lululemon athletica inc. (LULU) Stock Rating Lowered by Zacks Investment Research
lululemon athletica inc. (NASDAQ:LULU) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
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.”
A number of other research firms also recently issued reports on LULU. KeyCorp reissued a “hold” rating on shares of lululemon athletica inc. in a report on Friday, August 25th. Jefferies Group LLC reissued a “hold” rating and issued a $56.00 price objective on shares of lululemon athletica inc. in a report on Friday, July 14th. Deutsche Bank AG reissued a “hold” rating and issued a $59.00 price objective (up previously from $58.00) on shares of lululemon athletica inc. in a report on Saturday, June 3rd. J P Morgan Chase & Co reissued a “buy” rating and issued a $71.00 price objective on shares of lululemon athletica inc. in a report on Friday, September 1st. Finally, Goldman Sachs Group, Inc. (The) reissued a “neutral” rating and issued a $58.00 price objective (up previously from $56.00) on shares of lululemon athletica inc. in a report on Friday, June 2nd. Three research analysts have rated the stock with a sell rating, eighteen have assigned a hold rating, nineteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has an average rating of “Hold” and an average price target of $65.71.
lululemon athletica inc. (NASDAQ:LULU) last posted its quarterly earnings data on Thursday, August 31st. The apparel retailer reported $0.39 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.35 by $0.04. The firm had revenue of $581.10 million during the quarter, compared to the consensus estimate of $567.40 million. lululemon athletica inc. had a net margin of 11.68% and a return on equity of 22.51%. The business’s revenue for the quarter was up 12.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.38 EPS.
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In related news, Director Glenn Murphy bought 100,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 27th. The shares were acquired at an average cost of $55.50 per share, with a total value of $5,550,000.00. Following the completion of the purchase, the director now directly owns 100,344 shares in the company, valued at $5,569,092. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.29% of the stock is owned by corporate insiders.
Institutional investors have recently added to or reduced their stakes in the business. IHT Wealth Management LLC lifted its stake in shares of lululemon athletica inc. by 591.0% in the second quarter. IHT Wealth Management LLC now owns 1,382 shares of the apparel retailer’s stock valued at $105,000 after buying an additional 1,182 shares in the last quarter. Exane Derivatives bought a new position in shares of lululemon athletica inc. in the second quarter valued at $106,000. Global X Management Co. LLC lifted its stake in shares of lululemon athletica inc. by 39.7% in the second quarter. Global X Management Co. LLC now owns 2,532 shares of the apparel retailer’s stock valued at $151,000 after buying an additional 719 shares in the last quarter. OLD Mutual Customised Solutions Proprietary Ltd. lifted its stake in shares of lululemon athletica inc. by 40.0% in the first quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 3,500 shares of the apparel retailer’s stock valued at $182,000 after buying an additional 1,000 shares in the last quarter. Finally, Suntrust Banks Inc. bought a new position in shares of lululemon athletica inc. in the first quarter valued at $206,000. 80.43% of the stock is currently owned by hedge funds and other institutional investors.
lululemon athletica inc. Company Profile
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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