Lululemon Athletica Inc. (NASDAQ:LULU) is rated as Outperform by analysts at Wolfe Research. The firm was pushed by the stock performance to change their PT view from $177 to $182 on January 15. Analysts at Buckingham Research, shed their negative views on January 09 by lifting it fromNeutral to Buy. The stock won favor of Stifel analysts who expressed their confidence in it using an upgrade from Hold to Buy on December 17. Citigroup analysts came out with bullish views on December 12 when the call was made. They think the stock is now Buy compared to to their prior call for Neutral.
Lululemon Athletica Inc. (LULU) hit an intraday high Tuesday at $157.55. The shares finished at $157.32, after trading as low as $150.57 earlier in the session. It rose 5.03% in recent trade and currently has a stock-market value of $20.69B. Trading activity significantly improved as the volume at ready counter increased to 4,012,431 shares versus 2,015,735 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,396,824 shares. The stock is now 105.38% above against its bear-market low of $76.6 on February 14, 2018. It has retreated -4.75% since it’s 52-week high of $164.79 reached in October. Now the market price is up 103.91% on the year and up 29.36% YTD.
LULU’s 50 day simple moving average (SMA 50) price is $134.18 and its 200-day simple moving average (SMA 200) price is $131.46. The company’s stock currently has a total float of 94.74M shares. Its weekly volatility is hovering around 2.86% and felt 2.6% volatility in price over a month. On the upside, the share price will test short term resistance at around $159.72. On a downside, the stock is likely to find some support, which begins at $152.74. The failure to get near-term support could push it to $148.17.
Separately, it has been reported that multiple insider activity took place at Lululemon Athletica Inc. (LULU). 10% Owner Wilson Dennis J. sold 1,862,316 shares for $4,829,713 in transaction occurred on 2019/01/30. After making this transaction, the 10% Owner owns a direct stake of 272,000,000 shares, worth $760,000,000, as per the last closing price. On 2019/01/15 Wilson Dennis J., 10% Owner at LULU, dumped 444,389 shares at an average price of $140.39 per share. The selling total is valued at $791,000,000.
10% Owner, Wilson Dennis J. had divested 2,552,997 shares for $5,029,713 through a trade on 2019/01/11. Following this activity, the insider holds 340,000,000 shares worth $791,000,000 as of recent close. Wall Street’s most bullish Lululemon Athletica Inc. (NASDAQ:LULU) analysts are predicting the share price to blow past $200 per share during the next 12 months. The current median share price forecast by them is $165.5, suggesting that the stock could increase 5.2% in that time frame. The average price target of $162.9 calls for a nearly 3.55% increase in the stock price.
When looking at valuations, Lululemon Athletica Inc. (LULU) has a pricey P/E of 47.21x as compared to industry average of 41.86x. Moreover, it trades for 35.74 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 14.81x price/book and 6.78x price/sales. Compared to others, Lululemon Athletica Inc. is in a different league with regards to profitability, having net margins of 12.6%. To put some perspective around this, the industry’s average net margin is 8.86%. LULU’s ROE is 25.8%, which is also considerably better than the industry’s ROE of 11.95%. It’s also very liquid in the near term, with a current ratio of 3.1. The stock has a debt/capital of 0.
Shares of Lululemon Athletica Inc. (LULU) have gained 14.% since the company’s last earnings report. Over the past 12 fiscal quarters, Lululemon Athletica Inc. (NASDAQ:LULU) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 1 quarters (8%), whereas at 2 occasion EPS met analyst expectations. LULU last reported earnings on December 06, 2018 when it released Oct-18 results that exceeded expectations. The company raked in $0.75 per share, -90.48% change on the same period last year. That was better than consensus for $0.7. Revenue for the recent quarter stood at $747.66 million, up 21% on last year and above the $737.45 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $715.7 million to $768.35 million, which should be compared with $641.04 million generated last year. EPS is seen in a range of $0.59 to $0.77, against the $0.42 reported a year ago.