Lululemon Athletica (NASDAQ:LULU) Price Target Cut to $329.00 by Analysts at Morgan Stanley

Lululemon Athletica (NASDAQ:LULU) had its price objective lowered by Morgan Stanley from $404.00 to $329.00 in a report released on Monday morning, Benzinga reports. Morgan Stanley currently has an overweight rating on the apparel retailer’s stock.

A number of other equities research analysts also recently weighed in on LULU. Robert W. Baird cut their price target on shares of Lululemon Athletica from $470.00 to $350.00 and set an outperform rating for the company in a report on Wednesday, July 31st. BMO Capital Markets cut their target price on shares of Lululemon Athletica from $420.00 to $384.00 and set a market perform rating for the company in a research note on Thursday, June 6th. Sanford C. Bernstein lifted their price target on shares of Lululemon Athletica from $376.00 to $382.00 and gave the stock a market perform rating in a research report on Friday, June 7th. Piper Sandler reaffirmed a neutral rating and issued a $250.00 price target on shares of Lululemon Athletica in a report on Friday, August 23rd. Finally, Evercore ISI reduced their price objective on Lululemon Athletica from $400.00 to $300.00 and set an outperform rating for the company in a research note on Friday, July 26th. Two equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and twenty-one have assigned a buy rating to the stock. According to data from MarketBeat.com, Lululemon Athletica has an average rating of Moderate Buy and a consensus price target of $375.00.

Lululemon Athletica Price Performance

Shares of NASDAQ:LULU opened at $259.01 on Monday. The stock has a market cap of $32.38 billion, a price-to-earnings ratio of 20.77, a PEG ratio of 1.25 and a beta of 1.26. Lululemon Athletica has a 12 month low of $226.01 and a 12 month high of $516.39. The stock’s 50 day moving average price is $273.65 and its 200 day moving average price is $341.85.

Lululemon Athletica (NASDAQ:LULU) last issued its quarterly earnings results on Thursday, August 29th. The apparel retailer reported $3.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.96 by $0.19. The company had revenue of $2.40 billion for the quarter, compared to analysts’ expectations of $2.41 billion. Lululemon Athletica had a return on equity of 42.64% and a net margin of 16.09%. The firm’s revenue for the quarter was up 9.1% on a year-over-year basis. During the same period last year, the firm earned $2.68 EPS. On average, sell-side analysts expect that Lululemon Athletica will post 14.22 EPS for the current year.

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

Hedge Funds Weigh In On Lululemon Athletica

A number of hedge funds have recently added to or reduced their stakes in LULU. Tidemark LLC acquired a new position in Lululemon Athletica during the fourth quarter worth $26,000. Scarborough Advisors LLC bought a new position in shares of Lululemon Athletica in the 4th quarter valued at approximately $26,000. Richardson Financial Services Inc. bought a new position in shares of Lululemon Athletica in the 4th quarter valued at approximately $31,000. True Wealth Design LLC lifted its holdings in Lululemon Athletica by 2,950.0% in the 4th 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 last quarter. Finally, Benjamin Edwards Inc. boosted its position in Lululemon Athletica by 176.0% during the first quarter. Benjamin Edwards Inc. now owns 69 shares of the apparel retailer’s stock worth $27,000 after purchasing an additional 44 shares during the period. Institutional investors and hedge funds own 85.20% of the company’s stock.

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.