Jefferies Financial Group Has Lowered Expectations for lululemon athletica (NASDAQ:LULU) Stock Price

Key Points

• Jefferies Financial Group has lowered its target price for lululemon athletica (NASDAQ:LULU) from $150 to $120, indicating a potential downside of 31.66% from the stock's previous close.
• Multiple analysts have revised their ratings and price targets for lululemon, with KeyCorp downgrading it to "sector weight" and Rothschild & Co Redburn reducing the target to $160.
• The company's most recent earnings report showed a profit of $3.10 per share, which was better than analysts' expectations, although revenue slightly missed estimates at $2.53 billion.

lululemon athletica (NASDAQ:LULU - Get Free Report) had its target price reduced by equities research analysts at Jefferies Financial Group from $150.00 to $120.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has an "underperform" rating on the apparel retailer's stock. Jefferies Financial Group's target price points to a potential downside of 31.66% from the company's previous close.

Several other research analysts have also commented on LULU. KeyCorp lowered lululemon athletica from an "overweight" rating to a "sector weight" rating in a report on Tuesday, September 9th. Rothschild & Co Redburn decreased their price target on lululemon athletica from $230.00 to $160.00 and set a "sell" rating on the stock in a research note on Friday, September 12th. CICC Research reissued a "market perform" rating and set a $280.49 price target on shares of lululemon athletica in a research report on Monday, June 9th. Barclays reduced their price objective on shares of lululemon athletica from $209.00 to $180.00 and set an "equal weight" rating for the company in a report on Friday, September 5th. Finally, Wells Fargo & Company dropped their target price on lululemon athletica from $205.00 to $160.00 and set an "equal weight" rating on the stock in a report on Friday, September 5th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, twenty-six have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $232.29.

lululemon athletica Price Performance

NASDAQ:LULU opened at $175.59 on Monday. The firm has a market capitalization of $20.82 billion, a price-to-earnings ratio of 11.94, a PEG ratio of 10.98 and a beta of 1.07. The business has a 50 day simple moving average of $187.64 and a 200-day simple moving average of $240.86. lululemon athletica has a 1 year low of $159.25 and a 1 year high of $423.32.

lululemon athletica (NASDAQ:LULU - Get Free Report) last issued its 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. lululemon athletica had a return on equity of 42.05% and a net margin of 16.38%.The business had revenue of $2.53 billion during the quarter, compared to analyst estimates of $2.55 billion. During the same period in the previous year, the company posted $3.15 EPS. lululemon athletica's 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. As a group, analysts expect that lululemon athletica will post 14.36 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Nicole Neuburger sold 615 shares of the business's stock in a transaction that occurred on Tuesday, September 30th. The stock was sold at an average price of $178.00, for a total value of $109,470.00. Following the transaction, the insider owned 8,993 shares in the company, valued at $1,600,754. The trade was a 6.40% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.54% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Sandler Capital Management bought a new position in shares of lululemon athletica during the first quarter valued at about $484,000. Twin Capital Management Inc. grew its position in lululemon athletica by 58.3% during the 1st quarter. Twin Capital Management Inc. now owns 3,676 shares of the apparel retailer's stock worth $1,041,000 after acquiring an additional 1,354 shares during the last quarter. Narwhal Capital Management increased its stake in lululemon athletica by 262.7% in the 1st quarter. Narwhal Capital Management now owns 18,777 shares of the apparel retailer's stock worth $5,315,000 after purchasing an additional 13,600 shares during the period. Sawgrass Asset Management LLC bought a new stake in lululemon athletica in the first quarter valued at approximately $9,209,000. Finally, WealthPlan Investment Management LLC boosted its stake in shares of lululemon athletica by 26.9% during the first quarter. WealthPlan Investment Management LLC now owns 7,647 shares of the apparel retailer's stock valued at $2,165,000 after purchasing an additional 1,622 shares during the period. 85.20% of the stock is owned by hedge funds and other institutional investors.

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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