Shares of lululemon athletica inc. (NASDAQ:LULU) are currently holding an average recommendation of “Hold,” according to a recent report from MarketBeat Ratings. Thirty-five analysts are covering the athletic apparel company, with one analyst issuing a sell recommendation, thirty assigning a hold recommendation, two offering a buy recommendation, and another two providing a strong buy recommendation. The average 12-month price target set by brokerages stands at $227.05.
Several equities analysts have recently commented on lululemon’s stock. On February 5, 2023, Weiss Ratings upgraded the company from a “sell (D+)” to a “hold (C-)” rating. In contrast, BNP Paribas Exane reduced its price target from $230.00 to $206.00 and maintained a “neutral” rating in a report dated January 23, 2023. Similarly, Stifel Nicolaus reiterated a “hold” rating with a price target of $210.00 on December 30, 2022. UBS Group also set a target price of $206.00 on December 31, 2022, while Jefferies Financial Group lowered its target from $200.00 to $185.00 on January 30, 2023.
Institutional Investors Take Positions
Institutional investors have been actively adjusting their stakes in lululemon athletica. Notably, Vanguard Group Inc. increased its stake by 3.9% during the third quarter, acquiring an additional 521,915 shares, bringing its total ownership to 13,782,917 shares valued at approximately $2.45 billion. Geode Capital Management LLC also grew its position by 2.4% in the fourth quarter, now holding 3,049,911 shares valued at around $631.5 million.
Another significant player, Invesco Ltd., increased its holdings by 28.7% in the third quarter, obtaining 2,200,552 shares worth about $391.5 million. Additionally, Flossbach Von Storch SE raised its stake by 17.7%, acquiring 290,614 shares valued at roughly $343.6 million. Furthermore, Norges Bank purchased a new stake in the fourth quarter worth about $362.6 million. Institutional investors collectively own around 85.2% of lululemon’s stock.
Stock Performance and Earnings Report
On Thursday, shares of lululemon traded down by $5.75 to reach $170.12. The trading volume was 1,194,610 shares, which is lower than the average volume of 2,699,755 shares. Over the past year, the stock has experienced a low of $159.25 and a high of $400.01. The company has a market capitalization of $19.96 billion, a price-to-earnings (P/E) ratio of 11.78, and a price-to-earnings-growth ratio of 11.41.
In its most recent quarterly earnings report announced on December 11, 2023, lululemon athletica reported earnings per share of $2.59, surpassing analysts’ expectations of $2.22 by $0.37. The company achieved a net margin of 15.72% and a return on equity of 39.78%. Revenue for the quarter was reported at $2.57 billion, exceeding analysts’ forecasts of $2.48 billion. This revenue reflects a 7.1% increase compared to the same quarter last year.
Looking ahead, lululemon has provided guidance for the fiscal year 2025, projecting earnings per share between $12.92 and $13.02, with fourth-quarter guidance set at $4.66 to $4.76. Analysts predict an average earnings per share of $14.36 for the current fiscal year.
Founded in 1998, lululemon athletica inc. is renowned for its design-focused approach to athletic apparel, offering a range of performance-oriented clothing, footwear, and accessories. The company specializes in technical apparel for activities such as yoga, running, and training, emphasizing fabric innovation and lifestyle styling. Products are developed in-house and manufactured through a network of third-party producers.
