Citigroup Downgrades Lululemon Athletica (NASDAQ:LULU) to Neutral

Lululemon Athletica (NASDAQ:LULU) was downgraded by Citigroup from a “buy” rating to a “neutral” rating in a report issued on Thursday, Marketbeat Ratings reports. They currently have a $300.00 target price on the apparel retailer’s stock, down from their previous target price of $415.00. Citigroup’s target price points to a potential upside of 18.34% from the stock’s current price.

A number of other research analysts also recently commented on LULU. Sanford C. Bernstein increased their price target on shares of Lululemon Athletica from $376.00 to $382.00 and gave the company a “market perform” rating in a report on Friday, June 7th. Wells Fargo & Company lowered their price target on shares of Lululemon Athletica from $425.00 to $350.00 and set an “equal weight” rating for the company in a report on Thursday, June 6th. Truist Financial decreased their price objective on shares of Lululemon Athletica from $498.00 to $415.00 and set a “buy” rating for the company in a research note on Monday, June 3rd. BMO Capital Markets decreased their price objective on shares of Lululemon Athletica from $420.00 to $384.00 and set a “market perform” rating for the company in a research note on Thursday, June 6th. Finally, Wedbush raised their price objective on shares of Lululemon Athletica from $397.00 to $400.00 and gave the stock an “outperform” rating in a research note on Thursday, June 6th. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and twenty-three have assigned a buy rating to the company’s stock. According to data from MarketBeat, Lululemon Athletica has an average rating of “Moderate Buy” and an average price target of $416.26.

Lululemon Athletica Stock Up 2.5 %

LULU opened at $253.50 on Thursday. The firm has a 50-day simple moving average of $300.18 and a two-hundred day simple moving average of $378.08. Lululemon Athletica has a 52 week low of $245.59 and a 52 week high of $516.39. The company has a market capitalization of $31.69 billion, a PE ratio of 20.33, a price-to-earnings-growth ratio of 1.35 and a beta of 1.26.

Lululemon Athletica (NASDAQ:LULU) last released its quarterly earnings data on Wednesday, June 5th. The apparel retailer reported $2.54 EPS for the quarter, beating the consensus estimate of $2.38 by $0.16. Lululemon Athletica had a net margin of 16.09% and a return on equity of 42.64%. The business had revenue of $2.21 billion during the quarter, compared to the consensus estimate of $2.20 billion. During the same quarter in the prior year, the firm earned $2.28 EPS. The business’s revenue was up 10.4% on a year-over-year basis. As a group, sell-side analysts expect that Lululemon Athletica will post 14.29 earnings per share for the current year.

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

Hedge Funds Weigh In On Lululemon Athletica

Institutional investors and hedge funds have recently bought and sold shares of the company. Valley National Advisers Inc. grew 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 worth $25,000 after purchasing an additional 42 shares during the last quarter. Tidemark LLC purchased a new position in Lululemon Athletica in the fourth quarter worth $26,000. Scarborough Advisors LLC purchased a new position in Lululemon Athletica in the fourth quarter worth $26,000. Benjamin Edwards Inc. lifted its stake in shares of Lululemon Athletica by 176.0% during the first quarter. Benjamin Edwards Inc. now owns 69 shares of the apparel retailer’s stock worth $27,000 after buying an additional 44 shares during the period. Finally, Riverview Trust Co acquired a new stake in shares of Lululemon Athletica during the first quarter worth $29,000. 85.20% of the stock is owned by hedge funds and other institutional investors.

About Lululemon Athletica

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.