Lululemon Athletica inc. (LULU) Stock: A Look at the Analyst Recommendations

Lululemon Athletica inc. (NASDAQ: LULU) has a higher price-to-earnings ratio of 30.94x compared to its average ratio. LULU has 36-month beta value of 1.30. Analysts have mixed views on the stock, with 11 analysts rating it as a “buy,” 7 as “overweight,” 15 as “hold,” and 1 as “sell.”

The public float for LULU is 109.89M, and currently, short sellers hold a 3.15% ratio of that float. The average trading volume of LULU on April 02, 2024 was 1.67M shares.

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LULU) stock’s latest price update

The stock of Lululemon Athletica inc. (NASDAQ: LULU) has decreased by -1.92 when compared to last closing price of 385.20. Despite this, the company has experienced a -2.86% fall in its stock price over the last five trading sessions. InvestorPlace reported 2024-04-01 that Earnings season can bring out the best and worst in investors. The penchant for overreacting to both earnings and forward guidance is the reason it’s often called the “silly season” on Wall Street.

LULU’s Market Performance

Lululemon Athletica inc. (LULU) has seen a -2.86% fall in stock performance for the week, with a -17.60% decline in the past month and a -26.11% plunge in the past quarter. The volatility ratio for the week is 2.57%, and the volatility levels for the past 30 days are at 2.40% for LULU. The simple moving average for the past 20 days is -14.19% for LULU’s stock, with a -10.48% simple moving average for the past 200 days.

Analysts’ Opinion of LULU

Many brokerage firms have already submitted their reports for LULU stocks, with Needham repeating the rating for LULU by listing it as a “Buy.” The predicted price for LULU in the upcoming period, according to Needham is $500 based on the research report published on March 22, 2024 of the current year 2024.

Exane BNP Paribas, on the other hand, stated in their research note that they expect to see LULU reach a price target of $415, previously predicting the price at $430. The rating they have provided for LULU stocks is “Underperform” according to the report published on February 09th, 2024.

HSBC Securities gave a rating of “Hold” to LULU, setting the target price at $500 in the report published on January 22nd of the current year.

LULU Trading at -16.97% from the 50-Day Moving Average

After a stumble in the market that brought LULU to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -26.84% of loss for the given period.

Volatility was left at 2.40%, however, over the last 30 days, the volatility rate increased by 2.57%, as shares sank -16.31% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -22.05% lower at present.

During the last 5 trading sessions, LULU fell by -2.99%, which changed the moving average for the period of 200-days by +0.02% in comparison to the 20-day moving average, which settled at $436.57. In addition, Lululemon Athletica inc. saw -26.11% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at LULU starting from MORFITT MARTHA A M, who purchase 3,000 shares at the price of $389.00 back on Mar 27 ’24. After this action, MORFITT MARTHA A M now owns 89,445 shares of Lululemon Athletica inc., valued at $1,167,000 using the latest closing price.

MORFITT MARTHA A M, the Director of Lululemon Athletica inc., purchase 700 shares at $389.29 during a trade that took place back on Mar 26 ’24, which means that MORFITT MARTHA A M is holding 500 shares at $272,501 based on the most recent closing price.

Stock Fundamentals for LULU

Current profitability levels for the company are sitting at:

  • 0.22 for the present operating margin
  • 0.58 for the gross margin

The net margin for Lululemon Athletica inc. stands at 0.16. The total capital return value is set at 0.4. Equity return is now at value 42.01, with 24.41 for asset returns.

Based on Lululemon Athletica inc. (LULU), the company’s capital structure generated 0.25 points at debt to capital in total, while cash flow to debt ratio is standing at 1.64.

Currently, EBITDA for the company is 2.59 billion with net debt to EBITDA at -0.33. When we switch over and look at the enterprise to sales, we see a ratio of 4.67. The receivables turnover for the company is 77.1for trailing twelve months and the total asset turnover is 1.36. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.49.

Conclusion

To put it simply, Lululemon Athletica inc. (LULU) has had a bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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