lululemon athletica (NASDAQ:LULU) Sets New 1-Year Low After Analyst Downgrade

Key Points

• Lululemon athletica shares reached a new 52-week low at $161.62 following a downgrade from HSBC Global Research from a strong-buy to a hold rating.
• Multiple analysts have adjusted their price targets for lululemon, with BTIG Research lowering expectations from $375 to $303 while the consensus price target is at $243.17.
• CEO Calvin McDonald recently sold 27,049 shares, reducing his position by 19.66%, raising concerns about insider confidence in the company's future performance.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report) shares hit a new 52-week low during mid-day trading on Friday after Hsbc Global Res downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $162.11 and last traded at $161.62, with a volume of 1085866 shares changing hands. The stock had previously closed at $165.78.

LULU has been the topic of a number of other research reports. BTIG Research decreased their target price on shares of lululemon athletica from $375.00 to $303.00 and set a "buy" rating on the stock in a research report on Friday, September 5th. Piper Sandler reduced their price target on shares of lululemon athletica from $200.00 to $165.00 and set a "neutral" rating on the stock in a research report on Friday, September 5th. Stifel Nicolaus reissued a "hold" rating and set a $205.00 price target (down previously from $324.00) on shares of lululemon athletica in a research report on Friday, September 5th. Truist Financial cut shares of lululemon athletica from a "buy" rating to a "hold" rating and set a $170.00 price target on the stock. in a research report on Friday, September 5th. Finally, William Blair lowered shares of lululemon athletica from an "outperform" rating to a "market perform" rating in a research note on Friday, September 5th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, twenty-three have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $243.17.

Insiders Place Their Bets

In related news, CEO Calvin Mcdonald sold 27,049 shares of the business's stock in a transaction dated Friday, June 27th. The shares were sold at an average price of $235.69, for a total value of $6,375,178.81. Following the completion of the transaction, the chief executive officer owned 110,564 shares of the company's stock, valued at approximately $26,058,829.16. The trade was a 19.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.54% of the company's stock.

Hedge Funds Weigh In On lululemon athletica

Several institutional investors and hedge funds have recently made changes to their positions in the business. Manhattan West Asset Management LLC boosted its stake in shares of lululemon athletica by 5.4% during the 1st quarter. Manhattan West Asset Management LLC now owns 724 shares of the apparel retailer's stock valued at $205,000 after buying an additional 37 shares during the last quarter. Horizon Investments LLC lifted its stake in lululemon athletica by 2.4% during the first quarter. Horizon Investments LLC now owns 1,610 shares of the apparel retailer's stock worth $456,000 after purchasing an additional 38 shares during the last quarter. Carolinas Wealth Consulting LLC lifted its stake in lululemon athletica by 30.7% during the fourth quarter. Carolinas Wealth Consulting LLC now owns 166 shares of the apparel retailer's stock worth $63,000 after purchasing an additional 39 shares during the last quarter. Moody National Bank Trust Division lifted its stake in lululemon athletica by 1.2% during the first quarter. Moody National Bank Trust Division now owns 3,168 shares of the apparel retailer's stock worth $897,000 after purchasing an additional 39 shares during the last quarter. Finally, GM Advisory Group LLC lifted its stake in lululemon athletica by 2.0% during the first quarter. GM Advisory Group LLC now owns 1,992 shares of the apparel retailer's stock worth $564,000 after purchasing an additional 40 shares during the last quarter. 85.20% of the stock is currently owned by hedge funds and other institutional investors.

lululemon athletica Stock Down 2.7%

The company has a 50 day moving average of $206.37 and a 200-day moving average of $260.59. The stock has a market capitalization of $19.34 billion, a P/E ratio of 10.96, a PEG ratio of 6.76 and a beta of 1.12.

lululemon athletica (NASDAQ:LULU - Get Free Report) last announced its quarterly earnings data on Thursday, September 4th. The apparel retailer reported $3.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.86 by $0.24. The firm had revenue of $2.53 billion for the quarter, compared to analysts' expectations of $2.55 billion. lululemon athletica had a return on equity of 42.05% and a net margin of 16.38%.The firm's revenue for the quarter was up 6.5% on a year-over-year basis. During the same period last year, the business posted $3.15 earnings per share. lululemon athletica has set its FY 2025 guidance at 12.770-12.970 EPS. Q3 2025 guidance at 2.180-2.230 EPS. Equities analysts forecast that lululemon athletica inc. will post 14.36 EPS for the current fiscal year.

About lululemon athletica

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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