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

Lululemon Athletica Inc. (NASDAQ:LULU)’s share 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 changing hands.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Wells Fargo & Company lowered 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 report on Thursday, June 6th. Bank of America upped their target price on shares of Lululemon Athletica from $430.00 to $440.00 and gave the stock a “buy” rating in a report on Thursday, June 6th. Telsey Advisory Group decreased their price objective on shares of Lululemon Athletica from $550.00 to $470.00 and set an “outperform” rating on the stock in a report on Thursday, June 6th. Oppenheimer reissued an “outperform” rating and set a $445.00 price objective on shares of Lululemon Athletica in a report on Thursday, June 6th. Finally, Stifel Nicolaus increased their price objective on shares of Lululemon Athletica from $410.00 to $416.00 and gave the stock a “buy” rating in a report on Thursday, June 6th. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and twenty-four have issued a buy rating to the company’s stock. Based on data from MarketBeat, Lululemon Athletica currently has an average rating of “Moderate Buy” and an average target price of $433.06.

Lululemon Athletica Price Performance

The stock has a 50-day simple moving average of $328.92 and a 200-day simple moving average of $410.30. The stock has a market cap of $37.58 billion, a P/E ratio of 24.18, a PEG ratio of 1.52 and a beta of 1.27.

Lululemon Athletica (NASDAQ:LULU) last released its earnings results on Wednesday, June 5th. The apparel retailer reported $2.54 earnings per share (EPS) 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 firm had revenue of $2.21 billion for the quarter, compared to analysts’ expectations of $2.20 billion. During the same quarter in the previous year, the business posted $2.28 earnings per share. The business’s revenue for the quarter was up 10.4% on a year-over-year basis. As a group, sell-side analysts forecast that Lululemon Athletica Inc. will post 14.29 earnings per share for the current year.

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

Institutional Trading of Lululemon Athletica

Hedge funds and other institutional investors have recently made changes to their positions in the company. Valley National Advisers Inc. boosted its holdings in Lululemon Athletica by 600.0% in the fourth quarter. Valley National Advisers Inc. now owns 49 shares of the apparel retailer’s stock valued at $25,000 after acquiring an additional 42 shares during the last quarter. Tidemark LLC bought a new stake in Lululemon Athletica in the fourth quarter valued at approximately $26,000. Scarborough Advisors LLC bought a new stake in Lululemon Athletica in the fourth quarter valued at approximately $26,000. Benjamin Edwards Inc. boosted its holdings in Lululemon Athletica by 176.0% in the first quarter. Benjamin Edwards Inc. now owns 69 shares of the apparel retailer’s stock valued at $27,000 after acquiring an additional 44 shares during the last quarter. Finally, Riverview Trust Co acquired a new position in Lululemon Athletica in the first quarter valued at approximately $29,000. 85.20% of the stock is currently owned by institutional investors.

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.