Director Mussafer David M sold 17,935 shares in Lululemon Athletica Inc. (NASDAQ:LULU) for $36,326 in transaction occurred on 2018/06/07. After making this transaction, the Director owns a direct stake of 2,170,135 shares, worth $4,774,689, as per the last closing price. On 2018/06/07 Advent International Corp/Ma, 10% Owner at LULU, dumped 10,000,000 shares at an average price of $121 per share. The selling total is valued at $1,330,000,000.
Separately, it had been reported that some other LULU insiders also took part of the insider trading activity. 10% Owner, Advent International Corp/Ma had divested 10,000,000 shares for $10,105,279 through a trade on 2018/06/07. Following this activity, the insider holds 1,210,000,000 shares worth $1,330,000,000 as of recent close. Wall Street’s most bullish Lululemon Athletica Inc. (NASDAQ:LULU) analysts are predicting the share price to blow past $200 per share during the next 12 months. The current median share price forecast by them is $164, suggesting that the stock could increase 24.77% in that time frame. The average price target of $161.1 calls for a nearly 22.57% increase in the stock price.
Lululemon Athletica Inc. (NASDAQ:LULU) reaches $16.99B market cap as shares retreated -1.63% in recent session. It closed at $131.44, after slipping as low as $126.5576 through the day. The shares were pushed to an intraday high Thursday at $134.71. Trading activity significantly improved as the volume at ready counter increased to 5,316,388 shares versus 2,374,880 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,013,303 shares. The stock is now 101.29% above against its bear-market low of $65.3 on December 07, 2017. It has retreated -25.37% since it’s 52-week high of $164.79 reached in October. Now the market price is up 98.07% on the year and up 67.25% YTD.
LULU’s 50 day simple moving average (SMA 50) price is $140.73 and its 200-day simple moving average (SMA 200) price is $120.66. The company’s stock currently has a total float of 94.75M shares. Its weekly volatility is hovering around 4.63% and felt 3.87% volatility in price over a month. On the upside, the share price will test short term resistance at around $135.25. On a downside, the stock is likely to find some support, which begins at $127.1. The failure to get near-term support could push it to $122.75.
It had seen a change in price target from analysts at Wolfe Research, who reiterated the stock at Outperform on December 03 but moved PT from $174 to $176. Analysts at Canaccord Genuity, shed their negative views on October 24 by lifting it fromHold to Buy. The stock won favor of Wedbush analysts who expressed their confidence in it using an upgrade from Neutral to Outperform on October 15. B. Riley FBR, reiterated their call for Neutral, on October 02. On the other hand, they had set new target price to $155 versus $141.
When looking at valuations, Lululemon Athletica Inc. (LULU) has a pricey P/E of 43.54x as compared to industry average of 40.11x. Moreover, it trades for 30.93 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 13.34x price/book and 5.82x price/sales. Compared to others, Lululemon Athletica Inc. is in a different league with regards to profitability, having net margins of 12%. To put some perspective around this, the industry’s average net margin is 9.18%. LULU’s ROE is 23.4%, which is also considerably better than the industry’s ROE of 20.42%. It’s also very liquid in the near term, with a current ratio of 2.9. The stock has a debt/capital of 0.08.
Shares of Lululemon Athletica Inc. (LULU) have dropped -2.5% since the company’s Jan-18 earnings report. Over the past 12 fiscal quarters, Lululemon Athletica Inc. (NASDAQ:LULU) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 2 quarters (16%), whereas at 2 occasion EPS met analyst expectations. LULU last reported earnings on August 30, 2018 when it released Jul-18 results that exceeded expectations. The company raked in $0.71 per share, -98.38% change on the same period last year. That was better than consensus for $0.49. Revenue for the recent quarter stood at $723.5 million, up 25% on last year and above the $667.94 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $891.64 million to $943.33 million, which should be compared with $0 generated last year.