The stock price of Lululemon Athletica inc. (NASDAQ: LULU) has plunged by -0.46 when compared to previous closing price of 360.46, but the company has seen a -5.09% decline in its stock price over the last five trading sessions. Bloomberg Markets and Finance reported 2024-04-09 that Top calls today are Lululemon, Chargepoint and US Steel.
Is It Worth Investing in Lululemon Athletica inc. (NASDAQ: LULU) Right Now?
Lululemon Athletica inc. (NASDAQ: LULU) has a price-to-earnings ratio that is above its average at 29.38x. The stock has a 36-month beta value of 1.30. Opinions on the stock are mixed, with 11 analysts rating it as a “buy,” 7 as “overweight,” 15 as “hold,” and 1 as “sell.”
The public float for LULU is 109.86M, and at present, short sellers hold a 3.15% of that float. On April 10, 2024, the average trading volume of LULU was 1.76M shares.
LULU’s Market Performance
LULU’s stock has seen a -5.09% decrease for the week, with a -22.07% drop in the past month and a -27.00% fall in the past quarter. The volatility ratio for the week is 2.21%, and the volatility levels for the past 30 days are at 2.47% for Lululemon Athletica inc. The simple moving average for the past 20 days is -14.25% for LULU’s stock, with a -14.90% simple moving average for the past 200 days.
Analysts’ Opinion of LULU
Many brokerage firms have already submitted their reports for LULU stocks, with Jefferies repeating the rating for LULU by listing it as a “Underperform.” The predicted price for LULU in the upcoming period, according to Jefferies is $240 based on the research report published on April 04, 2024 of the current year 2024.
Needham, on the other hand, stated in their research note that they expect to see LULU reach a price target of $500, previously predicting the price at $525. The rating they have provided for LULU stocks is “Buy” according to the report published on March 22nd, 2024.
Exane BNP Paribas gave a rating of “Underperform” to LULU, setting the target price at $415 in the report published on February 09th of the current year.
LULU Trading at -19.13% 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 -30.52% of loss for the given period.
Volatility was left at 2.47%, however, over the last 30 days, the volatility rate increased by 2.21%, as shares sank -21.62% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -24.94% lower at present.
During the last 5 trading sessions, LULU fell by -5.09%, which changed the moving average for the period of 200-days by -5.07% in comparison to the 20-day moving average, which settled at $413.49. In addition, Lululemon Athletica inc. saw -29.82% 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 4.42. 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 sum up, Lululemon Athletica inc. (LULU) has seen a bad performance recently. Analysts have differing views on the stock, with some seeing 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.
