lululemon athletica (NASDAQ:LULU) Stock Rating Lowered by Baird R W

Key Points

• lululemon athletica has been downgraded by Baird R W from a "strong-buy" to a "hold" rating, reflecting a shift in analyst sentiment toward the stock.
• Other analysts have also lowered their price targets for lululemon athletica, with BMO Capital Markets reducing it from $302 to $250 and Wells Fargo from $205 to $160.
• Despite a revenue increase of 6.5% year-over-year, the company's latest earnings report showed a decline in EPS, raising concerns among investors about future performance.

lululemon athletica (NASDAQ:LULU - Get Free Report) was downgraded by analysts at Baird R W from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the stock. BMO Capital Markets decreased their price objective on shares of lululemon athletica from $302.00 to $250.00 and set a "market perform" rating for the company in a research report on Friday, June 6th. Piper Sandler reduced their price target on shares of lululemon athletica from $200.00 to $165.00 and set a "neutral" rating for the company in a research report on Friday, September 5th. William Blair cut shares of lululemon athletica from an "outperform" rating to a "market perform" rating in a research report on Friday, September 5th. Wells Fargo & Company reduced their price target on shares of lululemon athletica from $205.00 to $160.00 and set an "equal weight" rating for the company in a research report on Friday, September 5th. Finally, Oppenheimer restated a "market perform" rating and issued a $500.00 price objective on shares of lululemon athletica in a research note on Friday, September 5th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twenty-five have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, lululemon athletica currently has an average rating of "Hold" and a consensus target price of $234.64.

lululemon athletica Stock Performance

Shares of lululemon athletica stock opened at $173.33 on Tuesday. lululemon athletica has a one year low of $159.25 and a one year high of $423.32. The company has a market cap of $20.55 billion, a PE ratio of 11.78, a P/E/G ratio of 10.83 and a beta of 1.12. The business has a 50-day simple moving average of $195.29 and a 200-day simple moving average of $249.46.

lululemon athletica (NASDAQ:LULU - Get Free Report) last released 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 business had revenue of $2.53 billion during the quarter, compared to analysts' expectations of $2.55 billion. lululemon athletica had a net margin of 16.38% and a return on equity of 42.05%. The company's revenue for the quarter was up 6.5% on a year-over-year basis. During the same period in the previous year, the company earned $3.15 EPS. lululemon athletica has set its FY 2025 guidance at 12.770-12.970 EPS. Q3 2025 guidance at 2.180-2.230 EPS. On average, sell-side analysts predict that lululemon athletica will post 14.36 earnings per share for the current fiscal year.

Insider Buying and Selling at lululemon athletica

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

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LULU. Caldwell Trust Co purchased a new stake in lululemon athletica in the 2nd quarter worth approximately $850,000. Migdal Insurance & Financial Holdings Ltd. grew its stake in lululemon athletica by 464.0% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 141 shares of the apparel retailer's stock worth $34,000 after acquiring an additional 116 shares during the period. Osaic Holdings Inc. grew its stake in lululemon athletica by 28.8% in the 2nd quarter. Osaic Holdings Inc. now owns 39,299 shares of the apparel retailer's stock worth $9,678,000 after acquiring an additional 8,797 shares during the period. American Trust grew its stake in lululemon athletica by 16.2% in the 2nd quarter. American Trust now owns 3,474 shares of the apparel retailer's stock worth $825,000 after acquiring an additional 484 shares during the period. Finally, Centaurus Financial Inc. grew its stake in lululemon athletica by 10.1% in the 2nd quarter. Centaurus Financial Inc. now owns 1,405 shares of the apparel retailer's stock worth $334,000 after acquiring an additional 129 shares during the period. 85.20% of the stock is owned by hedge funds and other institutional investors.

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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