lululemon athletica inc. (NASDAQ:LULU) Given Consensus Rating of "Reduce" by Brokerages

Key Points

• Analysts remain cautious on lululemon: Thirty-two firms give the stock a consensus “Reduce” rating, with six sells, 24 holds, one buy and one strong buy. The average 12-month price target is approximately $148.35, while several analysts recently lowered their targets, including BNP Paribas Exane to $88 and Morgan Stanley to $93.
• Lululemon’s shares opened at $119.03, near the lower end of their 52-week range of $104.44 to $225.98, with the 200-day moving average at $148.71. The stock has a market capitalization of about $14.13 billion.
• The company slightly exceeded quarterly expectations, reporting $1.69 EPS and $2.47 billion in revenue versus estimates of $1.67 and $2.44 billion, respectively. Revenue increased 4.3% year over year, while an insider purchased approximately $500,000 of shares and institutional investors own 85.2% of the stock.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report) has received an average rating of "Reduce" from the thirty-two research firms that are presently covering the stock, Marketbeat.com reports. Six analysts have rated the stock with a sell recommendation, twenty-four have given a hold recommendation, one has assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $148.3462.

Several equities analysts recently weighed in on LULU shares. Freedom Capital raised shares of lululemon athletica from a "strong sell" rating to a "hold" rating in a research note on Friday, June 5th. Piper Sandler cut their price target on shares of lululemon athletica from $130.00 to $110.00 and set a "neutral" rating for the company in a research note on Friday, June 5th. JPMorgan Chase & Co. decreased their price objective on shares of lululemon athletica from $173.00 to $149.00 and set a "neutral" rating for the company in a research report on Friday, June 5th. Morgan Stanley restated an "underweight" rating and set a $93.00 price objective on shares of lululemon athletica in a research note on Monday, July 6th. Finally, BNP Paribas Exane cut shares of lululemon athletica from a "neutral" rating to an "underperform" rating and set a $88.00 target price on the stock. in a report on Friday, June 5th.

Insider Activity at lululemon athletica

In related news, Director Charles V. Bergh purchased 4,275 shares of the stock in a transaction on Monday, June 15th. The shares were purchased at an average cost of $117.05 per share, with a total value of $500,388.75. Following the acquisition, the director directly owned 10,365 shares in the company, valued at $1,213,223.25. The trade was a 70.20% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. 0.54% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in LULU. Silver Coast Investments LLC raised its position in shares of lululemon athletica by 18.1% in the 2nd quarter. Silver Coast Investments LLC now owns 2,018 shares of the apparel retailer's stock valued at $230,000 after buying an additional 309 shares in the last quarter. Pine Valley Investments Ltd Liability Co boosted its position in shares of lululemon athletica by 30.3% during the 2nd quarter. Pine Valley Investments Ltd Liability Co now owns 21,535 shares of the apparel retailer's stock worth $2,459,000 after acquiring an additional 5,005 shares in the last quarter. Whelan Financial increased its stake in lululemon athletica by 16.9% in the second quarter. Whelan Financial now owns 6,100 shares of the apparel retailer's stock valued at $696,000 after acquiring an additional 881 shares during the last quarter. Benjamin Edwards Inc. increased its stake in lululemon athletica by 14.8% in the second quarter. Benjamin Edwards Inc. now owns 3,965 shares of the apparel retailer's stock valued at $453,000 after acquiring an additional 512 shares during the last quarter. Finally, Dynamic Wealth Strategies LLC increased its stake in lululemon athletica by 22.6% in the second quarter. Dynamic Wealth Strategies LLC now owns 499 shares of the apparel retailer's stock valued at $57,000 after acquiring an additional 92 shares during the last quarter. Institutional investors and hedge funds own 85.20% of the company's stock.

lululemon athletica Price Performance

NASDAQ LULU opened at $119.03 on Thursday. lululemon athletica has a one year low of $104.44 and a one year high of $225.98. The firm has a market cap of $14.13 billion, a P/E ratio of 9.61, a P/E/G ratio of 3.94 and a beta of 0.88. The stock's 50-day moving average is $118.58 and its 200-day moving average is $148.71.

lululemon athletica (NASDAQ:LULU - Get Free Report) last issued its quarterly earnings data on Thursday, June 4th. The apparel retailer reported $1.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.67 by $0.02. The company 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 was up 4.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.60 earnings per share. 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. Equities analysts anticipate that lululemon athletica will post 10.94 EPS for the current year.

About lululemon athletica

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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