KGI Securities Downgrades Lululemon Athletica (NASDAQ:LULU) to Neutral

Lululemon Athletica (NASDAQ:LULUGet Rating) was downgraded by stock analysts at KGI Securities from an “outperform” rating to a “neutral” rating in a research report issued to clients and investors on Monday, The Fly reports.

Several other brokerages have also commented on LULU. StockNews.com began coverage on shares of Lululemon Athletica in a research note on Thursday, March 31st. They issued a “hold” rating on the stock. TheStreet upgraded shares of Lululemon Athletica from a “c+” rating to a “b” rating in a research note on Monday, April 11th. Zacks Investment Research restated a “hold” rating on shares of Lululemon Athletica in a research report on Thursday, March 17th. Sanford C. Bernstein started coverage on shares of Lululemon Athletica in a research report on Monday, March 14th. They set an “underperform” rating and a $260.00 target price on the stock. Finally, Wedbush started coverage on shares of Lululemon Athletica in a research report on Thursday, April 28th. They set an “outperform” rating and a $430.00 target price on the stock. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and nineteen have issued a buy rating to the stock. Based on data from MarketBeat.com, Lululemon Athletica presently has a consensus rating of “Buy” and a consensus target price of $442.88.

LULU stock opened at $257.51 on Monday. The company’s 50 day moving average price is $340.08 and its 200 day moving average price is $359.48. Lululemon Athletica has a fifty-two week low of $253.07 and a fifty-two week high of $485.83. The firm has a market capitalization of $32.94 billion, a price-to-earnings ratio of 34.33, a PEG ratio of 1.45 and a beta of 1.29.

Lululemon Athletica (NASDAQ:LULUGet Rating) last announced its quarterly earnings results on Tuesday, March 29th. The apparel retailer reported $3.37 EPS for the quarter, beating the consensus estimate of $3.27 by $0.10. The company had revenue of $2.13 billion for the quarter, compared to analyst estimates of $2.13 billion. Lululemon Athletica had a net margin of 15.59% and a return on equity of 37.92%. The firm’s revenue was up 23.1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.58 earnings per share. As a group, sell-side analysts forecast that Lululemon Athletica will post 9.34 earnings per share for the current fiscal year.

Lululemon Athletica declared that its Board of Directors has authorized a share repurchase plan on Tuesday, March 29th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the apparel retailer to reacquire up to 2.1% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Several hedge funds have recently made changes to their positions in the company. BlackRock Inc. increased its position in Lululemon Athletica by 1.3% during the 1st quarter. BlackRock Inc. now owns 6,610,763 shares of the apparel retailer’s stock worth $2,414,447,000 after purchasing an additional 87,610 shares in the last quarter. WCM Investment Management LLC grew its holdings in Lululemon Athletica by 0.8% in the 4th quarter. WCM Investment Management LLC now owns 5,521,523 shares of the apparel retailer’s stock valued at $2,161,400,000 after buying an additional 46,252 shares during the period. Jennison Associates LLC grew its holdings in Lululemon Athletica by 2.8% in the 1st quarter. Jennison Associates LLC now owns 3,859,066 shares of the apparel retailer’s stock valued at $1,409,447,000 after buying an additional 106,577 shares during the period. Wellington Management Group LLP grew its holdings in Lululemon Athletica by 21.8% in the 1st quarter. Wellington Management Group LLP now owns 2,824,943 shares of the apparel retailer’s stock valued at $1,031,753,000 after buying an additional 505,401 shares during the period. Finally, State Street Corp grew its holdings in Lululemon Athletica by 1.4% in the 4th quarter. State Street Corp now owns 2,824,073 shares of the apparel retailer’s stock valued at $1,105,483,000 after buying an additional 39,700 shares during the period. Institutional investors and hedge funds own 85.48% of the company’s stock.

Lululemon Athletica Company Profile (Get Rating)

lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women and men. It operates in two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training, as well as other sweaty pursuits.

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