Lululemon Athletica (NASDAQ:LULU) Shares Gap Down to $308.30

Lululemon Athletica Inc. (NASDAQ:LULU)’s stock price gapped down prior to trading on Friday . The stock had previously closed at $308.30, but opened at $302.00. Lululemon Athletica shares last traded at $300.81, with a volume of 332,091 shares trading hands.

Analyst Ratings Changes

LULU has been the subject of several research reports. BMO Capital Markets decreased their price target 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. Bank of America increased their price target on shares of Lululemon Athletica from $430.00 to $440.00 and gave the company a “buy” rating in a report on Thursday, June 6th. Evercore ISI lowered their price target on shares of Lululemon Athletica from $515.00 to $400.00 in a report on Wednesday, June 5th. Wells Fargo & Company decreased their target price on shares of Lululemon Athletica from $425.00 to $350.00 and set an “equal weight” rating on the stock in a research report on Thursday, June 6th. Finally, Oppenheimer restated an “outperform” rating and set a $445.00 target price on shares of Lululemon Athletica in a research report on Thursday, June 6th. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and twenty-four have given a buy rating to the stock. According to data from MarketBeat, Lululemon Athletica has a consensus rating of “Moderate Buy” and a consensus target price of $433.06.

Lululemon Athletica Price Performance

The firm has a fifty day simple moving average of $327.07 and a 200-day simple moving average of $407.51. The firm has a market cap of $37.34 billion, a P/E ratio of 23.95, a price-to-earnings-growth ratio of 1.53 and a beta of 1.27.

Lululemon Athletica (NASDAQ:LULU) last posted its 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 return on equity of 42.64% and a net margin of 16.09%. The company had revenue of $2.21 billion for the quarter, compared to analyst estimates of $2.20 billion. During the same quarter last year, the company earned $2.28 earnings per share. The company’s revenue for the quarter was up 10.4% on a year-over-year basis. On average, equities analysts predict that Lululemon Athletica Inc. will post 14.29 earnings per share for the current year.

Lululemon Athletica announced that its Board of Directors has approved a share buyback plan on Wednesday, June 5th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the apparel retailer to repurchase up to 2.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Institutional Trading of Lululemon Athletica

Several hedge funds have recently made changes to their positions in the company. Valley National Advisers Inc. raised its stake in shares of Lululemon Athletica by 600.0% during the 4th quarter. Valley National Advisers Inc. now owns 49 shares of the apparel retailer’s stock valued at $25,000 after purchasing an additional 42 shares during the period. Tidemark LLC bought a new stake in shares of Lululemon Athletica during the 4th quarter valued at $26,000. Scarborough Advisors LLC bought a new stake in shares of Lululemon Athletica during the 4th quarter valued at $26,000. Morton Brown Family Wealth LLC bought a new stake in shares of Lululemon Athletica during the 4th quarter valued at $31,000. Finally, Richardson Financial Services Inc. bought a new stake in shares of Lululemon Athletica during the 4th quarter valued at $31,000. 85.20% of the stock is currently owned by institutional investors.

About Lululemon Athletica

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.