lululemon athletica (NASDAQ:LULU) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research has downgraded lululemon athletica from a "hold" to a "strong sell" rating, suggesting a negative outlook for the stock.
• Several analysts have reduced their price targets for lululemon athletica, with Goldman Sachs lowering theirs from $232.00 to $200.00.
• Despite a strong quarterly earnings report, lululemon athletica's shares have shown a decline, currently trading around $165.69, which is significantly lower than its 12-month high of $423.32.

lululemon athletica (NASDAQ:LULU - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Monday,Zacks.com reports.

Several other research analysts also recently commented on LULU. The Goldman Sachs Group lowered their price objective on shares of lululemon athletica from $232.00 to $200.00 and set a "neutral" rating for the company in a research report on Friday, September 5th. Telsey Advisory Group reiterated a "market perform" rating and set a $200.00 price target (down from $360.00) on shares of lululemon athletica in a report on Friday, September 5th. BMO Capital Markets lowered their price target on shares of lululemon athletica from $302.00 to $250.00 and set a "market perform" rating for the company in a report on Friday, June 6th. Needham & Company LLC lowered their price target on shares of lululemon athletica from $238.00 to $192.00 and set a "buy" rating for the company in a report on Friday, September 5th. Finally, Citigroup lowered their price target on shares of lululemon athletica from $220.00 to $190.00 and set a "neutral" rating for the company in a report on Friday, September 5th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twenty-one have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, lululemon athletica has a consensus rating of "Hold" and an average price target of $245.79.

lululemon athletica Stock Down 1.4%

Shares of NASDAQ:LULU opened at $165.69 on Monday. lululemon athletica has a 12-month low of $162.80 and a 12-month high of $423.32. The stock has a market cap of $19.86 billion, a PE ratio of 11.26, a P/E/G ratio of 6.93 and a beta of 1.12. The business has a 50 day moving average of $209.66 and a 200-day moving average of $262.67.

lululemon athletica (NASDAQ:LULU - Get Free Report) last issued its quarterly earnings data on Thursday, September 4th. The apparel retailer reported $3.10 earnings per share (EPS) for the quarter, topping 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 company had revenue of $2.53 billion during the quarter, compared to analysts' expectations of $2.55 billion. During the same quarter in the previous year, the company posted $3.15 earnings per share. The business'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. Equities research analysts expect that lululemon athletica will post 14.36 earnings per share for the current year.

Insider Buying and Selling at lululemon athletica

In other lululemon athletica news, CEO Calvin Mcdonald sold 27,049 shares of the company's stock in a transaction on Friday, June 27th. The shares were sold at an average price of $235.69, for a total transaction of $6,375,178.81. Following the sale, the chief executive officer owned 110,564 shares of the company's stock, valued at approximately $26,058,829.16. This represents a 19.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.54% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On lululemon athletica

A number of institutional investors and hedge funds have recently made changes to their positions in LULU. N.E.W. Advisory Services LLC purchased a new stake in lululemon athletica in the 1st quarter valued at about $25,000. Cornerstone Planning Group LLC increased its stake in lululemon athletica by 506.3% in the 1st quarter. Cornerstone Planning Group LLC now owns 97 shares of the apparel retailer's stock valued at $26,000 after buying an additional 81 shares during the last quarter. Flaharty Asset Management LLC purchased a new stake in lululemon athletica in the 1st quarter valued at about $29,000. Zions Bancorporation National Association UT purchased a new stake in lululemon athletica in the 1st quarter valued at about $31,000. Finally, Blue Trust Inc. increased its stake in lululemon athletica by 96.8% in the 2nd quarter. Blue Trust Inc. now owns 124 shares of the apparel retailer's stock valued at $29,000 after buying an additional 61 shares during the last quarter. Institutional investors and hedge funds own 85.20% of the company's stock.

lululemon athletica Company Profile

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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