lululemon athletica inc. (NASDAQ:LULU) Cut to “Hold” at Zacks Investment Research
Zacks Investment Research lowered shares of lululemon athletica inc. (NASDAQ:LULU) from a buy rating to a hold rating in a report released on Thursday.
According to Zacks, “Lululemon stock has made notable recovery, outperforming the broader industry in the last three months, after delivering top and bottom line beat in first-quarter fiscal 2017. Further, the company is all set to utilize its capabilities built in fiscal 2015 over the next five years. In fact, by 2020, the company aims to double its revenues to about $4 billion and more than double its earnings. Moreover, the company’s eCommerce growth initiatives and ivivva remodeling bode well. We note that the company’s eCommerce comps improved in the low-double digits range so far in the fiscal second-quarter. This led the company to provide solid comps guidance for the second quarter and fiscal 2017, reflecting further strengthening of eCommerce business. However, in-store comps continue to suffer. The company also tweaked revenue forecast for fiscal 2017, which indicates further weakness.”
LULU has been the topic of a number of other research reports. Macquarie reaffirmed an underperform rating on shares of lululemon athletica inc. in a research note on Wednesday, March 29th. Telsey Advisory Group reduced their price objective on lululemon athletica inc. from $92.00 to $78.00 and set an outperform rating on the stock in a research note on Thursday, March 30th. Citigroup Inc. downgraded lululemon athletica inc. from a buy rating to a neutral rating in a research note on Thursday, March 30th. Wells Fargo & Company downgraded lululemon athletica inc. from an outperform rating to a market perform rating and reduced their price objective for the stock from $79.00 to $49.50 in a research note on Thursday, March 30th. Finally, Bank of America Corporation downgraded lululemon athletica inc. from a neutral rating to an underperform rating in a research note on Thursday, March 30th. Four investment analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and twenty have given a buy rating to the company’s stock. lululemon athletica inc. has a consensus rating of Hold and a consensus target price of $64.80.
lululemon athletica inc. (NASDAQ LULU) traded down 0.81% on Thursday, hitting $61.33. 863,736 shares of the company traded hands. The firm has a market capitalization of $8.38 billion, a PE ratio of 29.05 and a beta of 0.23. lululemon athletica inc. has a 1-year low of $47.26 and a 1-year high of $81.81. The firm’s 50 day moving average price is $57.53 and its 200 day moving average price is $58.73.
lululemon athletica inc. (NASDAQ:LULU) last posted its quarterly earnings results on Thursday, June 1st. The apparel retailer reported $0.32 EPS for the quarter, topping the Zacks’ consensus estimate of $0.28 by $0.04. lululemon athletica inc. had a return on equity of 23.43% and a net margin of 12.21%. The company had revenue of $520.30 million for the quarter, compared to analysts’ expectations of $513.99 million. During the same period in the previous year, the firm earned $0.33 EPS. The firm’s revenue was up 5.0% compared to the same quarter last year. Equities research analysts predict that lululemon athletica inc. will post $2.34 EPS for the current fiscal year.
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In other lululemon athletica inc. news, Director Glenn Murphy purchased 97,728 shares of the firm’s stock in a transaction on Monday, June 26th. The stock was bought at an average cost of $55.50 per share, for a total transaction of $5,423,904.00. Following the completion of the purchase, the director now owns 100,344 shares in the company, valued at approximately $5,569,092. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.29% of the company’s stock.
Large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in lululemon athletica inc. by 3.7% in the first quarter. Vanguard Group Inc. now owns 7,617,031 shares of the apparel retailer’s stock worth $395,095,000 after buying an additional 269,847 shares during the period. BlackRock Inc. boosted its stake in lululemon athletica inc. by 4,791.0% in the first quarter. BlackRock Inc. now owns 5,145,308 shares of the apparel retailer’s stock worth $266,888,000 after buying an additional 5,040,109 shares during the period. State Street Corp boosted its stake in lululemon athletica inc. by 3.2% in the first quarter. State Street Corp now owns 2,096,308 shares of the apparel retailer’s stock worth $108,737,000 after buying an additional 65,889 shares during the period. HS Management Partners LLC boosted its stake in lululemon athletica inc. by 17.9% in the first quarter. HS Management Partners LLC now owns 2,034,286 shares of the apparel retailer’s stock worth $105,518,000 after buying an additional 309,212 shares during the period. Finally, Janus Capital Management LLC boosted its stake in lululemon athletica inc. by 163.9% in the first quarter. Janus Capital Management LLC now owns 1,768,004 shares of the apparel retailer’s stock worth $91,706,000 after buying an additional 1,098,057 shares during the period. Institutional investors own 79.67% 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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