lululemon athletica (NASDAQ:LULU) Shares Down 1.4% on Analyst Downgrade

Key Points

• Lululemon athletica's shares fell 1.4% following a downgrade by KeyCorp from an "overweight" to a "sector weight" rating, with trading volume down 5% from the average.
• Several other analysts have also lowered their price targets on LULU, with JPMorgan reducing it significantly from $224.00 to $191.00 and Needham & Company decreasing it from $238.00 to $192.00.
• Despite the recent downgrades, analyst consensus gives lululemon a rating of "Hold" with an average price target of $245.79, indicating potential upside from current levels.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report) shares dropped 1.4% on Tuesday after KeyCorp downgraded the stock from an overweight rating to a sector weight rating. The company traded as low as $165.52 and last traded at $165.69. Approximately 2,880,815 shares traded hands during trading, a decline of 5% from the average daily volume of 3,044,448 shares. The stock had previously closed at $168.10.

Several other analysts also recently weighed in on LULU. JPMorgan Chase & Co. cut their price objective on shares of lululemon athletica from $224.00 to $191.00 and set a "neutral" rating on the stock in a research report on Friday. Bank of America restated a "neutral" rating and set a $210.00 price target (down previously from $300.00) on shares of lululemon athletica in a report on Friday. Morgan Stanley cut their price target on shares of lululemon athletica from $280.00 to $223.00 and set an "equal weight" rating on the stock in a report on Tuesday, August 26th. Telsey Advisory Group reiterated a "market perform" rating and issued a $200.00 price objective (down previously from $360.00) on shares of lululemon athletica in a research note on Friday. Finally, Needham & Company LLC decreased their target price on shares of lululemon athletica from $238.00 to $192.00 and set a "buy" rating for the company in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twenty-one have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, lululemon athletica has an average rating of "Hold" and an average price target of $245.79.

Insider Transactions at lululemon athletica

In other lululemon athletica news, CEO Calvin Mcdonald sold 27,049 shares of the firm's stock in a transaction on 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 sale, the chief executive officer directly owned 110,564 shares in the company, valued at $26,058,829.16. This trade represents a 19.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.54% of the stock is owned by corporate insiders.

Institutional Trading of lululemon athletica

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Twin Capital Management Inc. increased its stake in lululemon athletica by 58.3% in the first quarter. Twin Capital Management Inc. now owns 3,676 shares of the apparel retailer's stock valued at $1,041,000 after acquiring an additional 1,354 shares during the period. Sandler Capital Management bought a new position in lululemon athletica during the 1st quarter valued at about $484,000. Narwhal Capital Management lifted its holdings in lululemon athletica by 262.7% during the 1st quarter. Narwhal Capital Management now owns 18,777 shares of the apparel retailer's stock valued at $5,315,000 after purchasing an additional 13,600 shares during the last quarter. Sawgrass Asset Management LLC bought a new position in lululemon athletica during the 1st quarter valued at about $9,209,000. Finally, WealthPlan Investment Management LLC lifted its holdings in lululemon athletica by 26.9% during the 1st quarter. WealthPlan Investment Management LLC now owns 7,647 shares of the apparel retailer's stock valued at $2,165,000 after purchasing an additional 1,622 shares during the last quarter. 85.20% of the stock is currently owned by institutional investors and hedge funds.

lululemon athletica Trading Down 1.6%

The stock has a market capitalization of $19.82 billion, a P/E ratio of 11.22, a P/E/G ratio of 1.60 and a beta of 1.12. The firm's fifty day moving average is $211.25 and its 200-day moving average is $263.34.

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

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