lululemon athletica (NASDAQ:LULU) Trading Down 4% - Here's Why

Key Points

• Shares of lululemon athletica fell by 4%, closing at $172.01 after previously trading as low as $171.01, with trading volume doubling the average.
• Analysts have adjusted their price targets, with Evercore ISI lowering its target from $265 to $180, while Morgan Stanley decreased it from $280 to $223, reflecting a more cautious outlook.
• The company's recent quarterly earnings report showed $3.10 EPS, exceeding estimates, but revenue slightly missed forecasts at $2.53 billion, growing only 6.5% year-over-year.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report)'s share price was down 4% during trading on Thursday . The company traded as low as $171.01 and last traded at $172.01. Approximately 6,576,466 shares were traded during mid-day trading, an increase of 100% from the average daily volume of 3,287,557 shares. The stock had previously closed at $179.22.

Analysts Set New Price Targets

A number of analysts recently issued reports on LULU shares. Evercore ISI reaffirmed an "in-line" rating and issued a $180.00 target price (down previously from $265.00) on shares of lululemon athletica in a research report on Friday, September 5th. Oppenheimer reaffirmed a "market perform" rating and issued a $500.00 target price on shares of lululemon athletica in a research report on Friday, September 5th. CICC Research reaffirmed a "market perform" rating and issued a $280.49 target price on shares of lululemon athletica in a research report on Monday, June 9th. Morgan Stanley lowered their target price on lululemon athletica from $280.00 to $223.00 and set an "equal weight" rating on the stock in a research report on Tuesday, August 26th. Finally, Robert W. Baird reaffirmed a "neutral" rating and issued a $195.00 target price (down previously from $225.00) on shares of lululemon athletica in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, twenty-six have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, lululemon athletica presently has an average rating of "Hold" and an average price target of $234.64.

lululemon athletica Stock Down 4.0%

The firm has a market capitalization of $20.40 billion, a P/E ratio of 11.69, a PEG ratio of 10.82 and a beta of 1.12. The firm has a 50 day moving average of $194.35 and a 200-day moving average of $248.97.

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

Insider Transactions at lululemon athletica

In related news, CEO Calvin Mcdonald sold 27,049 shares of the firm's stock in a transaction on Friday, June 27th. The stock was 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 Securities & Exchange Commission, which is available at this hyperlink. 0.54% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of LULU. Norges Bank acquired a new stake in lululemon athletica during the 2nd quarter worth about $217,344,000. GAMMA Investing LLC grew its holdings in lululemon athletica by 37,062.1% during the 1st quarter. GAMMA Investing LLC now owns 563,006 shares of the apparel retailer's stock worth $159,364,000 after acquiring an additional 561,491 shares during the period. T. Rowe Price Investment Management Inc. grew its holdings in lululemon athletica by 151.6% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 770,336 shares of the apparel retailer's stock worth $218,052,000 after acquiring an additional 464,186 shares during the period. Nuveen LLC acquired a new stake in lululemon athletica during the 1st quarter worth about $123,894,000. Finally, Geode Capital Management LLC grew its holdings in lululemon athletica by 16.2% during the 2nd quarter. Geode Capital Management LLC now owns 2,960,387 shares of the apparel retailer's stock worth $700,502,000 after acquiring an additional 413,062 shares during the period. 85.20% of the stock is owned by institutional investors.

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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