Zacks Investment Research Lowers lululemon athletica inc. (LULU) to Hold
Zacks Investment Research cut shares of lululemon athletica inc. (NASDAQ:LULU) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.
According to Zacks, “Lululemon has surpassed the industry in the past three months, mainly driven by its focus on strategy for 2020, as part of which it aims to generate revenues of $4 billion. To achieve this, the company is committed toward product innovation, building store fleet in North America, expanding digital business and global expansion. All these factors helped Lululemon to post robust numbers in second-quarter fiscal 2017, even amid a tough retail landscape. Both sales and earnings topped estimates and grew year over year. While the bottom line marked its 2nd consecutive beat, the top line recorded its 7th straight quarter of positive surprise. Also, sturdy e-Commerce growth fueled comps. Apart from this, the company is on track with ivivva’s remodeling. The solid results and favorable third quarter trends encouraged management to raise its fiscal 2017 view. However, stiff competition and volatile consumer spending patterns may pose concerns.”
LULU has been the subject of a number of other research reports. Canaccord Genuity set a $41.00 target price on lululemon athletica inc. and gave the company a sell rating in a report on Tuesday, August 29th. Vetr downgraded lululemon athletica inc. from a strong-buy rating to a buy rating and set a $58.10 target price for the company. in a report on Monday, June 19th. Cowen and Company reissued an outperform rating and issued a $68.00 target price (up previously from $67.00) on shares of lululemon athletica inc. in a report on Friday, September 1st. Credit Suisse Group reissued a hold rating and issued a $56.00 target price on shares of lululemon athletica inc. in a report on Wednesday, May 17th. Finally, Jefferies Group LLC set a $56.00 target price on lululemon athletica inc. and gave the company a hold rating in a report on Friday, June 2nd. Three analysts have rated the stock with a sell rating, eighteen have assigned a hold rating, nineteen have given a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of Hold and an average target price of $65.68.
lululemon athletica inc. (NASDAQ LULU) traded down 0.85% during trading on Wednesday, hitting $60.60. 2,418,026 shares of the stock traded hands. The stock has a market cap of $8.20 billion, a P/E ratio of 29.25 and a beta of 0.22. lululemon athletica inc. has a 12 month low of $47.26 and a 12 month high of $72.70. The firm’s 50-day moving average is $60.59 and its 200-day moving average is $57.17.
lululemon athletica inc. (NASDAQ:LULU) last released its earnings results on Thursday, August 31st. The apparel retailer reported $0.39 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.04. lululemon athletica inc. had a return on equity of 22.51% and a net margin of 11.68%. The company had revenue of $581.10 million during the quarter, compared to the consensus estimate of $567.40 million. During the same quarter last year, the company earned $0.38 earnings per share. lululemon athletica inc.’s quarterly revenue was up 12.9% compared to the same quarter last year. On average, analysts forecast that lululemon athletica inc. will post $2.41 EPS for the current year.
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In other lululemon athletica inc. news, Director Glenn Murphy acquired 100,000 shares of the company’s stock in a transaction on Tuesday, June 27th. The shares were bought at an average cost of $55.50 per share, for a total transaction of $5,550,000.00. Following the acquisition, the director now directly owns 100,344 shares of the company’s stock, valued at $5,569,092. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.29% of the stock is owned by insiders.
A number of hedge funds have recently bought and sold shares of LULU. BlackRock Inc. increased its holdings in lululemon athletica inc. by 4,791.0% during the 1st quarter. BlackRock Inc. now owns 5,145,308 shares of the apparel retailer’s stock worth $266,888,000 after purchasing an additional 5,040,109 shares during the last quarter. Janus Henderson Group PLC increased its holdings in shares of lululemon athletica inc. by 16,053.2% in the 2nd quarter. Janus Henderson Group PLC now owns 2,614,550 shares of the apparel retailer’s stock valued at $156,010,000 after acquiring an additional 2,598,364 shares during the last quarter. Eaton Vance Management bought a new stake in shares of lululemon athletica inc. in the 2nd quarter valued at approximately $126,967,000. Lazard Asset Management LLC bought a new stake in shares of lululemon athletica inc. in the 2nd quarter valued at approximately $94,181,000. Finally, Janus Capital Management LLC increased its holdings in shares of lululemon athletica inc. by 163.9% in the 1st quarter. Janus Capital Management LLC now owns 1,768,004 shares of the apparel retailer’s stock valued at $91,706,000 after acquiring an additional 1,098,057 shares during the last quarter. Institutional investors own 79.58% of the company’s stock.
About lululemon athletica inc.
lululemon athletica inc. is a designer, distributor and retailer of athletic apparel. The Company operates through two segments: Company-operated stores and Direct to consumer. It is also engaged in the sale from outlets, showrooms, sales from temporary locations, sales to wholesale accounts, warehouse sales, and license and supply arrangements.
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