Lululemon Athletica inc. (NASDAQ: LULU) has seen a rise in its stock price by 2.10 in relation to its previous close of 291.63. However, the company has experienced a 3.83% gain in its stock price over the last five trading sessions. reuters.com reported 2024-10-21 that United Arab Emirates’ Lulu Group International, which runs one of the Middle East’s biggest hypermarket chains, plans to sell a 25% stake in its Abu Dhabi initial public offering, Khaleej Times reported on Monday, citing a prospectus.
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 23.01x. The 36-month beta value for LULU is also noteworthy at 1.25. There are mixed opinions on the stock, with 11 analysts rating it as a “buy,” 7 rating it as “overweight,” 15 rating it as “hold,” and 1 rating it as “sell.”
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The public float for LULU is 107.08M, and at present, short sellers hold a 5.11% of that float. The average trading volume of LULU on October 22, 2024 was 2.28M shares.
LULU’s Market Performance
LULU stock saw an increase of 3.83% in the past week, with a monthly gain of 13.38% and a quarterly increase of 5.82%. The volatility ratio for the week is 3.18%, and the volatility levels for the last 30 days are 3.06% for Lululemon Athletica inc. (LULU). The simple moving average for the last 20 days is 7.88% for LULU stock, with a simple moving average of -13.60% for the last 200 days.
Analysts’ Opinion of LULU
Many brokerage firms have already submitted their reports for LULU stocks, with Morgan Stanley repeating the rating for LULU by listing it as a “Overweight.” The predicted price for LULU in the upcoming period, according to Morgan Stanley is $314 based on the research report published on October 01, 2024 of the current year 2024.
Wedbush, on the other hand, stated in their research note that they expect to see LULU reach a price target of $324, previously predicting the price at $400. The rating they have provided for LULU stocks is “Outperform” according to the report published on August 28th, 2024.
Telsey Advisory Group gave a rating of “Outperform” to LULU, setting the target price at $360 in the report published on August 26th of the current year.
LULU Trading at 12.01% 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 -42.34% of loss for the given period.
Volatility was left at 3.06%, however, over the last 30 days, the volatility rate increased by 3.18%, as shares surge +14.60% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +24.72% upper at present.
During the last 5 trading sessions, LULU rose by +3.83%, which changed the moving average for the period of 200-days by -39.97% in comparison to the 20-day moving average, which settled at $276.00. In addition, Lululemon Athletica inc. saw -41.77% 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 NEUBURGER NICOLE, who sale 486 shares at the price of $269.59 back on Sep 26 ’24. After this action, NEUBURGER NICOLE now owns 6,198 shares of Lululemon Athletica inc., valued at $131,021 using the latest closing price.
NICOLE NEUBURGER, the Officer of Lululemon Athletica inc., proposed sale 486 shares at $269.59 during a trade that took place back on Sep 26 ’24, which means that NICOLE NEUBURGER is holding shares at $131,021 based on the most recent closing price.
Stock Fundamentals for LULU
Current profitability levels for the company are sitting at:
- 0.23 for the present operating margin
- 0.59 for the gross margin
The net margin for Lululemon Athletica inc. stands at 0.16. The total capital return value is set at 0.44. Equity return is now at value 43.16, with 25.64 for asset returns.
Based on Lululemon Athletica inc. (LULU), the company’s capital structure generated 0.27 points at debt to capital in total, while cash flow to debt ratio is standing at 1.61.
Currently, EBITDA for the company is 2.59 billion with net debt to EBITDA at -0.05. When we switch over and look at the enterprise to sales, we see a ratio of 3.49. The receivables turnover for the company is 79.2for trailing twelve months and the total asset turnover is 1.48. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.43.
Conclusion
In summary, Lululemon Athletica inc. (LULU) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing 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.
