Lululemon Athletica (NASDAQ:LULU) Shares Gap Up Following Earnings Beat

Lululemon Athletica Inc. (NASDAQ:LULUGet Free Report)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $308.27, but opened at $337.01. Lululemon Athletica shares last traded at $316.63, with a volume of 2,982,991 shares changing hands.

The apparel retailer reported $2.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.38 by $0.16. The company had revenue of $2.21 billion during the quarter, compared to analysts’ expectations of $2.20 billion. Lululemon Athletica had a net margin of 16.11% and a return on equity of 44.41%. Lululemon Athletica’s quarterly revenue was up 10.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.28 earnings per share.

Analyst Ratings Changes

A number of brokerages have weighed in on LULU. The Goldman Sachs Group dropped their target price on shares of Lululemon Athletica from $521.00 to $463.00 and set a “buy” rating for the company in a research note on Friday, May 24th. TD Cowen upped their price objective on Lululemon Athletica from $437.00 to $447.00 and gave the stock a “buy” rating in a report on Thursday. Citigroup lowered their target price on Lululemon Athletica from $500.00 to $415.00 and set a “buy” rating for the company in a research note on Wednesday, May 29th. UBS Group cut their price target on Lululemon Athletica from $475.00 to $385.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 22nd. Finally, Barclays dropped their price objective on Lululemon Athletica from $395.00 to $338.00 and set an “equal weight” rating for the company in a report on Thursday. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and twenty-five have issued a buy rating to the company. According to data from MarketBeat.com, Lululemon Athletica presently has a consensus rating of “Moderate Buy” and a consensus target price of $437.55.

Check Out Our Latest Analysis on Lululemon Athletica

Insiders Place Their Bets

In other news, Director Martha A. M. Morfitt purchased 700 shares of the business’s stock in a transaction dated Tuesday, March 26th. The shares were bought at an average cost of $389.29 per share, for a total transaction of $272,503.00. Following the completion of the acquisition, the director now directly owns 500 shares in the company, valued at approximately $194,645. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.48% of the company’s stock.

Institutional Trading of Lululemon Athletica

A number of hedge funds and other institutional investors have recently made changes to their positions in LULU. Valley National Advisers Inc. grew its position 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 purchasing an additional 42 shares in the last quarter. Tidemark LLC acquired a new stake in shares of Lululemon Athletica in the fourth quarter valued at about $26,000. Scarborough Advisors LLC acquired a new stake in shares of Lululemon Athletica in the fourth quarter valued at about $26,000. Morton Brown Family Wealth LLC bought a new stake in Lululemon Athletica during the fourth quarter worth about $31,000. Finally, Richardson Financial Services Inc. acquired a new position in Lululemon Athletica during the fourth quarter valued at approximately $31,000. 85.20% of the stock is currently owned by institutional investors and hedge funds.

Lululemon Athletica Stock Up 4.8 %

The stock has a market capitalization of $40.71 billion, a P/E ratio of 26.46, a P/E/G ratio of 1.46 and a beta of 1.27. The stock has a 50 day simple moving average of $341.94 and a two-hundred day simple moving average of $423.64.

Lululemon Athletica Company Profile

(Get Free Report)

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.

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