lululemon athletica Target of Unusually Large Options Trading (NASDAQ:LULU)

Key Points

• Lululemon saw unusually heavy bearish options activity, with traders purchasing 78,806 put options—about 113% above typical daily put volume.
• The stock fell to $96.87 amid elevated trading volume, near its 52-week low of $95.67. Recent earnings beat EPS estimates, but revenue declined 4.3% year over year and guidance remains under scrutiny.
• Analyst sentiment is cautious: multiple firms cut price targets, resulting in a consensus “Reduce” rating and average target of $114.08, while the company’s new CEO begins a strategic reset.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report) was the target of unusually large options trading on Thursday. Traders bought 78,806 put options on the stock. This represents an increase of approximately 113% compared to the typical daily volume of 36,929 put options.

Trending Headlines about lululemon athletica

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

• Positive Sentiment: The company’s new CEO, Heidi O’Neill, is beginning a strategic reset that could help address brand, product and regional execution issues over time. LULU’s valuation has also become considerably less demanding after the prolonged selloff. Lululemon's New CEO Inherits a 52% Stock Collapse
• Positive Sentiment: Citigroup maintained a neutral rating but reduced its price target to $117, which remains above the referenced trading level and suggests some potential recovery if operating trends stabilize.

lululemon athletica Stock Performance

Shares of lululemon athletica stock traded down $2.85 on Thursday, reaching $96.87. The company had a trading volume of 6,241,872 shares, compared to its average volume of 3,514,091. The firm's 50 day moving average price is $117.59 and its two-hundred day moving average price is $134.39. The firm has a market cap of $11.50 billion, a PE ratio of 7.92, a PEG ratio of 2.69 and a beta of 0.87. lululemon athletica has a 52-week low of $95.67 and a 52-week high of $225.98.

lululemon athletica (NASDAQ:LULU - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The apparel retailer reported $2.92 earnings per share for the quarter, topping analysts' consensus estimates of $1.79 by $1.13. lululemon athletica had a net margin of 12.78% and a return on equity of 27.69%. The firm had revenue of $2.42 billion during the quarter, compared to analysts' expectations of $2.46 billion. During the same quarter last year, the company posted $3.10 EPS. The firm's quarterly revenue was down 4.3% on a year-over-year basis. lululemon athletica has set its FY 2026 guidance at 9.480-9.730 EPS and its Q3 2026 guidance at 0.930-0.980 EPS. As a group, sell-side analysts predict that lululemon athletica will post 8.72 EPS for the current year.

Analysts Set New Price Targets

Several research firms recently issued reports on LULU. Morgan Stanley cut their price objective on shares of lululemon athletica from $93.00 to $83.00 and set an "underweight" rating for the company in a research report on Friday, September 4th. Needham & Company LLC reiterated a "hold" rating on shares of lululemon athletica in a report on Friday, September 4th. Piper Sandler dropped their price target on shares of lululemon athletica from $110.00 to $80.00 and set a "neutral" rating for the company in a research note on Friday, September 4th. Truist Financial restated a "sell" rating and set a $82.00 price target (down from $94.00) on shares of lululemon athletica in a report on Friday, September 4th. Finally, Wells Fargo & Company reduced their price target on shares of lululemon athletica from $105.00 to $95.00 and set an "equal weight" rating on the stock in a research report on Friday, September 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Hold rating and six have issued a Sell rating to the stock. According to data from MarketBeat, lululemon athletica has an average rating of "Reduce" and a consensus target price of $114.08.

Insider Activity at lululemon athletica

In other news, Director Charles Bergh purchased 4,275 shares of the stock in a transaction dated Monday, June 15th. The shares were purchased at an average price of $117.05 per share, with a total value of $500,388.75. Following the transaction, the director owned 10,365 shares in the company, valued at $1,213,223.25. The trade was a 70.20% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.54% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On lululemon athletica

A number of institutional investors have recently modified their holdings of LULU. Brighton Jones LLC purchased a new position in lululemon athletica during the 4th quarter valued at about $429,000. NewEdge Advisors LLC increased its stake in lululemon athletica by 5.1% during the first quarter. NewEdge Advisors LLC now owns 3,848 shares of the apparel retailer's stock worth $1,089,000 after purchasing an additional 186 shares during the period. Glenview Trust co lifted its position in shares of lululemon athletica by 39.9% during the second quarter. Glenview Trust co now owns 996 shares of the apparel retailer's stock worth $237,000 after purchasing an additional 284 shares in the last quarter. Diversify Advisory Services LLC acquired a new stake in shares of lululemon athletica during the second quarter worth about $508,000. Finally, Raymond James Financial Inc. boosted its stake in shares of lululemon athletica by 10.7% in the second quarter. Raymond James Financial Inc. now owns 112,632 shares of the apparel retailer's stock valued at $26,759,000 after purchasing an additional 10,891 shares during the period. 85.20% of the stock is owned by institutional investors and hedge funds.

About lululemon athletica

lululemon athletica inc. is a designer, distributor and retailer of athletic apparel, footwear and accessories. The company's products are developed for activities including yoga, running, training, tennis and other forms of exercise, as well as everyday use. Its offerings include leggings, tops, shorts, outerwear, footwear, bags and fitness accessories for women and men.

Founded in 1998 in Vancouver, British Columbia, lululemon began as a yoga-focused apparel company and has expanded into a broader performance and lifestyle brand.

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