Lululemon Athletica Receives New Price Target from TD Cowen

Lululemon Athletica (NASDAQ:LULU) has recently seen an increase in its price target, as TD Cowen raised their estimate from $382.00 to $383.00. This adjustment reflects the analysts' outlook for the company while suggesting a potential downside of 4.15% based on Lululemon's current share price.

Other market analysts have also weighed in on Lululemon's stock. For instance, Guggenheim lowered their price target significantly from $525.00 to $350.00, maintaining a "buy" rating. Bank of America followed suit by reducing their price target from $440.00 to $355.00 but still rated the stock as a "buy." Additionally, Barclays adjusted their price objective slightly downwards from $263.00 to $261.00 with an "equal weight" rating. KeyCorp also revised its price target to $350.00 from the previous $415.00 while retaining an "overweight" rating. In another update, Morgan Stanley raised their price target from $314.00 to $345.00 while assigning an "overweight" rating.

Overall, the consensus among analysts indicates that the stock has received diverse ratings, with two analysts suggesting a sell rating, ten recommending a hold, and nineteen advocating for a buy rating. According to MarketBeat, Lululemon currently holds an average rating of “Moderate Buy” with a consensus target price of $379.52.

Lululemon’s Recent Performance

On the trading day preceding this report, LULU stock opened at $399.60. Notably, the company's 50-day simple moving average stands at $303.40, while the 200-day simple moving average is $287.81. Over the past year, Lululemon has experienced a low of $226.01 and a high of $516.39. With a market capitalization of $49.06 billion, the company has a price-to-earnings (PE) ratio of 30.88 and a beta of 1.23, indicating that its stock has experienced fluctuations in value.

In its latest earnings report on December 5th, Lululemon achieved earnings per share (EPS) of $2.87, exceeding analysts’ expectations of $2.69 by $0.18. The company's revenue for the quarter reached $2.40 billion, surpassing predictions of $2.36 billion. Lululemon’s net margin stood at 16.34%, coupled with a return on equity of 42.59%. Compared to the same quarter last year, their revenue increased by 9.1%, with the EPS recorded at $2.53 for that period. Analysts project that Lululemon Athletica will achieve an EPS of 13.94 for the current fiscal year.

Insider Trading and Institutional Activity

Recently, insider trading activity has also been observed. For example, insider Nicole Neuburger sold 486 shares of Lululemon's stock on September 26th, 2024, at an average price of $269.59, totaling approximately $131,020.74. Following this sale, Neuburger retains 6,198 shares valued at around $1,670,918.82, marking a 7.27% decrease in her holdings. Presently, corporate insiders hold about 0.48% of the company's stocks.

Institutional investors have also been active in adjusting their holdings in Lululemon. Notably, Value Star Asset Management Hong Kong Ltd significantly increased its position in Lululemon, raising their ownership by 19,890.3% over the second quarter, holding 4,653,746 shares worth approximately $1.39 billion. Similarly, International Assets Investment Management LLC grew their stake by 74,856.2% in the third quarter, now owning 895,726 shares valued at $243.05 million. Other firms, including Maverick Capital Ltd and The Manufacturers Life Insurance Company, have also made notable investments, contributing to a larger ownership of approximately 85.20% by institutional investors overall.

Company Overview

Lululemon Athletica Inc, through its subsidiaries, designs, distributes, and retails a wide range of athletic apparel, footwear, and accessories under the Lululemon brand. The company focuses on products for both men and women, with offerings ranging from pants and shorts to tops and jackets, suitable for various physical activities such as yoga, running, and training.

Lululemon, Stock, Target