Shorepath Capital Management LLC Invests $3.23 Million in Lululemon Athletica Inc. (NASDAQ:LULU)

Shorepath Capital Management LLC purchased a new position in Lululemon Athletica Inc. (NASDAQ:LULU) in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 6,310 shares of the apparel retailer’s stock, valued at approximately $3,226,000. Lululemon Athletica makes up about 2.9% of Shorepath Capital Management LLC’s portfolio, making the stock its 19th biggest holding.

Other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in shares of Lululemon Athletica by 0.5% during the 3rd quarter. Vanguard Group Inc. now owns 7,323,850 shares of the apparel retailer’s stock worth $2,824,150,000 after purchasing an additional 38,432 shares during the period. Morgan Stanley lifted its position in shares of Lululemon Athletica by 29.2% during the third quarter. Morgan Stanley now owns 1,934,683 shares of the apparel retailer’s stock worth $746,034,000 after purchasing an additional 437,069 shares in the last quarter. Schroder Investment Management Group boosted its stake in shares of Lululemon Athletica by 20.0% in the third quarter. Schroder Investment Management Group now owns 1,865,091 shares of the apparel retailer’s stock valued at $719,198,000 after purchasing an additional 310,347 shares during the period. Capital World Investors grew its holdings in shares of Lululemon Athletica by 0.9% in the fourth quarter. Capital World Investors now owns 1,547,793 shares of the apparel retailer’s stock valued at $791,371,000 after purchasing an additional 14,112 shares in the last quarter. Finally, American Century Companies Inc. lifted its holdings in Lululemon Athletica by 11.1% during the 3rd quarter. American Century Companies Inc. now owns 1,373,814 shares of the apparel retailer’s stock worth $529,756,000 after buying an additional 137,454 shares in the last quarter. 85.20% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on LULU. Guggenheim cut their price objective on Lululemon Athletica from $550.00 to $525.00 and set a “buy” rating on the stock in a research report on Friday, March 22nd. The Goldman Sachs Group reduced their price objective on shares of Lululemon Athletica from $521.00 to $463.00 and set a “buy” rating on the stock in a report on Friday, May 24th. HSBC raised Lululemon Athletica from a “hold” rating to a “buy” rating and upped their price target for the company from $405.00 to $425.00 in a report on Thursday, June 6th. TD Securities cut their price target on shares of Lululemon Athletica from $515.00 to $437.00 and set a “buy” rating on the stock in a research note on Wednesday, May 29th. Finally, Oppenheimer restated an “outperform” rating and issued a $445.00 price objective on shares of Lululemon Athletica in a research note on Thursday, June 6th. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and twenty-four have given a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $433.06.

Lululemon Athletica Stock Performance

Shares of NASDAQ LULU traded down $1.48 during mid-day trading on Friday, reaching $306.01. 1,472,697 shares of the company traded hands, compared to its average volume of 3,582,924. The company’s fifty day moving average is $334.65 and its two-hundred day moving average is $418.67. Lululemon Athletica Inc. has a fifty-two week low of $293.03 and a fifty-two week high of $516.39. The stock has a market cap of $38.56 billion, a PE ratio of 24.54, a price-to-earnings-growth ratio of 1.39 and a beta of 1.27.

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

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

Insider Transactions at Lululemon Athletica

In other news, Director Martha A. M. Morfitt purchased 700 shares of Lululemon Athletica stock in a transaction on Tuesday, March 26th. The shares were purchased at an average cost of $389.29 per share, for a total transaction of $272,503.00. Following the completion of the transaction, the director now directly owns 500 shares in the company, valued at $194,645. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.48% of the stock is currently owned by insiders.

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.