Investors Purchase High Volume of lululemon athletica Put Options (NASDAQ:LULU)

lululemon athletica inc. (NASDAQ:LULU) was the recipient of some unusual options trading activity on Thursday. Investors acquired 78,806 put options on the company. This represents an increase of approximately 113% compared to the average daily volume of 36,929 put options.

lululemon athletica Stock Performance

Shares of lululemon athletica stock opened at $96.88 on Friday. The company has a market capitalization of $11.50 billion, a P/E ratio of 7.93, a PEG ratio of 2.55 and a beta of 0.87. lululemon athletica has a 1 year low of $95.67 and a 1 year high of $225.98. The company’s fifty day moving average is $117.16 and its two-hundred day moving average is $133.76.

lululemon athletica (NASDAQ:LULU) last announced its earnings results on Thursday, September 3rd. The apparel retailer reported $2.92 EPS for the quarter, beating analysts’ consensus estimates of $1.79 by $1.13. lululemon athletica had a net margin of 12.78% and a return on equity of 27.69%. The business had revenue of $2.42 billion during the quarter, compared to analysts’ expectations of $2.46 billion. During the same period in the prior year, the company earned $3.10 earnings per share. The business’s revenue was down 4.3% compared to the same quarter last year. lululemon athletica has set its FY 2026 guidance at 9.480-9.730 EPS and its Q3 2026 guidance at 0.930-0.980 EPS. As a group, equities analysts expect that lululemon athletica will post 8.91 earnings per share for the current year.

Key Headlines Impacting lululemon athletica

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

• Positive Sentiment: Lululemon reported quarterly EPS of $2.92, substantially above the $1.79 analyst consensus. However, $0.86 per share of the result came from a one-time $134.5 million federal tariff refund, limiting the earnings beat’s quality. Levi & Korsinsky investigation notice
• Neutral Sentiment: Citigroup lowered its price target from $130 to $117 while maintaining a Neutral rating. The revised target remains above the stock’s recent level, but the reduction reflects weaker sales and an uncertain fiscal 2027 outlook.
• Neutral Sentiment: BMO Capital Markets initiated coverage of LULU, adding another Wall Street view as investors assess the company’s new leadership and turnaround prospects. Related coverage characterized BMO’s stance as Underperform with a $70 target. BMO Capital Markets initiates coverage
• Negative Sentiment: The primary catalyst for the selloff was Lululemon’s second-quarter report and another reduction to full-year guidance. Revenue declined roughly 4% year over year, with brand and demand pressure in North America and China, while investors remain concerned about margin pressure and premium-product demand. Lululemon plunges after outlook cut
• Negative Sentiment: Several law firms, including BFA Law, Bronstein Gewirtz & Grossman, Pomerantz and Levi & Korsinsky, announced investigations into whether Lululemon misled investors about growth, business health or the impact of tariff refunds. These are allegations, not findings, but they add reputational and potential litigation risk. BFA Law investigation reminder
• Negative Sentiment: Bearish positioning increased, with put-option volume more than doubling its typical level. This suggests heightened demand for downside protection, although reported short-interest data appears unreliable because it lists zero shares and an invalid percentage change.

Insider Transactions at lululemon athletica

In other lululemon athletica news, Director Charles Bergh purchased 4,275 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was bought at an average price of $117.05 per share, with a total value of $500,388.75. Following the transaction, the director directly owned 10,365 shares of the company’s stock, valued at approximately $1,213,223.25. This represents a 70.20% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.54% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On lululemon athletica

Several large investors have recently modified their holdings of the stock. California State Teachers Retirement System lifted its position in lululemon athletica by 10,065.8% in the second quarter. California State Teachers Retirement System now owns 17,180,893 shares of the apparel retailer’s stock valued at $1,961,714,000 after purchasing an additional 17,011,886 shares during the period. BlackRock Inc. purchased a new stake in lululemon athletica in the 2nd quarter valued at approximately $1,010,565,000. Flossbach Von Storch SE acquired a new position in lululemon athletica during the 2nd quarter worth approximately $207,392,000. Norges Bank purchased a new position in shares of lululemon athletica during the 4th quarter worth approximately $362,598,000. Finally, Boston Partners purchased a new position in shares of lululemon athletica during the 4th quarter worth approximately $304,875,000. Hedge funds and other institutional investors own 85.20% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on LULU shares. Piper Sandler decreased their price objective on lululemon athletica from $110.00 to $80.00 and set a “neutral” rating for the company in a research note on Friday, September 4th. BMO Capital Markets initiated coverage on shares of lululemon athletica in a research report on Wednesday. They issued an “underperform” rating and a $70.00 price objective on the stock. JPMorgan Chase & Co. reduced their price objective on shares of lululemon athletica from $154.00 to $95.00 and set a “neutral” rating on the stock in a report on Friday, September 4th. Morgan Stanley decreased their price objective on shares of lululemon athletica from $93.00 to $83.00 and set an “underweight” rating for the company in a research report on Friday, September 4th. Finally, Stifel Nicolaus dropped their target price on lululemon athletica from $134.00 to $100.00 and set a “hold” rating on the stock in a report on Friday, September 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat, lululemon athletica currently has an average rating of “Reduce” and an average price target of $111.54.

lululemon athletica Company Profile

lululemon athletica inc. is a designer, distributor and retailer of athletic apparel, footwear and accessories. The company’s products are developed for activities including yoga, running, training, tennis and other forms of exercise, as well as everyday use. Its offerings include leggings, tops, shorts, outerwear, footwear, bags and fitness accessories for women and men.

Founded in 1998 in Vancouver, British Columbia, lululemon began as a yoga-focused apparel company and has expanded into a broader performance and lifestyle brand.