lululemon athletica inc. (NASDAQ:LULU) Receives Average Recommendation of "Reduce" from Analysts

Key Points

• Analysts are cautious on Lululemon: The stock has an average rating of "Reduce" from 32 brokerages, with most analysts assigning hold or sell-equivalent views. The average 12-month price target is about $152.88.
• Several firms cut their targets recently: Wells Fargo, UBS, Piper Sandler, Telsey Advisory Group, and BNP Paribas Exane all lowered price targets or downgraded the stock, reflecting weakening sentiment around the shares.
• Recent results were mixed but guidance remains in focus: Lululemon beat quarterly EPS and revenue estimates for its latest quarter, but its stock has fallen sharply from its 52-week high and the company guided FY2026 EPS at 10.95 to 11.15.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report) has been given an average rating of "Reduce" by the thirty-two brokerages that are currently covering the firm, MarketBeat reports. Four equities research analysts have rated the stock with a sell rating, twenty-six have issued a hold rating, one has assigned a buy rating and one has issued a strong buy rating on the company. The average 12-month price target among analysts that have covered the stock in the last year is $152.8846.

Several research analysts have recently weighed in on the stock. Wells Fargo & Company decreased their target price on shares of lululemon athletica from $150.00 to $110.00 and set an "equal weight" rating for the company in a research note on Friday, June 5th. UBS Group cut their price objective on shares of lululemon athletica from $153.00 to $124.00 and set a "neutral" rating on the stock in a report on Sunday, June 7th. BNP Paribas Exane downgraded lululemon athletica from a "neutral" rating to an "underperform" rating and set a $88.00 target price for the company. in a research note on Friday, June 5th. Piper Sandler dropped their target price on lululemon athletica from $130.00 to $110.00 and set a "neutral" rating on the stock in a research report on Friday, June 5th. Finally, Telsey Advisory Group dropped their target price on lululemon athletica from $175.00 to $122.00 and set a "market perform" rating on the stock in a research report on Friday, June 5th.

Insider Activity

In other lululemon athletica news, insider Nicole Neuburger sold 622 shares of lululemon athletica 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 of the company's stock, valued at $3,084,116. The trade was a 3.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Charles V. Bergh bought 4,275 shares of the stock in a transaction on Monday, June 15th. The shares were acquired at an average price of $117.05 per share, with a total value of $500,388.75. Following the purchase, the director owned 10,365 shares of the company's stock, valued at $1,213,223.25. The trade was a 70.20% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.54% of the stock is currently owned by insiders.

Institutional Investors Weigh In On lululemon athletica

A number of hedge funds have recently added to or reduced their stakes in the stock. Silverleafe Capital Partners LLC raised its stake in lululemon athletica by 11.0% during the 2nd quarter. Silverleafe Capital Partners LLC now owns 25,300 shares of the apparel retailer's stock valued at $2,889,000 after acquiring an additional 2,500 shares in the last quarter. CX Institutional boosted its position in lululemon athletica by 381.3% during the 2nd quarter. CX Institutional now owns 361 shares of the apparel retailer's stock worth $41,000 after acquiring an additional 286 shares during the period. Pacer Advisors Inc. grew its stake in shares of lululemon athletica by 15.4% in the first quarter. Pacer Advisors Inc. now owns 415,398 shares of the apparel retailer's stock worth $63,597,000 after purchasing an additional 55,438 shares in the last quarter. Rathbones Group PLC grew its stake in shares of lululemon athletica by 17.5% in the first quarter. Rathbones Group PLC now owns 7,347 shares of the apparel retailer's stock worth $1,125,000 after purchasing an additional 1,094 shares in the last quarter. Finally, Pine Valley Investments Ltd Liability Co increased its holdings in shares of lululemon athletica by 585.6% during the first quarter. Pine Valley Investments Ltd Liability Co now owns 16,530 shares of the apparel retailer's stock valued at $2,531,000 after purchasing an additional 14,119 shares during the period. 85.20% of the stock is currently owned by institutional investors.

lululemon athletica Price Performance

LULU opened at $118.43 on Friday. The stock has a market capitalization of $14.05 billion, a price-to-earnings ratio of 9.56, a price-to-earnings-growth ratio of 3.81 and a beta of 0.88. The business has a 50-day moving average of $123.70 and a two-hundred day moving average of $160.98. lululemon athletica has a 12 month low of $104.44 and a 12 month high of $249.97.

lululemon athletica (NASDAQ:LULU - Get Free Report) last announced its quarterly earnings data on Thursday, June 4th. The apparel retailer reported $1.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.67 by $0.02. lululemon athletica had a net margin of 13.03% and a return on equity of 31.26%. The company had revenue of $2.47 billion during the quarter, compared to analysts' expectations of $2.44 billion. During the same period in the previous year, the company earned $2.60 EPS. The business's quarterly revenue was up 4.3% compared to the same quarter last year. 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 research analysts anticipate that lululemon athletica will post 11.14 earnings per share 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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