lululemon athletica (NASDAQ:LULU) Sets New 12-Month Low on Analyst Downgrade

Key Points

• lululemon athletica shares have reached a new 52-week low of $190.19 after Barclays downgraded the stock's price target from $270.00 to $209.00, maintaining an equal weight rating.
• Multiple analysts have reduced their price targets for lululemon, with varying ratings, resulting in an average price target of $329.91 and a consensus rating of "Moderate Buy."
• CEO Calvin McDonald sold 27,049 shares of lululemon stock, marking a 19.66% decrease in his position, which drew attention as insider activity in the company.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report) hit a new 52-week low during trading on Thursday after Barclays lowered their price target on the stock from $270.00 to $209.00. Barclays currently has an equal weight rating on the stock. lululemon athletica traded as low as $190.19 and last traded at $191.76, with a volume of 1361293 shares trading hands. The stock had previously closed at $196.51.

Other equities analysts have also issued reports about the company. KeyCorp reduced their price target on lululemon athletica from $400.00 to $350.00 and set an "overweight" rating on the stock in a research report on Friday, June 6th. Wells Fargo & Company dropped their target price on lululemon athletica from $270.00 to $225.00 and set an "equal weight" rating on the stock in a report on Monday. Jefferies Financial Group dropped their target price on lululemon athletica from $220.00 to $200.00 and set an "underperform" rating on the stock in a report on Friday, June 6th. Piper Sandler decreased their price target on lululemon athletica from $270.00 to $200.00 and set a "neutral" rating for the company in a research note on Tuesday, July 29th. Finally, Morgan Stanley reiterated an "equal weight" rating and set a $280.00 price objective (down previously from $346.00) on shares of lululemon athletica in a research report on Monday, June 9th. One research analyst has rated the stock with a sell rating, thirteen have given a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, lululemon athletica has an average rating of "Moderate Buy" and an average price target of $329.91.

Insider Activity

In related news, CEO Calvin Mcdonald sold 27,049 shares of lululemon athletica 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 transaction, the chief executive officer owned 110,564 shares in the company, valued at approximately $26,058,829.16. The trade was a 19.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.54% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On lululemon athletica

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its stake in shares of lululemon athletica by 1.2% in 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 holdings in shares of lululemon athletica by 3.3% in the first 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 acquiring an additional 162,295 shares in the last quarter. Alliancebernstein L.P. boosted its holdings in lululemon athletica by 9.0% during the first quarter. Alliancebernstein L.P. now owns 4,792,294 shares of the apparel retailer's stock worth $1,356,507,000 after buying an additional 394,706 shares in the last quarter. Capital World Investors boosted its holdings 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 buying an additional 556,406 shares in the last quarter. Finally, Flossbach Von Storch SE lifted its position in shares of lululemon athletica by 17.0% in the 2nd quarter. Flossbach Von Storch SE now owns 1,640,217 shares of the apparel retailer's stock valued at $389,683,000 after acquiring an additional 238,332 shares in the last quarter. Institutional investors and hedge funds own 85.20% of the company's stock.

lululemon athletica Trading Down 2.5%

The company has a market cap of $22.97 billion, a PE ratio of 12.99, a P/E/G ratio of 1.66 and a beta of 1.16. The business's 50-day simple moving average is $241.47 and its 200-day simple moving average is $296.17.

lululemon athletica (NASDAQ:LULU - Get Free Report) last posted its earnings results on Thursday, June 5th. The apparel retailer reported $2.60 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $2.60. The business had revenue of $2.37 billion for the quarter, compared to analyst estimates of $2.36 billion. lululemon athletica had a net margin of 16.82% and a return on equity of 43.48%. lululemon athletica's revenue was up 7.3% compared to the same quarter last year. During the same period last year, the business posted $2.54 EPS. On average, research analysts predict that lululemon athletica inc. will post 14.36 earnings per share 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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