lululemon athletica (NASDAQ:LULU) Reaches New 52-Week Low - Here's Why

Key Points

• lululemon athletica shares hit a new 52-week low, falling as low as $118.38 amid recent weakness, despite the stock last trading slightly higher at $121.26.
• Investor concern is being fueled by an ongoing proxy fight with founder Chip Wilson, as lululemon urges shareholders to reject his board slate and support its turnaround plan ahead of the June 25 annual meeting.
• Wall Street sentiment has turned cautious, with multiple analysts cutting price targets and the consensus rating sitting at Hold, even though lululemon recently posted earnings and revenue that topped expectations.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report) reached a new 52-week low on Monday . The stock traded as low as $118.38 and last traded at $121.2610, with a volume of 367462 shares. The stock had previously closed at $119.14.

Key lululemon athletica News

Here are the key news stories impacting lululemon athletica this week:

• Positive Sentiment: lululemon highlighted its refreshed board and argued that its director nominees are better positioned to drive growth and improve shareholder value. lululemon Highlights Strength of its Refreshed Board
• Positive Sentiment: The company is taking a firm stance in the proxy fight, telling shareholders to reject Chip Wilson’s board slate and back lululemon’s turnaround strategy. Lululemon Urges Shareholders to Reject Chip Wilson's Proxy Fight
• Neutral Sentiment: Definitive proxy materials have been filed, and shareholders of record as of April 30 will vote at the annual meeting on June 25. lululemon Highlights Strength of its Refreshed Board
• Negative Sentiment: The proxy fight itself signals continued internal conflict and uncertainty, with settlement talks reportedly collapsing after Wilson pushed for board seats and reimbursement, which could distract management. Lululemon rejects Chip Wilson board nominees ahead of annual meeting

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on LULU shares. Jefferies Financial Group dropped their price target on lululemon athletica from $170.00 to $145.00 and set a "hold" rating for the company in a research note on Tuesday, April 28th. Weiss Ratings lowered lululemon athletica from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, March 31st. UBS Group decreased their price target on lululemon athletica from $189.00 to $176.00 and set a "neutral" rating for the company in a report on Wednesday, March 18th. BTIG Research decreased their target price on lululemon athletica from $250.00 to $225.00 and set a "buy" rating for the company in a research report on Wednesday, March 18th. Finally, Wells Fargo & Company decreased their target price on lululemon athletica from $175.00 to $150.00 and set an "equal weight" rating for the company in a research report on Wednesday, March 18th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, twenty-eight have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $203.80.

lululemon athletica Trading Up 1.0%

The stock has a 50 day simple moving average of $152.48 and a 200 day simple moving average of $174.49. The firm has a market capitalization of $14.52 billion, a PE ratio of 9.05, a PEG ratio of 3.66 and a beta of 0.90.

lululemon athletica (NASDAQ:LULU - Get Free Report) last announced its quarterly earnings results on Tuesday, March 17th. The apparel retailer reported $5.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.78 by $0.23. The company had revenue of $3.64 billion for the quarter, compared to the consensus estimate of $3.59 billion. lululemon athletica had a return on equity of 34.82% and a net margin of 14.22%.lululemon athletica's revenue was up .0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $6.14 EPS. As a group, equities analysts anticipate that lululemon athletica inc. will post 12.3 earnings per share for the current year.

Insider Activity at lululemon athletica

In other news, CEO Andre Maestrini purchased 3,275 shares of the stock in a transaction dated Wednesday, April 1st. The shares were purchased at an average cost of $151.02 per share, with a total value of $494,590.50. Following the acquisition, the chief executive officer directly owned 34,551 shares of the company's stock, valued at $5,217,892.02. This represents a 10.47% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Charles V. Bergh bought 6,090 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The stock was bought at an average cost of $164.20 per share, for a total transaction of $999,978.00. Following the completion of the acquisition, the director owned 6,090 shares in the company, valued at $999,978. This trade represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.54% of the stock is currently owned by insiders.

Institutional Investors Weigh In On lululemon athletica

Institutional investors and hedge funds have recently bought and sold shares of the business. Uniplan Investment Counsel Inc. purchased a new position in lululemon athletica in the fourth quarter worth about $26,000. Integrated Financial Solutions Inc. bought a new stake in shares of lululemon athletica during the fourth quarter valued at approximately $26,000. GoalVest Advisory LLC bought a new stake in shares of lululemon athletica during the fourth quarter valued at approximately $27,000. Elyxium Wealth LLC purchased a new position in shares of lululemon athletica in the 4th quarter valued at $31,000. Finally, Cornerstone Planning Group LLC increased its holdings in shares of lululemon athletica by 81.9% in the 3rd quarter. Cornerstone Planning Group LLC now owns 151 shares of the apparel retailer's stock valued at $25,000 after acquiring an additional 68 shares during the period. 85.20% of the stock is owned by institutional investors.

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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