lululemon athletica (NASDAQ:LULU) Shares Gap Down After Analyst Downgrade

Key Points

• lululemon shares gapped down after Wells Fargo cut its price target to $110 from $150 while keeping an equal weight rating. The stock opened at $110.43 after closing at $124.92 and was last trading around $114.98.
• Several other analysts also turned more cautious, with multiple firms lowering targets and one downgrading the stock to underperform. MarketBeat says the overall consensus remains Hold, with an average target price of $179.55.
• Despite the selloff, lululemon recently reported quarterly results that beat EPS and revenue estimates, but the company also set softer FY2026 and Q2 guidance. The weaker outlook has amplified concerns about slowing demand, competition, and brand momentum.

Shares of lululemon athletica inc. (NASDAQ:LULU - Get Free Report) gapped down prior to trading on Friday after Wells Fargo & Company lowered their price target on the stock from $150.00 to $110.00. The stock had previously closed at $124.92, but opened at $110.43. Wells Fargo & Company currently has an equal weight rating on the stock. lululemon athletica shares last traded at $114.9830, with a volume of 5,266,906 shares.

A number of other analysts have also issued reports on the company. Citigroup dropped their target price on lululemon athletica from $210.00 to $185.00 and set a "neutral" rating on the stock in a research report on Monday, March 23rd. Robert W. Baird lowered their price objective on lululemon athletica from $170.00 to $140.00 and set a "neutral" rating for the company in a research note on Friday. BNP Paribas Exane downgraded lululemon athletica from a "neutral" rating to an "underperform" rating and set a $88.00 price objective on the stock. in a report on Friday. Weiss Ratings lowered lululemon athletica from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, March 31st. Finally, Needham & Company LLC reiterated a "hold" rating on shares of lululemon athletica in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twenty-eight have given a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $179.55.

Insider Buying and Selling at lululemon athletica

In other lululemon athletica news, CEO Andre Maestrini bought 3,275 shares of the stock in a transaction on Wednesday, April 1st. The stock was purchased at an average price of $151.02 per share, for a total transaction of $494,590.50. Following the completion of the purchase, the chief executive officer directly owned 34,551 shares in the company, valued at approximately $5,217,892.02. This trade represents a 10.47% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Nicole Neuburger sold 622 shares of the stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $161.00, for a total transaction of $100,142.00. Following the sale, the insider directly owned 19,156 shares in the company, valued at $3,084,116. This trade represents a 3.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.54% of the stock is owned by insiders.

lululemon athletica News Roundup

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

• Positive Sentiment: LULU beat Q1 EPS and revenue estimates, showing the business is still growing, and China remains a potential growth area. lululemon athletica inc. Announces First Quarter Fiscal 2026 Results
• Positive Sentiment: Some analysts still see upside from current levels, with several targets reduced but still above the stock price, suggesting valuation may now be more attractive after the selloff. lululemon athletica stock page
• Neutral Sentiment: Bank of America and Robert W. Baird both lowered price targets but kept neutral ratings, reinforcing a wait-and-see view rather than a strong bearish call.
• Neutral Sentiment: Needham reaffirmed a hold rating, indicating analysts are increasingly cautious but not uniformly negative.
• Negative Sentiment: lululemon reduced FY2026 revenue and earnings guidance, with full-year sales now expected to be flat to down, far below prior expectations. Lululemon Cuts Outlook as Headwinds Mount
• Negative Sentiment: Q2 guidance also missed consensus, signaling near-term earnings pressure and making the turnaround look longer and more difficult.
• Negative Sentiment: Analysts at BTIG, BNP Paribas Exane, Telsey, and others downgraded the stock or cut targets sharply, reflecting growing concern about weaker U.S. demand, competition, and brand momentum.
• Negative Sentiment: Reuters and other reports highlighted slowing traffic, waning brand appeal, and tariff costs as added headwinds, which is weighing on sentiment ahead of the new CEO’s arrival. Lululemon slides as bleak forecasts deepen turnaround worries

Hedge Funds Weigh In On lululemon athletica

Hedge funds and other institutional investors have recently bought and sold shares of the stock. NewEdge Advisors LLC grew its holdings in shares of lululemon athletica by 41.8% during the first quarter. NewEdge Advisors LLC now owns 14,922 shares of the apparel retailer's stock valued at $2,285,000 after purchasing an additional 4,400 shares during the last quarter. Caerus Investment Advisors LLC acquired a new position in lululemon athletica during the 1st quarter valued at approximately $294,000. Financial Solutions Advisory Group Inc. bought a new position in lululemon athletica during the 1st quarter worth $338,000. Asset Dedication LLC increased its position in lululemon athletica by 15.1% in the first quarter. Asset Dedication LLC now owns 3,794 shares of the apparel retailer's stock worth $581,000 after buying an additional 499 shares during the period. Finally, Groupama Asset Managment increased its position in lululemon athletica by 47.0% in the first quarter. Groupama Asset Managment now owns 1,751 shares of the apparel retailer's stock worth $268,000 after buying an additional 560 shares during the period. 85.20% of the stock is currently owned by institutional investors and hedge funds.

lululemon athletica Stock Down 8.1%

The company has a market capitalization of $13.86 billion, a P/E ratio of 8.64, a PEG ratio of 3.89 and a beta of 0.87. The business has a 50 day simple moving average of $142.08 and a 200-day simple moving average of $170.35.

lululemon athletica (NASDAQ:LULU - Get Free Report) last released its quarterly earnings results on Thursday, June 4th. The apparel retailer reported $1.69 EPS for the quarter, topping the consensus estimate of $1.67 by $0.02. lululemon athletica had a net margin of 14.22% and a return on equity of 34.82%. The business had revenue of $2.47 billion during the quarter, compared to analyst estimates of $2.43 billion. During the same quarter in the prior year, the firm earned $2.60 earnings per share. The company's quarterly revenue was up 4.3% on a year-over-year basis. lululemon athletica has set its FY 2026 guidance at 10.950-11.150 EPS and its Q2 2026 guidance at 1.760-1.810 EPS. Equities analysts forecast that lululemon athletica inc. will post 12.26 EPS for the current fiscal year.

lululemon athletica Company Profile

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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