lululemon athletica (NASDAQ:LULU) Hits New 52-Week 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.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report) shares hit 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 changing hands. The stock had previously closed at $216.59.

A number of other equities analysts have also weighed in on the stock. Morgan Stanley reiterated an "equal weight" rating and issued a $280.00 price objective (down from $346.00) on shares of lululemon athletica in a research report on Monday, June 9th. Citigroup decreased their price target on shares of lululemon athletica from $325.00 to $270.00 and set a "neutral" rating on the stock in a report on Friday, June 6th. Barclays dropped their price objective on shares of lululemon athletica from $276.00 to $270.00 and set an "equal weight" rating for the company in a research report on Monday, June 9th. BMO Capital Markets decreased 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. Finally, Truist Financial reduced their target price on lululemon athletica from $297.00 to $290.00 and set a "buy" rating on the stock in a report on Friday, June 6th. One research analyst has rated the stock with a sell rating, thirteen have given a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, lululemon athletica has a consensus rating of "Moderate Buy" and an average target price of $333.57.

Insider Activity

In other news, CEO Calvin Mcdonald sold 27,049 shares of the stock in a transaction dated 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 transaction, the chief executive officer owned 110,564 shares of the company's stock, valued at approximately $26,058,829.16. This trade represents a 19.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.54% of the company's stock.

Institutional Trading of lululemon athletica

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in shares of lululemon athletica by 1.2% during the 1st quarter. Vanguard Group Inc. now owns 13,266,929 shares of the apparel retailer's stock valued at $3,755,337,000 after purchasing an additional 157,764 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of lululemon athletica by 3.3% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 5,010,908 shares of the apparel retailer's stock valued at $1,418,389,000 after buying an additional 162,295 shares during the period. Alliancebernstein L.P. raised its stake in shares of lululemon athletica by 9.0% during the 1st quarter. Alliancebernstein L.P. now owns 4,792,294 shares of the apparel retailer's stock worth $1,356,507,000 after purchasing an additional 394,706 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of lululemon athletica by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 2,485,289 shares of the apparel retailer's stock valued at $947,682,000 after purchasing an additional 10,461 shares during the last quarter. Finally, Capital World Investors raised its stake in shares of lululemon athletica by 34.6% in the 4th quarter. Capital World Investors now owns 2,163,484 shares of the apparel retailer's stock valued at $827,338,000 after acquiring an additional 556,406 shares in the last quarter. Institutional investors own 85.20% of the company's stock.

lululemon athletica Trading Down 3.5%

The firm has a market capitalization of $24.75 billion, a P/E ratio of 13.99, a P/E/G ratio of 1.82 and a beta of 1.17. The company's fifty day moving average is $255.63 and its 200-day moving average is $303.23.

lululemon athletica (NASDAQ:LULU - Get Free Report) last posted its quarterly earnings data on Thursday, June 5th. The apparel retailer reported $2.60 earnings per share (EPS) for the quarter, hitting the consensus estimate of $2.60. The firm had revenue of $2.37 billion for 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 revenue for the quarter was up 7.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.54 EPS. On average, equities research analysts anticipate that lululemon athletica inc. will post 14.36 EPS for the current 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.