Lululemon Athletica inc (NASDAQ: LULU)’s stock price has decreased by -2.54 compared to its previous closing price of 398.86. However, the company has seen a -1.66% decrease in its stock price over the last five trading sessions. forbes.com reported 2025-01-14 that Lululemon is aiming to double sales and pass the 1,000-store mark in the next few years according to ambitious CEO Calvin McDonald, who set out plans to become a “globally dominant” brand at the NRF Big Show in New York today.
Is It Worth Investing in Lululemon Athletica inc (NASDAQ: LULU) Right Now?
The price-to-earnings ratio for Lululemon Athletica inc (NASDAQ: LULU) is 28.08x, which is above its average ratio. Moreover, the 36-month beta value for LULU is 1.18. Analysts have varying opinions on the stock, with 17 analysts rating it as a “buy,” 5 as “overweight,” 12 as “hold,” and 2 as “sell.”
The public float for LULU is 106.28M and currently, short sellers hold a 4.65% of that float. On January 15, 2025, LULU’s average trading volume was 1.96M shares.
LULU’s Market Performance
The stock of Lululemon Athletica inc (LULU) has seen a -1.66% decrease in the past week, with a -2.75% drop in the past month, and a 39.71% gain in the past quarter. The volatility ratio for the week is 3.63%, and the volatility levels for the past 30 days are at 2.91% for LULU. The simple moving average for the last 20 days is 0.71% for LULU stock, with a simple moving average of 24.50% for the last 200 days.
Analysts’ Opinion of LULU
Needham, on the other hand, stated in their research note that they expect to see LULU reach a price target of $475. The rating they have provided for LULU stocks is “Buy” according to the report published on January 10th, 2025.
Bernstein gave a rating of “Outperform” to LULU, setting the target price at $460 in the report published on January 07th of the current year.
LULU Trading at 9.68% 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 -20.87% of loss for the given period.
Volatility was left at 2.91%, however, over the last 30 days, the volatility rate increased by 3.63%, as shares sank -0.15% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +27.94% upper at present.
During the last 5 trading sessions, LULU fell by -1.66%, which changed the moving average for the period of 200-days by -0.18% in comparison to the 20-day moving average, which settled at $386.02. In addition, Lululemon Athletica inc saw 1.66% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at LULU starting from NEUBURGER NICOLE, who sale 2,022 shares at the price of $387.11 back on Dec 26 ’24. After this action, NEUBURGER NICOLE now owns 6,198 shares of Lululemon Athletica inc, valued at $782,735 using the latest closing price.
NICOLE NEUBURGER, the Officer of Lululemon Athletica inc, proposed sale 2,022 shares at $387.11 during a trade that took place back on Dec 26 ’24, which means that NICOLE NEUBURGER is holding shares at $782,735 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 4.49. 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 wrap up, the performance of Lululemon Athletica inc (LULU) has been mixed in recent times. The stock has received a bearish of “sell” 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.
