report on Friday, June 5th. Wells Fargo & Company cut their price objective on shares of lululemon athletica from $150.00 to $110.00 and set an "equal weight" rating for the company in a report on Friday, June 5th. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on shares of lululemon athletica from $171.00 to $127.00 and set a "hold" rating for the company in a report on Monday. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twenty-eight have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $154.26.

lululemon athletica Stock Performance

Shares of lululemon athletica stock opened at $121.36 on Wednesday. lululemon athletica inc. has a fifty-two week low of $109.36 and a fifty-two week high of $262.16. The stock has a 50 day moving average of $140.03 and a 200 day moving average of $169.36. The firm has a market capitalization of $14.65 billion, a price-to-earnings ratio of 9.80, a PEG ratio of 3.88 and a beta of 0.87.

lululemon athletica (NASDAQ:LULU - Get Free Report) last posted its earnings results on Thursday, June 4th. The apparel retailer reported $1.69 earnings per share for the quarter, beating the consensus estimate of $1.67 by $0.02. The firm had revenue of $2.47 billion during the quarter, compared to the consensus estimate of $2.44 billion. lululemon athletica had a net margin of 13.03% and a return on equity of 31.26%. The firm's revenue for the quarter was up 4.3% on a year-over-year basis. During the same quarter last year, the firm earned $2.60 EPS. lululemon athletica has set its FY 2026 guidance at 10.950-11.150 EPS and its Q2 2026 guidance at 1.760-1.810 EPS. Analysts forecast that lululemon athletica inc. will post 11.47 EPS for the current year.

Insider Activity at lululemon athletica

In other lululemon athletica news, insider Nicole Neuburger sold 622 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $161.00, for a total value of $100,142.00. Following the completion of the transaction, the insider owned 19,156 shares in the company, valued at $3,084,116. The trade was a 3.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO Andre Maestrini purchased 3,275 shares of the company's stock in a transaction on Wednesday, April 1st. The stock was acquired at an average price of $151.02 per share, with a total value of $494,590.50. Following the purchase, the chief executive officer owned 34,551 shares of the company's stock, valued at approximately $5,217,892.02. This represents a 10.47% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 0.54% of the company's stock.

lululemon athletica 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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