Lululemon Athletica inc. (NASDAQ: LULU)’s stock price has dropped by -1.72 in relation to previous closing price of 360.60. Nevertheless, the company has seen a loss of -2.79% in its stock price over the last five trading days. Seeking Alpha reported 2024-04-30 that Lululemon stock plunged into a bear market as investors worried about the impact of a steep slowdown in 2024. LULU isn’t priced at a discount. Therefore, the market’s discontent over its weak guidance is justified. However, LULU’s stock buying sentiment has improved over the last two weeks, suggesting the worst could be over.
Is It Worth Investing in Lululemon Athletica inc. (NASDAQ: LULU) Right Now?
Lululemon Athletica inc. (NASDAQ: LULU) has a higher price-to-earnings ratio of 29.02x compared to its average ratio, The 36-month beta value for LULU is at 1.30. Analysts have varying views on the stock, with 11 analysts rating it as a “buy,” 7 rating it as “overweight,” 15 as “hold,” and 1 as “sell.”
The public float for LULU is 109.76M, and currently, shorts hold a 3.46% of that float. The average trading volume for LULU on May 02, 2024 was 1.95M shares.
LULU’s Market Performance
LULU stock saw a decrease of -2.79% in the past week, with a monthly decline of -6.26% and a quarterly a decrease of -21.91%. The volatility ratio for the week is 2.15%, and the volatility levels for the last 30 days are 2.21% for Lululemon Athletica inc. (LULU). The simple moving average for the last 20 days is -0.21% for LULU’s stock, with a simple moving average of -15.59% for the last 200 days.
Analysts’ Opinion of LULU
Many brokerage firms have already submitted their reports for LULU stocks, with Barclays repeating the rating for LULU by listing it as a “Equal Weight.” The predicted price for LULU in the upcoming period, according to Barclays is $395 based on the research report published on April 29, 2024 of the current year 2024.
Jefferies, on the other hand, stated in their research note that they expect to see LULU reach a price target of $240, previously predicting the price at $300. The rating they have provided for LULU stocks is “Underperform” according to the report published on April 04th, 2024.
Needham gave a rating of “Buy” to LULU, setting the target price at $500 in the report published on March 22nd of the current year.
LULU Trading at -13.19% 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 -31.37% of loss for the given period.
Volatility was left at 2.21%, however, over the last 30 days, the volatility rate increased by 2.15%, as shares sank -5.24% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -20.29% lower at present.
During the last 5 trading sessions, LULU fell by -2.79%, which changed the moving average for the period of 200-days by -7.63% in comparison to the 20-day moving average, which settled at $354.16. In addition, Lululemon Athletica inc. saw -30.69% 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 4.36. 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
In conclusion, Lululemon Athletica inc. (LULU) has had a bad performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others 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.
