lululemon athletica inc. (LULU) Cut to Hold at Zacks Investment Research
Zacks Investment Research downgraded shares of lululemon athletica inc. (NASDAQ:LULU) from a buy rating to a hold rating in a research note released on Friday morning.
According to Zacks, “Lululemon’s shares have outperformed the industry in the last three months, mainly owing to solid first-quarter fiscal 2017 results. Further, the company is all set to utilize its capabilities built in fiscal 2015 over the next five years. In fact, by 2020, it aims to double its revenues to about $4 billion and more than double its earnings. Moreover, Lululemon’s eCommerce growth initiatives and ivivva remodeling bode well. We note that the company’s eCommerce comps improved in the low-double digits range at the start of the fiscal second-quarter, which led to solid comps guidance for the quarter. While its efforts to build upon eCommerce sales are paying off, in-store comps continue to be weak due to the soft traffic trends in the retail sector. Also, management tweaked revenue forecast for fiscal 2017, which indicates further trouble down the road. Estimates have been stable ahead of the second quarter earnings release.”
LULU has been the subject of a number of other reports. 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 research report on Monday, June 19th. Cowen and Company set a $67.00 target price on lululemon athletica inc. and gave the company a buy rating in a research report on Monday, August 21st. Credit Suisse Group reiterated a hold rating and set a $56.00 target price on shares of lululemon athletica inc. in a research report on Wednesday, May 17th. Jefferies Group LLC set a $56.00 target price on lululemon athletica inc. and gave the company a hold rating in a research report on Friday, June 2nd. Finally, Bank of America Corporation reiterated an underperform rating and set a $49.00 target price (up from $46.00) on shares of lululemon athletica inc. in a research report on Monday, June 5th. Three investment analysts have rated the stock with a sell rating, nineteen have assigned a hold rating, eighteen have issued a buy rating and one has assigned a strong buy rating to the company. The company currently has a consensus rating of Hold and an average target price of $65.37.
Shares of lululemon athletica inc. (LULU) opened at 60.21 on Friday. lululemon athletica inc. has a 52 week low of $47.26 and a 52 week high of $81.24. The company has a 50 day moving average of $60.44 and a 200-day moving average of $57.77. The company has a market cap of $8.23 billion, a price-to-earnings ratio of 28.52 and a beta of 0.25.
lululemon athletica inc. (NASDAQ:LULU) last released its quarterly earnings results on Thursday, June 1st. The apparel retailer reported $0.32 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.28 by $0.04. The business had revenue of $520.30 million during the quarter, compared to the consensus estimate of $513.99 million. lululemon athletica inc. had a return on equity of 23.43% and a net margin of 12.21%. The firm’s quarterly revenue was up 5.0% on a year-over-year basis. During the same period in the previous year, the company posted $0.33 EPS. On average, equities research analysts expect that lululemon athletica inc. will post $2.34 earnings per share for the current fiscal year.
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In other news, Director Glenn Murphy purchased 97,728 shares of the business’s stock in a transaction on Monday, June 26th. The shares were acquired at an average price of $55.50 per share, for a total transaction of $5,423,904.00. Following the completion of the acquisition, the director now owns 100,344 shares in the company, valued at $5,569,092. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.29% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in the company. IHT Wealth Management LLC raised its position 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 during the last quarter. Exane Derivatives purchased a new position in shares of lululemon athletica inc. during the second quarter valued at about $106,000. Mn Services Vermogensbeheer B.V. raised its position in shares of lululemon athletica inc. by 4.3% in the first quarter. Mn Services Vermogensbeheer B.V. now owns 2,925 shares of the apparel retailer’s stock valued at $142,000 after buying an additional 121 shares during the last quarter. Global X Management Co. LLC raised its position 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 during the last quarter. Finally, OLD Mutual Customised Solutions Proprietary Ltd. raised its position 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 during the last quarter. Institutional investors and hedge funds own 79.56% 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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