Lululemon Athletica inc (LULU) Stock: Understanding the Volatility

The stock of Lululemon Athletica inc (LULU) has gone down by -3.53% for the week, with a 24.59% rise in the past month and a 42.43% rise in the past quarter. The volatility ratio for the week is 2.16%, and the volatility levels for the past 30 days are 3.39% for LULU. The simple moving average for the past 20 days is 8.08% for LULU’s stock, with a 21.62% simple moving average for the past 200 days.

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 27.85x. The stock has a 36-month beta value of 1.22. Opinions on the stock are mixed, with 16 analysts rating it as a “buy,” 4 as “overweight,” 13 as “hold,” and 2 as “sell.”

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The public float for LULU is 106.18M, and at present, short sellers hold a 5.18% of that float. On December 18, 2024, the average trading volume of LULU was 2.09M shares.

LULU) stock’s latest price update

Lululemon Athletica inc (NASDAQ: LULU) has experienced a decline in its stock price by -1.26 compared to its previous closing price of 390.59. However, the company has seen a fall of -3.53% in its stock price over the last five trading days. fool.com reported 2024-12-17 that Explore the exciting world of Lululemon Athletica (LULU 0.22%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!

Analysts’ Opinion of LULU

Many brokerage firms have already submitted their reports for LULU stocks, with Telsey Advisory Group repeating the rating for LULU by listing it as a “Outperform.” The predicted price for LULU in the upcoming period, according to Telsey Advisory Group is $430 based on the research report published on December 06, 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 $220. The rating they have provided for LULU stocks is “Underperform” according to the report published on December 02nd, 2024.

LULU Trading at 18.75% 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 -25.32% of loss for the given period.

Volatility was left at 3.39%, however, over the last 30 days, the volatility rate increased by 2.16%, as shares surge +26.95% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +38.54% upper at present.

During the last 5 trading sessions, LULU fell by -4.14%, which changed the moving average for the period of 200-days by -14.09% in comparison to the 20-day moving average, which settled at $356.71. In addition, Lululemon Athletica inc saw -24.57% 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 BURGOYNE CELESTE, who sale 24,870 shares at the price of $405.54 back on Dec 09 ’24. After this action, BURGOYNE CELESTE now owns 12,429 shares of Lululemon Athletica inc, valued at $10,085,719 using the latest closing price.

CELESTE BURGOYNE, the Officer of Lululemon Athletica inc, proposed sale 2,300 shares at $402.16 during a trade that took place back on Dec 09 ’24, which means that CELESTE BURGOYNE is holding shares at $924,968 based on the most recent closing price.

Stock Fundamentals for LULU

Current profitability levels for the company are sitting at:

  • 0.24 for the present operating margin
  • 0.59 for the gross margin

The net margin for Lululemon Athletica inc stands at 0.17. The total capital return value is set at 0.56. Equity return is now at value 46.21, with 26.49 for asset returns.

Based on Lululemon Athletica inc (LULU), the company’s capital structure generated 0.26 points at debt to capital in total, while cash flow to debt ratio is standing at 1.49.

Currently, EBITDA for the company is 2.59 billion with net debt to EBITDA at 0.12. When we switch over and look at the enterprise to sales, we see a ratio of 4.41. The receivables turnover for the company is 70.99for trailing twelve months and the total asset turnover is 1.6. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.00.

Conclusion

To sum up, Lululemon Athletica inc (LULU) has seen a mixed performance recently. Analysts have differing views on the stock, with some seeing it as a “sell” 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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