lululemon athletica (NASDAQ:LULU) Trading 4.4% Higher - Here's Why

Key Points

• Lululemon shares rose 4.4% to about $120.07 in Friday trading, although volume was 25% below the stock’s average daily volume.
• Recent analyst sentiment remains cautious: multiple firms cut price targets or downgraded the stock, contributing to a consensus “Reduce” rating and an average target price of $148.38.
• The company modestly beat quarterly expectations with adjusted EPS of $1.69 and revenue of $2.47 billion, up 4.3% year over year. Director Charles V. Bergh also purchased roughly $500,000 of shares, while institutional investors own 85.2% of the stock.

lululemon athletica inc. (NASDAQ:LULU - Get Free Report)'s share price traded up 4.4% on Friday . The company traded as high as $120.28 and last traded at $120.07. 2,288,402 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 3,053,664 shares. The stock had previously closed at $115.00.

Analyst Upgrades and Downgrades

LULU has been the subject of several research reports. Stifel Nicolaus cut their price objective on lululemon athletica from $176.00 to $134.00 and set a "hold" rating for the company in a research note on Friday, June 5th. BNP Paribas Exane downgraded lululemon athletica from a "neutral" rating to an "underperform" rating and set a $88.00 target price on the stock. in a research report on Friday, June 5th. Needham & Company LLC reaffirmed a "hold" rating on shares of lululemon athletica in a research note on Friday, June 5th. Jefferies Financial Group dropped their price target on lululemon athletica from $145.00 to $115.00 and set a "hold" rating for the company in a research report on Friday, June 5th. Finally, Sanford C. Bernstein reduced their price objective on lululemon athletica from $170.00 to $145.00 and set a "market perform" rating for the company in a research note on Wednesday, June 3rd. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twenty-five have assigned a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $148.38.

lululemon athletica Trading Up 4.0%

The company has a fifty day moving average price of $117.76 and a two-hundred day moving average price of $138.56. The firm has a market capitalization of $14.19 billion, a price-to-earnings ratio of 9.65, a PEG ratio of 3.82 and a beta of 0.86.

lululemon athletica (NASDAQ:LULU - Get Free Report) last posted its quarterly earnings results on Thursday, June 4th. The apparel retailer reported $1.69 EPS for the quarter, beating the consensus estimate of $1.67 by $0.02. The firm had revenue of $2.47 billion during the quarter, compared to analysts' expectations of $2.44 billion. lululemon athletica had a return on equity of 31.26% and a net margin of 13.03%.The business's revenue for the quarter was up 4.3% on a year-over-year basis. During the same quarter last year, the firm earned $2.60 earnings per share. 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. As a group, equities research analysts expect that lululemon athletica inc. will post 10.93 earnings per share for the current year.

Insider Activity at lululemon athletica

In other news, Director Charles V. 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

Several hedge funds and other institutional investors have recently bought and sold shares of LULU. California State Teachers Retirement System boosted its holdings in lululemon athletica by 10,065.8% in the 2nd quarter. California State Teachers Retirement System now owns 17,180,893 shares of the apparel retailer's stock valued at $1,961,714,000 after purchasing an additional 17,011,886 shares during the last quarter. BlackRock Inc. purchased a new stake in shares of lululemon athletica during the 2nd quarter valued at approximately $1,010,565,000. Geode Capital Management LLC raised its position in shares of lululemon athletica by 2.4% during the 4th quarter. Geode Capital Management LLC now owns 3,049,911 shares of the apparel retailer's stock valued at $631,526,000 after buying an additional 71,464 shares during the period. Invesco Ltd. lifted its holdings in lululemon athletica by 28.7% in the third quarter. Invesco Ltd. now owns 2,200,552 shares of the apparel retailer's stock valued at $391,544,000 after acquiring an additional 490,127 shares during the last quarter. Finally, Morgan Stanley lifted its holdings in lululemon athletica by 2.8% in the fourth quarter. Morgan Stanley now owns 2,197,158 shares of the apparel retailer's stock valued at $456,592,000 after acquiring an additional 59,282 shares during the last quarter. 85.20% of the stock is currently owned by institutional investors and hedge funds.

About lululemon athletica

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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