Morgan Stanley Cuts Lululemon Athletica (NASDAQ:LULU) Price Target to $329.00

Lululemon Athletica (NASDAQ:LULU) had its price objective cut by Morgan Stanley from $404.00 to $329.00 in a report released on Monday morning, Benzinga reports. They currently have an overweight rating on the apparel retailer’s stock.

A number of other brokerages also recently commented on LULU. Jefferies Financial Group restated an underperform rating and issued a $220.00 target price on shares of Lululemon Athletica in a research note on Thursday, July 25th. Robert W. Baird reduced their price objective on Lululemon Athletica from $470.00 to $350.00 and set an outperform rating on the stock in a report on Wednesday, July 31st. BTIG Research assumed coverage on Lululemon Athletica in a report on Wednesday, May 8th. They issued a buy rating and a $425.00 target price for the company. BMO Capital Markets cut their price target on Lululemon Athletica from $420.00 to $384.00 and set a market perform rating on the stock in a research note on Thursday, June 6th. Finally, Piper Sandler reaffirmed a neutral rating and issued a $250.00 price objective on shares of Lululemon Athletica in a research note on Friday, August 23rd. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating and twenty-one have given a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of Moderate Buy and an average target price of $375.00.

Lululemon Athletica Price Performance

Lululemon Athletica stock opened at $258.83 on Monday. The company’s 50-day moving average is $274.73 and its 200 day moving average is $342.43. Lululemon Athletica has a 1-year low of $226.01 and a 1-year high of $516.39. The firm has a market capitalization of $32.35 billion, a P/E ratio of 20.76, a price-to-earnings-growth ratio of 1.25 and a beta of 1.26.

Lululemon Athletica (NASDAQ:LULU) last released its earnings results on Wednesday, June 5th. The apparel retailer reported $2.54 earnings per share for the quarter, topping the consensus estimate of $2.38 by $0.16. The business had revenue of $2.21 billion during the quarter, compared to the consensus estimate of $2.20 billion. Lululemon Athletica had a return on equity of 42.64% and a net margin of 16.09%. The business’s revenue for the quarter was up 10.4% compared to the same quarter last year. During the same period last year, the company earned $2.28 earnings per share. Research analysts anticipate that Lululemon Athletica will post 14.22 earnings per share for the current fiscal year.

Lululemon Athletica announced that its board has approved a stock buyback program on Wednesday, June 5th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the apparel retailer to purchase up to 2.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Lululemon Athletica

Hedge funds have recently made changes to their positions in the company. Value Star Asset Management Hong Kong Ltd grew its stake in Lululemon Athletica by 19,890.3% during the 2nd quarter. Value Star Asset Management Hong Kong Ltd now owns 4,653,746 shares of the apparel retailer’s stock valued at $1,390,074,000 after purchasing an additional 4,630,466 shares during the last quarter. Vanguard Group Inc. boosted its position in Lululemon Athletica by 32.3% in the fourth quarter. Vanguard Group Inc. now owns 9,692,969 shares of the apparel retailer’s stock valued at $4,955,918,000 after buying an additional 2,369,119 shares during the last quarter. Norges Bank acquired a new position in Lululemon Athletica in the 4th quarter worth approximately $236,378,000. Marshall Wace LLP raised its position in Lululemon Athletica by 359.4% during the 2nd quarter. Marshall Wace LLP now owns 204,500 shares of the apparel retailer’s stock worth $61,084,000 after buying an additional 283,344 shares during the last quarter. Finally, Northern Trust Corp lifted its stake in Lululemon Athletica by 32.7% during the 4th quarter. Northern Trust Corp now owns 1,046,011 shares of the apparel retailer’s stock valued at $534,815,000 after acquiring an additional 257,944 shares during the period. 85.20% of the stock is owned by institutional investors and hedge funds.

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.