Morgan Stanley Cuts Lululemon Athletica (NASDAQ:LULU) Price Target to $314.00

Lululemon Athletica (NASDAQ:LULU) had its price objective dropped by stock analysts at Morgan Stanley from $326.00 to $314.00 in a research report issued on Tuesday, Marketbeat Ratings reports. The firm currently has an “overweight” rating on the apparel retailer’s stock. Morgan Stanley’s price target would suggest a potential upside of 20.52% from the company’s previous close.

LULU has been the subject of several other research reports. KeyCorp dropped their target price on shares of Lululemon Athletica from $415.00 to $350.00 and set an “overweight” rating for the company in a report on Friday, August 30th. UBS Group dropped their price objective on shares of Lululemon Athletica from $385.00 to $315.00 and set a “neutral” rating for the company in a research note on Tuesday, August 20th. Wells Fargo & Company dropped their target price on Lululemon Athletica from $350.00 to $285.00 and set an “equal weight” rating for the company in a report on Friday, August 23rd. Bank of America cut their price target on shares of Lululemon Athletica from $440.00 to $355.00 and set a “buy” rating on the stock in a report on Friday, August 30th. Finally, Telsey Advisory Group cut their price objective on Lululemon Athletica from $470.00 to $360.00 and set an “outperform” rating on the stock in a research report on Monday, August 26th. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating and twenty have issued a buy rating to the stock. According to data from MarketBeat.com, Lululemon Athletica currently has a consensus rating of “Moderate Buy” and a consensus price target of $354.55.

Lululemon Athletica Price Performance

NASDAQ LULU opened at $260.53 on Tuesday. Lululemon Athletica has a 1-year low of $226.01 and a 1-year high of $516.39. The business’s fifty day moving average price is $256.88 and its 200-day moving average price is $307.51. The stock has a market capitalization of $32.57 billion, a price-to-earnings ratio of 20.89, a PEG ratio of 1.40 and a beta of 1.25.

Lululemon Athletica (NASDAQ:LULU) last released its quarterly earnings results on Thursday, August 29th. The apparel retailer reported $3.15 earnings per share for the quarter, topping the consensus estimate of $2.93 by $0.22. Lululemon Athletica had a net margin of 16.34% and a return on equity of 42.59%. The business had revenue of $2.40 billion for the quarter, compared to the consensus estimate of $2.41 billion. During the same period last year, the firm earned $2.68 earnings per share. The company’s quarterly revenue was up 9.1% on a year-over-year basis. Equities research analysts anticipate that Lululemon Athletica will post 14.03 EPS for the current year.

Lululemon Athletica declared that its Board of Directors has authorized a stock buyback program on Wednesday, June 5th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the apparel retailer to purchase up to 2.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Lululemon Athletica

In other news, CEO Calvin Mcdonald bought 4,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 3rd. The shares were purchased at an average cost of $260.00 per share, with a total value of $1,040,000.00. Following the transaction, the chief executive officer now directly owns 89,922 shares in the company, valued at $23,379,720. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In other Lululemon Athletica news, CEO Calvin Mcdonald purchased 4,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 3rd. The shares were bought at an average price of $260.00 per share, for a total transaction of $1,040,000.00. Following the acquisition, the chief executive officer now owns 89,922 shares in the company, valued at $23,379,720. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Nicole Neuburger sold 486 shares of the firm’s stock in a transaction on Thursday, September 26th. The stock was sold at an average price of $269.59, for a total transaction of $131,020.74. Following the transaction, the insider now directly owns 6,198 shares of the company’s stock, valued at approximately $1,670,918.82. The disclosure for this sale can be found here. Insiders own 0.48% of the company’s stock.

Hedge Funds Weigh In On Lululemon Athletica

Large investors have recently made changes to their positions in the company. Scarborough Advisors LLC purchased a new stake in shares of Lululemon Athletica in the fourth quarter valued at approximately $26,000. Benjamin Edwards Inc. raised its holdings in Lululemon Athletica by 176.0% in the 1st quarter. Benjamin Edwards Inc. now owns 69 shares of the apparel retailer’s stock valued at $27,000 after acquiring an additional 44 shares during the last quarter. Riverview Trust Co acquired a new stake in shares of Lululemon Athletica in the first quarter valued at approximately $29,000. Larson Financial Group LLC increased its stake in shares of Lululemon Athletica by 78.2% in the 2nd quarter. Larson Financial Group LLC now owns 98 shares of the apparel retailer’s stock worth $29,000 after acquiring an additional 43 shares during the last quarter. Finally, True Wealth Design LLC raised its stake in Lululemon Athletica by 2,950.0% during the fourth quarter. True Wealth Design LLC now owns 61 shares of the apparel retailer’s stock worth $31,000 after purchasing an additional 59 shares during the period. 85.20% of the stock is currently 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.