Rule One Partners LLC Acquires 62,000 Shares of lululemon athletica inc. $LULU

Key Points

• Rule One Partners increased its stake in lululemon by 146.9%, buying 62,000 shares to hold 104,200 shares total, making LULU its second-largest position and representing about $18.66 million (0.09%) of the company.
• Wall Street currently assigns LULU a consensus "Hold" rating with a $223.40 price target; the company recently beat estimates (EPS $2.59 vs $2.22, revenue $2.57B, +7.1% YoY) and trades at a market cap of ~$18.5B and a P/E of ~10.9.
• Governance and insider activity could weigh on sentiment: founder Chip Wilson has publicly criticized the board during the CEO search, and insider Celeste Burgoyne sold 13,511 shares, cutting her ownership by ~71.8%.

Rule One Partners LLC boosted its holdings in shares of lululemon athletica inc. (NASDAQ:LULU - Free Report) by 146.9% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 104,200 shares of the apparel retailer's stock after purchasing an additional 62,000 shares during the period. lululemon athletica makes up approximately 2.6% of Rule One Partners LLC's holdings, making the stock its 2nd biggest position. Rule One Partners LLC owned about 0.09% of lululemon athletica worth $18,663,000 as of its most recent SEC filing.

A number of other large investors have also recently added to or reduced their stakes in LULU. Cornerstone Planning Group LLC grew its position in lululemon athletica by 81.9% in the third quarter. Cornerstone Planning Group LLC now owns 151 shares of the apparel retailer's stock worth $25,000 after buying an additional 68 shares during the last quarter. Murphy & Mullick Capital Management Corp lifted its position in shares of lululemon athletica by 187.5% during 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. Tradewinds Capital Management LLC lifted its position in shares of lululemon athletica by 18,400.0% during the 3rd quarter. Tradewinds Capital Management LLC now owns 185 shares of the apparel retailer's stock valued at $33,000 after acquiring an additional 184 shares during the last quarter. Migdal Insurance & Financial Holdings Ltd. boosted its stake in shares of lululemon athletica by 464.0% during the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 141 shares of the apparel retailer's stock worth $34,000 after acquiring an additional 116 shares in the last quarter. Finally, Golden State Wealth Management LLC boosted its stake in shares of lululemon athletica by 129.4% during the 3rd quarter. Golden State Wealth Management LLC now owns 195 shares of the apparel retailer's stock worth $35,000 after acquiring an additional 110 shares in the last quarter. 85.20% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on LULU. Weiss Ratings raised lululemon athletica from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, February 5th. Daiwa Securities Group increased their price target on lululemon athletica from $174.00 to $205.00 and gave the company a "neutral" rating in a research report on Tuesday, December 16th. Wells Fargo & Company lifted their price target on lululemon athletica from $160.00 to $175.00 and gave the stock an "equal weight" rating in a research note on Friday, December 12th. BTIG Research cut their price objective on lululemon athletica from $303.00 to $250.00 and set a "buy" rating on the stock in a report on Thursday. Finally, Citigroup upped their price objective on shares of lululemon athletica from $190.00 to $210.00 and gave the company a "neutral" rating in a research note on Friday, December 12th. Two investment analysts have rated the stock with a Strong Buy rating, two have assigned a Buy rating, thirty have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $223.40.

lululemon athletica Trading Down 0.3%

NASDAQ:LULU opened at $157.78 on Friday. The business's fifty day moving average price is $184.18 and its 200 day moving average price is $182.53. The firm has a market capitalization of $18.51 billion, a price-to-earnings ratio of 10.93, a PEG ratio of 9.96 and a beta of 1.00. lululemon athletica inc. has a 1-year low of $156.64 and a 1-year high of $348.50.

lululemon athletica (NASDAQ:LULU - Get Free Report) last announced its quarterly earnings data on Thursday, December 11th. The apparel retailer reported $2.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.22 by $0.37. lululemon athletica had a return on equity of 39.78% and a net margin of 15.72%.The firm had revenue of $2.57 billion during the quarter, compared to the consensus estimate of $2.48 billion. During the same period in the prior year, the business earned $2.53 EPS. The business's revenue for the quarter was up 7.1% on a year-over-year basis. Equities analysts forecast that lululemon athletica inc. will post 14.36 earnings per share for the current year.

lululemon athletica News Roundup

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

• Positive Sentiment: Product and brand strength highlighted in lifestyle coverage supports demand resilience for lululemon’s core apparel and technical leggings, reinforcing the company’s premium positioning. I work out daily—Lululemon, Brooks, Vuori and more keep me cool and comfortable while in motion
• Positive Sentiment: Coverage that includes LULU among “cash-producing” stocks underscores the company’s ability to generate cash, a plus for flexibility on buybacks, investment or weathering slower comps. 3 Cash-Producing Stocks to Research Further
• Neutral Sentiment: Quarterly outlook and estimate roundups (Wall Street metrics for Q4/FY) provide detail investors will watch for signs of margin recovery, wholesale trends and Outerknown/men’s/growth initiatives; these are informational but could move the stock when compared to company guidance. Unveiling Lululemon (LULU) Q4 Outlook: Wall Street Estimates for Key Metrics
• Negative Sentiment: Founder Chip Wilson publicly urged CEO candidates to beware an “unfit” board and called for board refreshment, escalating governance concerns during the CEO search; as a large shareholder, his comments raise investor uncertainty about leadership, strategy continuity and potential proxy tensions. Chip Wilson to lululemon CEO Candidates: Beware a Board Unfit to Support Visionary Leadership
• Negative Sentiment: Telsey Advisory Group assigned a Market Perform rating, which signals tepid near-term expectations from a sell-side perspective and can weigh on sentiment until clearer evidence of top-line acceleration or margin improvement appears. lululemon athletica NASDAQ: LULU Earns Market Perform Rating from Telsey Advisory Group

Insider Buying and Selling at lululemon athletica

In other news, insider Celeste Burgoyne sold 13,511 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $204.00, for a total value of $2,756,244.00. Following the completion of the sale, the insider directly owned 5,318 shares of the company's stock, valued at $1,084,872. This represents a 71.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.54% of the stock is owned by corporate insiders.

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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