Compared to others, Lululemon Athletica Inc. (LULU) is in a different league with regards to profitability, having net margins of 12.6%. To put some perspective around this, the industry’s average net margin is 6.6%. When looking at valuations, Lululemon Athletica Inc. has a pricey P/E of 39.5x as compared to industry average of 26.09x. Moreover, it trades for 30.23 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 12.39x price/book and 5.48x price/sales. LULU’s ROE is 25.8%, which is also considerably better than the industry’s ROE of 11.89%. It’s also very liquid in the near term, with a current ratio of 3.1. The stock has a debt/capital of 0.
LULU’s 50 day simple moving average (SMA 50) price is $128.84 and its 200-day simple moving average (SMA 200) price is $125.38. The company’s stock currently has a total float of 94.74M shares. Its weekly volatility is hovering around 2.97% and felt 4.33% volatility in price over a month. On the upside, the share price will test short term resistance at around $132.85. On a downside, the stock is likely to find some support, which begins at $129.94. The failure to get near-term support could push it to $128.26.
Separately, it has been reported that multiple insider activity took place at Lululemon Athletica Inc. (LULU). Director Mussafer David M sold 17,935 shares 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 $4,780,865, 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.
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 $165, suggesting that the stock could increase 25.37% in that time frame. The average price target of $157.77 calls for a nearly 19.88% increase in the stock price.
It had seen a positive analyst call from Buckingham Research, which upgraded the stock from Neutral to Buy on January 09. Analysts at Stifel, shed their negative views on December 17 by lifting it fromHold to Buy. The stock won favor of Citigroup analysts who expressed their confidence in it using an upgrade from Neutral to Buy on December 12. Wolfe Research, reiterated their call for Outperform, on December 03. On the other hand, they had set new target price to $176 versus $174.
Lululemon Athletica Inc. (NASDAQ:LULU) reached $16.72B by 10-January-19 in the wake of -3.23% downturn. The shares gained some momentum after bears carried it down to $129.5. The final price for the day of 131.61 was still down from $132.41. The stock remained range bound between $129.5 and $132.41. Trading activity significantly improved as the volume at ready counter increased to 3,396,106 shares versus 3,006,015 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,727,314 shares. The stock is now 75.71% above against its bear-market low of $74.9 on February 06, 2018. It has retreated -25.21% since it’s 52-week high of $164.79 reached in October. Now the market price is up 65.53% on the year and up 8.22% YTD.
Shares of Lululemon Athletica Inc. (LULU) have gained 3.5% since the company’s Apr-19 earnings report. Over the past 12 fiscal quarters, Lululemon Athletica Inc. (NASDAQ:LULU) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 1 quarters (8%), whereas at 2 occasion EPS met analyst expectations. LULU last reported earnings on December 06, 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 $708 million to $779.78 million, which should be compared with $641.39 million generated last year. EPS is seen in a range of $0.6 to $0.77, against the $0.41 reported a year ago.