lululemon athletica (NASDAQ:LULU) Hits New 1-Year Low Following Analyst Downgrade

Key Points

• lululemon athletica shares hit a new 52-week low of $213.88 after Piper Sandler downgraded the stock's price target from $270.00 to $200.00 while maintaining a neutral rating.
• Multiple brokerages have also revised their ratings and price targets, with a consensus price target of $333.57 and a general rating of "Moderate Buy".
• CEO Calvin McDonald sold over 27,000 shares, leading to a 19.66% decrease in his ownership stake, raising concerns among investors.

Shares of lululemon athletica inc. (NASDAQ:LULU - Get Free Report) reached a new 52-week low during trading on Wednesday after Piper Sandler lowered their price target on the stock from $270.00 to $200.00. Piper Sandler currently has a neutral rating on the stock. lululemon athletica traded as low as $213.88 and last traded at $214.04, with a volume of 2580345 shares traded. The stock had previously closed at $216.59.

Several other research firms also recently weighed in on LULU. Cfra Research raised shares of lululemon athletica from a "hold" rating to a "strong-buy" rating in a research report on Monday, March 31st. BMO Capital Markets reduced their target price on shares of lululemon athletica from $302.00 to $250.00 and set a "market perform" rating for the company in a research note on Friday, June 6th. Evercore ISI lifted their target price on shares of lululemon athletica from $320.00 to $400.00 and gave the company an "outperform" rating in a research note on Tuesday, June 3rd. Robert W. Baird dropped their price objective on lululemon athletica from $350.00 to $340.00 and set an "outperform" rating on the stock in a research note on Friday, June 6th. Finally, CICC Research reiterated a "market perform" rating and set a $280.49 target price on shares of lululemon athletica in a research note on Monday, June 9th. One analyst has rated the stock with a sell rating, thirteen have issued a hold rating, sixteen have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $333.57.

Insider Buying and Selling at lululemon athletica

In other lululemon athletica news, CEO Calvin Mcdonald sold 27,049 shares of the firm's stock in a transaction that occurred 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 directly owned 110,564 shares in the company, valued at approximately $26,058,829.16. This trade represents a 19.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 0.54% of the stock is owned by corporate insiders.

Institutional Trading of lululemon athletica

A number of hedge funds and other institutional investors have recently made changes to their positions in LULU. Price T Rowe Associates Inc. MD raised its holdings in shares of lululemon athletica by 95.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,848,613 shares of the apparel retailer's stock valued at $1,854,160,000 after purchasing an additional 2,371,079 shares during the last quarter. GAMMA Investing LLC boosted its position in lululemon athletica by 37,062.1% during the first quarter. GAMMA Investing LLC now owns 563,006 shares of the apparel retailer's stock worth $159,364,000 after purchasing an additional 561,491 shares during the period. Capital World Investors boosted its position in lululemon athletica by 34.6% during the fourth quarter. Capital World Investors now owns 2,163,484 shares of the apparel retailer's stock worth $827,338,000 after purchasing an additional 556,406 shares during the period. T. Rowe Price Investment Management Inc. boosted its position in shares of lululemon athletica by 151.6% in the first quarter. T. Rowe Price Investment Management Inc. now owns 770,336 shares of the apparel retailer's stock valued at $218,052,000 after acquiring an additional 464,186 shares during the period. Finally, Nuveen LLC bought a new stake in shares of lululemon athletica in the first quarter valued at about $123,894,000. 85.20% of the stock is currently owned by institutional investors and hedge funds.

lululemon athletica Stock Down 3.6%

The firm has a market cap of $23.17 billion, a price-to-earnings ratio of 13.10, a P/E/G ratio of 1.71 and a beta of 1.17. The stock has a 50 day moving average of $248.66 and a 200 day moving average of $299.85.

lululemon athletica (NASDAQ:LULU - Get Free Report) last issued its earnings results on Thursday, June 5th. The apparel retailer reported $2.60 EPS for the quarter, hitting the consensus estimate of $2.60. The firm had revenue of $2.37 billion during the quarter, compared to the consensus estimate of $2.36 billion. lululemon athletica had a return on equity of 43.48% and a net margin of 16.82%. The business's quarterly revenue was up 7.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.54 earnings per share. As a group, analysts predict that lululemon athletica inc. will post 14.36 EPS for the current fiscal year.

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.