Zacks Investment Research upgraded shares of Lululemon Athletica (NASDAQ:LULU) from a hold rating to a buy rating in a research report sent to investors on Monday, Zacks.com reports. Zacks Investment Research currently has $213.00 price target on the apparel retailer’s stock.
According to Zacks, “Shares of lululemon have increased and outpaced the industry year to date. This can be attributed to the company’s positive earnings and sales surprise streak as well as a strong view for the third quarter and fiscal 2019. The stellar performance indicates that the company’s merchandising policies and investments to achieve growth across sales channels are yielding. Speaking of growth endeavors, management is on track with the Power of Three strategic plan. Further, it has been gaining from consistent growth in comps, backed by digital growth. However, concerns regarding the potential impact of tariffs and additional airfreight costs cannot be ignored. These costs are likely to exert pressure on gross margin and drag down earnings per share by 4-5 cents in fiscal 2019. Moreover, currency headwinds are persistent threats.”
Several other brokerages have also recently issued reports on LULU. Citigroup reiterated a buy rating on shares of Lululemon Athletica in a research note on Friday, September 6th. Oppenheimer set a $225.00 price objective on Lululemon Athletica and gave the company a buy rating in a research note on Friday, September 6th. Guggenheim reiterated a buy rating and issued a $220.00 price objective on shares of Lululemon Athletica in a research note on Thursday, September 5th. Telsey Advisory Group lifted their price objective on Lululemon Athletica from $205.00 to $220.00 and gave the company an outperform rating in a research note on Friday, September 6th. Finally, B. Riley set a $176.00 price objective on Lululemon Athletica and gave the company a hold rating in a research note on Friday, September 6th. Eleven equities research analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the company. The stock presently has an average rating of Buy and a consensus price target of $204.64.
Lululemon Athletica (NASDAQ:LULU) last announced its quarterly earnings data on Thursday, September 5th. The apparel retailer reported $0.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.07. The business had revenue of $883.35 million during the quarter, compared to analysts’ expectations of $845.03 million. Lululemon Athletica had a return on equity of 39.54% and a net margin of 14.93%. The business’s quarterly revenue was up 22.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.71 EPS. Equities research analysts anticipate that Lululemon Athletica will post 4.73 earnings per share for the current year.
In other news, Director David M. Mussafer sold 4,484 shares of the firm’s stock in a transaction dated Thursday, June 20th. The stock was sold at an average price of $186.10, for a total transaction of $834,472.40. Following the sale, the director now owns 18,947 shares of the company’s stock, valued at approximately $3,526,036.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Dennis J. Wilson sold 46,725 shares of the firm’s stock in a transaction dated Monday, September 9th. The stock was sold at an average price of $195.94, for a total value of $9,155,296.50. Following the sale, the director now directly owns 3,852 shares in the company, valued at approximately $754,760.88. The disclosure for this sale can be found here. Insiders have sold a total of 425,032 shares of company stock worth $80,229,658 in the last three months. Corporate insiders own 0.34% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of LULU. Meridian Wealth Management LLC acquired a new position in Lululemon Athletica during the first quarter worth approximately $25,000. Virtus ETF Advisers LLC acquired a new position in Lululemon Athletica during the second quarter worth approximately $27,000. SevenBridge Financial Group LLC acquired a new position in Lululemon Athletica during the second quarter worth approximately $35,000. Cordasco Financial Network acquired a new position in Lululemon Athletica during the second quarter worth approximately $36,000. Finally, Winslow Evans & Crocker Inc. increased its position in Lululemon Athletica by 2,000.0% during the second quarter. Winslow Evans & Crocker Inc. now owns 210 shares of the apparel retailer’s stock worth $38,000 after buying an additional 200 shares during the period. 81.22% of the stock is currently owned by institutional investors and hedge funds.
About Lululemon Athletica
lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women, men, and female youth. It operates through two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training, as well as other sweaty pursuits; and athletic wear for female youth.
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