The stock of Lululemon Athletica inc. (LULU) has gone down by -2.48% for the week, with a -3.68% drop in the past month and a -24.50% drop in the past quarter. The volatility ratio for the week is 1.84%, and the volatility levels for the past 30 days are 2.12% for LULU.. The simple moving average for the past 20 days is -2.03% for LULU’s stock, with a -17.53% simple moving average for the past 200 days.
Is It Worth Investing in Lululemon Athletica inc. (NASDAQ: LULU) Right Now?
The price-to-earnings ratio for Lululemon Athletica inc. (NASDAQ: LULU) is above average at 28.30x, Company’s 36-month beta value is 1.30.Analysts have differing opinions 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 110.23M, and currently, short sellers hold a 3.44% ratio of that floaft. The average trading volume of LULU on May 09, 2024 was 1.94M shares.
LULU) stock’s latest price update
Lululemon Athletica inc. (NASDAQ: LULU) has experienced a decline in its stock price by -1.21 compared to its previous closing price of 349.85. However, the company has seen a fall of -2.48% in its stock price over the last five trading days. Seeking Alpha reported 2024-05-07 that Lululemon’s stock has fallen 30% this year, presenting a buying opportunity for investors. The company’s growth initiatives, including international expansion and doubling e-commerce and men’s revenue, are core reasons to remain invested in this name. Lululemon’s strong gross margin profile outshines Nike’s by more than ten points. And despite superior earnings growth, Lululemon is now also trading at a cheaper valuation than the sportswear giant.
Analysts’ Opinion of LULU
Barclays, on the other hand, stated in their research note that they expect to see LULU reach a price target of $395, previously predicting the price at $546. The rating they have provided for LULU stocks is “Equal Weight” according to the report published on April 29th, 2024.
Jefferies gave a rating of “Underperform” to LULU, setting the target price at $240 in the report published on April 04th of the current year.
LULU Trading at -13.18% 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 -33.07% of loss for the given period.
Volatility was left at 2.12%, however, over the last 30 days, the volatility rate increased by 1.84%, as shares sank -1.32% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -26.13% lower at present.
During the last 5 trading sessions, LULU fell by -2.48%, which changed the moving average for the period of 200-days by -9.14% in comparison to the 20-day moving average, which settled at $352.55. In addition, Lululemon Athletica inc. saw -32.40% 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 4.25. 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 a nutshell, Lululemon Athletica inc. (LULU) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. 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.
