Lululemon Athletica (NASDAQ:LULU) Shares Down 4.5% – Here’s Why

Lululemon Athletica Inc. (NASDAQ:LULU)’s stock price traded down 4.5% on Friday . The company traded as low as $378.59 and last traded at $373.07. 309,511 shares changed hands during mid-day trading, a decline of 79% from the average session volume of 1,505,155 shares. The stock had previously closed at $390.85.

Wall Street Analyst Weigh In

LULU has been the subject of several analyst reports. Telsey Advisory Group upped their target price on Lululemon Athletica from $430.00 to $445.00 and gave the company an “outperform” rating in a research note on Tuesday, January 14th. Needham & Company LLC upgraded shares of Lululemon Athletica from a “hold” rating to a “buy” rating and set a $475.00 price objective on the stock in a report on Friday, January 10th. TD Securities boosted their target price on shares of Lululemon Athletica from $382.00 to $383.00 and gave the company a “buy” rating in a report on Tuesday, December 3rd. Piper Sandler increased their price target on shares of Lululemon Athletica from $260.00 to $340.00 and gave the stock a “neutral” rating in a research note on Friday, December 6th. Finally, KeyCorp boosted their price objective on shares of Lululemon Athletica from $400.00 to $420.00 and gave the company an “overweight” rating in a research note on Thursday, January 30th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and twenty have issued a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $399.14.

Lululemon Athletica Stock Performance

The company’s fifty day simple moving average is $391.37 and its two-hundred day simple moving average is $320.44. The company has a market capitalization of $44.65 billion, a price-to-earnings ratio of 26.48, a price-to-earnings-growth ratio of 2.51 and a beta of 1.19.

Lululemon Athletica (NASDAQ:LULU) last posted its quarterly earnings results on Thursday, December 5th. The apparel retailer reported $2.87 EPS for the quarter, topping analysts’ consensus estimates of $2.69 by $0.18. Lululemon Athletica had a return on equity of 42.16% and a net margin of 17.05%. The business had revenue of $2.40 billion during the quarter, compared to the consensus estimate of $2.36 billion. During the same period last year, the firm earned $2.53 earnings per share. The company’s revenue for the quarter was up 9.1% compared to the same quarter last year. Sell-side analysts anticipate that Lululemon Athletica Inc. will post 14.36 EPS for the current year.

Insider Activity at Lululemon Athletica

In other news, insider Celeste Burgoyne sold 24,870 shares of the stock in a transaction that occurred on Monday, December 9th. The stock was sold at an average price of $405.54, for a total transaction of $10,085,779.80. Following the sale, the insider now directly owns 12,429 shares in the company, valued at approximately $5,040,456.66. This represents a 66.68 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Nicole Neuburger sold 2,022 shares of the business’s stock in a transaction that occurred on Thursday, December 26th. The shares were sold at an average price of $387.11, for a total value of $782,736.42. Following the transaction, the insider now owns 6,198 shares of the company’s stock, valued at $2,399,307.78. This represents a 24.60 % decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.48% of the company’s stock.

Institutional Investors Weigh In On Lululemon Athletica

A number of hedge funds have recently added to or reduced their stakes in LULU. Shepherd Financial Partners LLC acquired a new stake in shares of Lululemon Athletica in the 3rd quarter worth about $953,000. Investment Partners Asset Management Inc. acquired a new stake in shares of Lululemon Athletica in the fourth quarter valued at approximately $275,000. OVERSEA CHINESE BANKING Corp Ltd raised its holdings in shares of Lululemon Athletica by 198.8% during the third quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 6,860 shares of the apparel retailer’s stock valued at $1,844,000 after buying an additional 4,564 shares during the last quarter. Rockefeller Capital Management L.P. grew its holdings in Lululemon Athletica by 50.5% in the 3rd quarter. Rockefeller Capital Management L.P. now owns 103,424 shares of the apparel retailer’s stock worth $28,070,000 after buying an additional 34,704 shares in the last quarter. Finally, Rakuten Securities Inc. grew its holdings in Lululemon Athletica by 876.8% in the 3rd quarter. Rakuten Securities Inc. now owns 2,022 shares of the apparel retailer’s stock worth $549,000 after buying an additional 1,815 shares in the last quarter. 85.20% of the stock is currently owned by 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.