lululemon athletica (NASDAQ:LULU) Cut to “Strong Sell” at Zacks Research

lululemon athletica (NASDAQ:LULU) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Wednesday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the stock. Barclays reduced their target price on shares of lululemon athletica from $161.00 to $113.00 and set an “equal weight” rating for the company in a report on Friday, June 5th. Robert W. Baird reduced their target price on shares of lululemon athletica from $170.00 to $140.00 and set a “neutral” rating for the company in a report on Friday, June 5th. UBS Group reduced their target price on shares of lululemon athletica from $153.00 to $124.00 and set a “neutral” rating for the company in a report on Sunday, June 7th. Freedom Capital raised shares of lululemon athletica from a “strong sell” rating to a “hold” rating in a report on Friday, June 5th. Finally, Stifel Nicolaus reduced their target price on shares of lululemon athletica from $176.00 to $134.00 and set a “hold” rating for the company in a report on Friday, June 5th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twenty-seven have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $154.26.

lululemon athletica Price Performance

Shares of LULU opened at $121.84 on Wednesday. lululemon athletica has a 1-year low of $109.36 and a 1-year high of $252.24. The stock has a market cap of $14.71 billion, a PE ratio of 9.83, a price-to-earnings-growth ratio of 3.78 and a beta of 0.87. The firm has a fifty day moving average price of $138.86 and a 200 day moving average price of $168.71.

lululemon athletica (NASDAQ:LULU) last announced its quarterly earnings results on Thursday, June 4th. The apparel retailer reported $1.69 earnings per share for the quarter, beating analysts’ consensus estimates of $1.67 by $0.02. lululemon athletica had a net margin of 13.03% and a return on equity of 31.26%. The firm had revenue of $2.47 billion during the quarter, compared to analysts’ expectations of $2.44 billion. During the same period in the previous year, the company earned $2.60 earnings per share. lululemon athletica’s quarterly revenue was up 4.3% compared to the same quarter last year. lululemon athletica has set its FY 2026 guidance at 10.950-11.150 EPS and its Q2 2026 guidance at 1.760-1.810 EPS. As a group, equities analysts expect that lululemon athletica will post 11.26 EPS for the current fiscal year.

Insider Transactions at lululemon athletica

In other news, CEO Andre Maestrini purchased 3,275 shares of the company’s stock in a transaction dated Wednesday, April 1st. The shares were acquired at an average cost of $151.02 per share, for a total transaction of $494,590.50. Following the completion of the purchase, the chief executive officer directly owned 34,551 shares in the company, valued at $5,217,892.02. The trade was a 10.47% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Charles V. Bergh purchased 6,090 shares of the company’s stock in a transaction dated Friday, March 20th. The shares were purchased at an average price of $164.20 per share, for a total transaction of $999,978.00. Following the completion of the purchase, the director owned 6,090 shares of the company’s stock, valued at approximately $999,978. This trade represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 0.54% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in LULU. Norges Bank acquired a new position in lululemon athletica during the fourth quarter worth about $362,598,000. Boston Partners acquired a new position in lululemon athletica during the fourth quarter worth about $304,875,000. Vanguard Group Inc. grew its position in lululemon athletica by 3.9% during the third quarter. Vanguard Group Inc. now owns 13,782,917 shares of the apparel retailer’s stock worth $2,452,394,000 after buying an additional 521,915 shares during the period. Invesco Ltd. grew its position in lululemon athletica by 28.7% during the third quarter. Invesco Ltd. now owns 2,200,552 shares of the apparel retailer’s stock worth $391,544,000 after buying an additional 490,127 shares during the period. Finally, Goldman Sachs Group Inc. grew its position in lululemon athletica by 77.3% during the fourth quarter. Goldman Sachs Group Inc. now owns 979,054 shares of the apparel retailer’s stock worth $203,457,000 after buying an additional 426,860 shares during the period. 85.20% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting lululemon athletica

Here are the key news stories impacting lululemon athletica this week:

• Positive Sentiment: Several articles highlighted Lululemon as a potentially undervalued stock, citing its low forward P/E and strong cash flow, which could support a re-rating if operations stabilize. Is lululemon athletica inc. (LULU) A Good Stock To Buy Now?
• Positive Sentiment: Optimistic coverage also pointed to Lululemon as one of the “best Canadian stocks” and noted continued investor interest after its earnings report, which may be helping sentiment. Lululemon Athletica (LULU): 10 Best Canadian Stocks to Invest In According to Billionaires
• Positive Sentiment: Management’s push to accelerate renewable energy across the Chinese supply chain aligns with the company’s Impact Agenda 2030 and may reinforce its sustainability credentials with long-term investors. Lululemon Accelerates Renewable Energy Across Its Chinese Supply Chain

lululemon athletica Company Profile

lululemon athletica inc. is a design-focused athletic apparel company known for performance-oriented apparel, footwear and accessories. The company’s product portfolio centers on technical apparel for yoga, running, training and everyday active lifestyle use and includes tops, bottoms, outerwear, underwear, bags and a growing footwear assortment. lululemon emphasizes fabric science and product innovation, marketing garments that blend performance features with lifestyle styling.

Products are developed in-house and produced through a network of third-party manufacturers.