On September 14, 2023, investment management company ProShare Advisors LLC revealed that it had increased its position in Lululemon Athletica Inc. The company raised its stake by 10.3% during the first quarter, according to a recent filing with the Securities and Exchange Commission (SEC). This move resulted in ProShare Advisors LLC owning approximately 0.08% of Lululemon Athletica, representing a total of 101,707 shares of the apparel retailer’s stock. These additional shares were acquired at a value of $37,041,000.
Lululemon Athletica recently announced its earnings results for the quarter ending on August 31st. During this period, the apparel retailer reported earnings per share (EPS) of $2.68, surpassing market expectations by $0.14. The net margin for the company stood at 11.40%, while the return on equity was reported as 44.47%. Moreover, Lululemon Athletica generated revenue amounting to $2.20 billion during this quarter, exceeding analysts’ estimates of $2.17 billion. This represented a year-on-year increase in quarterly revenue of 17.8%. In the same quarter last year, the company posted EPS of $2.20.
Analysts have shared their insights on Lululemon Athletica and its performance in recent reports. JPMorgan Chase & Co., Barclays, Morgan Stanley, BMO Capital Markets and Guggenheim have all published research notes with varying rating recommendations and price targets for the stock.
JPMorgan Chase & Co., for example, upgraded their price target from $487 to $489 and gave Lululemon Athletica an “overweight” rating on September 1st. Similarly, Barclays raised its price objective from $430 to $480 and also gave the company an “overweight” rating on the same date. Morgan Stanley increased its price objective from $424 to $437 and maintained an “overweight” rating for the stock. BMO Capital Markets, however, raised their price target from $355 to $376, issuing a “market perform” rating. Finally, Guggenheim reiterated its “buy” rating and set a price target of $440.
It is important to note that while there is one analyst who has rated Lululemon Athletica as a sell, four have assigned a hold rating, twenty have assigned a buy rating, and one has issued a strong buy rating for the stock. According to data from Bloomberg.com, the company currently holds an average rating of “Moderate Buy,” with an average price target of $438.62.
These recent developments in Lululemon Athletica’s position and earnings performance indicate positive sentiment from both institutional investors and analysts. With consistent revenue growth and surpassing market expectations in earnings, the company appears to be on track for continued success in the apparel retail industry throughout 2023.
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Notable Institutional Investor Activities and Insider Transactions Drive Interest in Lululemon Athletica Stock
As of September 14, 2023, Lululemon Athletica Inc., the popular athletic apparel retailer, has seen notable activity from various institutional investors regarding their shares in the company. PFG Private Wealth Management LLC, for instance, has increased its position in Lululemon Athletica by 10.9% during the first quarter. The firm now holds 286 shares of the company’s stock worth $104,000 after acquiring an additional 28 shares.
Similarly, Inscription Capital LLC has also boosted its position in Lululemon Athletica by 1.8% during the same period. The firm now owns 1,612 shares of the company’s stock worth $587,000 after adding an additional 29 shares to their portfolio. Furthermore, Addison Advisors LLC raised its holdings in Lululemon Athletica by 8.9%, owning 356 shares valued at $130,000 after purchasing an extra 29 shares during the last quarter.
KRS Capital Management LLC and Yousif Capital Management LLC have also increased their stakes in Lululemon Athletica during the first quarter by 1.7% and 0.8%, respectively. KRS Capital Management now owns 1,803 shares valued at $657,000 while Yousif Capital Management holds a total of 3,812 shares valued at $1,388,000.
It is important to note that institutional investors collectively own a significant portion of Lululemon Athletica’s stock with a commanding figure of approximately 91.50%.
In other news concerning the company’s insiders’ activities,
Michelle Sun Choe – an insider – recently sold a substantial amount of stocks in Lululemon Athletica Inc., namely 27,981 shares on Wednesday, September 6th at an average price of $401 per share. This resulted in a total transaction value of $11,220,381. Following the completion of this sale, Choe now directly owns 3,892 shares of the company’s stock with an approximate value of $1,560,692. This particular transaction was duly disclosed in a legal filing with the SEC and can be accessed on the SEC website.
It is notable that insiders collectively own approximately 0.54% of Lululemon Athletica’s stock.
On Thursday, September 14th, the shares of Lululemon Athletica (NASDAQ:LULU) opened at $388.97. The firm currently has a 50-day moving average price of $382.00 and a 200-day moving average price of $363.48. With a market capitalization reaching $49.42 billion and a price-to-earnings ratio standing at 49.24, Lululemon Athletica remains an influential player in the industry.
As a result of its well-established position within the market, Lululemon Athletica has experienced fluctuations within its stock over time. Its twelve-month low was recorded at $277.50 while its twelve-month high stood at $406.94.
The recent activities involving institutional investors and insider transactions show steady interest and movement in Lululemon Athletica Inc.’s stock during the first quarter of this year until present day. Investors will undoubtedly continue to monitor such developments as they navigate their investment strategies moving forward in light of these dynamics concerning Lululemon Athletica and its surrounding market environment.
