The stock of Lululemon Athletica Inc. (NASDAQ:LULU) decreased by -$3.42 on Friday to finish at $381.13, down -0.89 percent. The last five days have seen an average of 791,580 shares of common stock traded. 17 times new highs were reached in the current year, with a gain of $60.75. The average number of shares traded over the last 20 days was 1,051,585, while the average volume over the last 50 days totaled 1,448,236.
LULU stock appreciated 0.42% since last month. On 07/27/23, the company’s shares reached a one-month low of $368.76. The stock touched a high of $394.64 on 08/10/23, after rallying from a low of $277.50 in 52 weeks. The price of LULU stock has risen by 18.96% or $60.75 this year, reaching a new high 17 times. Still, the stock price is down -3.42% from the 52-week high.
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Insider Transactions
LULU stock investors should be aware that Lululemon Athletica Inc. (LULU) stock had its last reported insider trading activity 136 days ago on Mar 31. On Mar 31, Pres Americas & Global Guest BURGOYNE CELESTE sold 17,343 shares at $362.00 each. This transaction resulted in the insider making $6,278,170. On Sep 12, Henry Kathryn sold 189 shares at a price of US$351.80. After the transaction, the insider now owns 4,102 shares.
Valuation Metrics
Lululemon Athletica Inc. (LULU) has a trailing price-to-earnings (P/E) ratio of 50.99. Beta for the stock is 1.38. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 5.52, the price-to-book (PB) ratio of 14.61, and the price-to-cash flow ratio of 79.35.
Financial Health
For the three months ended April 29, Lululemon Athletica Inc.’s quick ratio was 1.20, while its current ratio was 2.40, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 56.20% percent. Lululemon Athletica Inc.’s EBITDA margin for the year ended April 29 was 24.97%, whereas its operating margin stood at 17.30% for the same period. Based on annual data, it had gross profit of $4.49 billion and revenue of $8.11 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. LULU’s return on assets (ROA) during the last 12 months has been 17.80%. There was a 27.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 30.90%.
Earnings Surprise
According to Lululemon Athletica Inc.’s quarterly financial report for the quarter that ended April 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $2.0 billion, while revenues rose by 19.36% to $2.77 billion. It was predicted that Lululemon Athletica Inc.’s quarterly earnings would be $2.28, but it ended up being $1.98, beating the consensus by 15.20%. EBITDA was $485.53 million for the quarter. At the end of Lululemon Athletica Inc.’s most recent quarter ended April 29, its liabilities totaled 2.25 billion, while its total debt was $1.1 billion. Equity owned by shareholders amounts to $127.06 million.
Technical Picture
Here’s a quick look at Lululemon Athletica Inc.’s (LULU) price momentum from a technical perspective. As of 11 August, the RSI 9-day stood at 51.06%, suggesting the stock is Neutral, with a 17.34% historical volatility rate.
The stochastic %K and %D were 59.32% and 59.87% respectively, while the average true range (ATR) was 8.21. Based on the 14-day stochastic reading of 47.80%, the RSI (14) reading is 51.96%. On the 9-day MACD Oscillator, the stock is at 1.42, and the 14-day reading is at 2.70.
Analyst Ratings
Analysts have assigned Lululemon Athletica Inc. (LULU) an Overweight rating. LULU is a stock that is recommended for selling by 2 brokerage firms, while 5 companies recommend holding. The stock is underweighted by 2 analysts. Among the analysts who rate the stock, 4 rates it overweight and 20 others recommend it as a buy.
What is LULU’s price target for the next 12 months?
The current consensus forecast for the stock is between $250.00 and $531.00, with a median target price of $430.00. In analyzing these forecasts, the average price target given by analysts for Lululemon Athletica Inc. (LULU) is $420.02.
