Jefferies Financial Group Reiterates Underperform Rating for Lululemon Athletica (NASDAQ:LULU)

Lululemon Athletica (NASDAQ:LULU)‘s stock had its “underperform” rating reaffirmed by equities researchers at Jefferies Financial Group in a research report issued to clients and investors on Thursday, Benzinga reports. They currently have a $220.00 price target on the apparel retailer’s stock. Jefferies Financial Group’s price target would indicate a potential downside of 11.05% from the company’s previous close.

Several other equities analysts also recently weighed in on the stock. UBS Group decreased their price target on shares of Lululemon Athletica from $475.00 to $385.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 22nd. Oppenheimer restated an “outperform” rating and set a $445.00 target price on shares of Lululemon Athletica in a report on Thursday, June 6th. Citigroup cut Lululemon Athletica from a “buy” rating to a “neutral” rating and cut their price target for the company from $415.00 to $300.00 in a report on Thursday. HSBC raised Lululemon Athletica from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $405.00 to $425.00 in a research note on Thursday, June 6th. Finally, Morgan Stanley cut their target price on Lululemon Athletica from $490.00 to $404.00 and set an “overweight” rating for the company in a research note on Wednesday, May 29th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and twenty-three have issued a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $422.87.

Lululemon Athletica Stock Performance

Lululemon Athletica stock traded down $24.74 during trading on Thursday, reaching $247.32. The company had a trading volume of 9,301,157 shares, compared to its average volume of 2,087,235. The firm’s 50-day simple moving average is $303.63 and its 200 day simple moving average is $380.66. The firm has a market capitalization of $30.92 billion, a PE ratio of 19.83, a price-to-earnings-growth ratio of 1.40 and a beta of 1.26. Lululemon Athletica has a 1-year low of $245.59 and a 1-year high of $516.39.

Lululemon Athletica (NASDAQ:LULU) last issued its quarterly earnings results on Wednesday, June 5th. The apparel retailer reported $2.54 EPS for the quarter, topping the consensus estimate of $2.38 by $0.16. The firm had revenue of $2.21 billion during the quarter, compared to analysts’ expectations of $2.20 billion. Lululemon Athletica had a return on equity of 42.64% and a net margin of 16.09%. The firm’s revenue for the quarter was up 10.4% on a year-over-year basis. During the same period in the previous year, the business earned $2.28 earnings per share. Analysts anticipate that Lululemon Athletica will post 14.29 EPS for the current year.

Lululemon Athletica declared that its board has initiated a share buyback plan on Wednesday, June 5th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the apparel retailer to repurchase up to 2.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Valley National Advisers Inc. increased its stake in shares of Lululemon Athletica by 600.0% during the fourth quarter. Valley National Advisers Inc. now owns 49 shares of the apparel retailer’s stock worth $25,000 after buying an additional 42 shares during the period. Tidemark LLC purchased a new stake in shares of Lululemon Athletica in the 4th quarter valued at approximately $26,000. Scarborough Advisors LLC purchased a new stake in shares of Lululemon Athletica during the 4th quarter worth $26,000. Benjamin Edwards Inc. grew its stake in shares of Lululemon Athletica by 176.0% during the first quarter. Benjamin Edwards Inc. now owns 69 shares of the apparel retailer’s stock worth $27,000 after purchasing an additional 44 shares in the last quarter. Finally, Riverview Trust Co purchased a new position in Lululemon Athletica in the first quarter valued at $29,000. 85.20% of the stock is owned by institutional investors and hedge funds.

Lululemon Athletica Company Profile

Lululemon Athletica Inc, together with its subsidiaries, designs, distributes, and retails athletic apparel, footwear, and accessories under the lululemon brand for women and men. It offers pants, shorts, tops, and jackets for healthy lifestyle, such as yoga, running, training, and other activities. It also provides fitness-inspired accessories.