Shares of Lululemon Athletica inc. (NASDAQ:LULU) are trading down in the early morning following a ratings cut by FBR Capital. The downgrade by FBR analyst Susan Anderson takes the stock from a rating of ‘Market Perform,’ to ‘Underperform’.
Anderson has also reduced her target price on the stock from $55 per share to just $42, as she pointed out that the company was relying heavily on sales and price cuts to move merchandise.
“Our checks have shown significantly higher clearance levels in-store and online over the past few weeks,” she stated.
The stock is down 6.06% or $3.18 after the negative news, hitting $49.32 per share. About 2.56M shares traded hands. LULU has declined 19.93% since April 27, 2015 and is downtrending. It has underperformed by 19.04% the S&P500.
Out of 20 analysts covering Lululemon Athletica Inc. (NASDAQ:LULU), 10 rate it “Buy”, 3 “Sell”, while 7 “Hold”. This means 50% are positive. $69 is the highest target while $42 is the lowest. The $60.35 average target is 22.36% above today’s ($49.32) stock price. Lululemon Athletica Inc. was the topic in 27 analyst reports since August 18, 2015 according to StockzIntelligence Inc. FBR Capital downgraded the stock on November 30 to “Underperform” rating. Citigroup initiated it with “Buy” rating and $69 target price in an October 7 report. UBS maintained the shares of LULU in a report on October 22 with “Neutral” rating. M Partners initiated the firm’s rating on September 17. M Partners has “Buy” rating and $69 price target. Finally, Credit Suisse upgraded the stock to “Outperform” rating in an October 16 report.
The institutional sentiment increased to 1.07 in Q2 2015. Its up 0.30, from 0.77 in 2015Q1. The ratio increased, as 37 funds sold all Lululemon Athletica inc. shares owned while 114 reduced positions. 48 funds bought stakes while 114 increased positions. They now own 124.30 million shares or 5.87% more from 117.41 million shares in 2015Q1.
Advent International Corp Ma holds 31.23% of its portfolio in Lululemon Athletica inc. for 20.11 million shares. Chautauqua Capital Management owns 804,405 shares or 12.73% of their US portfolio. Moreover, Sib Llc has 6.54% invested in the company for 138,281 shares. The New York-based Lomas Capital Management Llc has invested 4.32% in the stock. Bender Robert & Associates, a California-based fund reported 101,416 shares.
Since March 30, 2015, the stock had 1 insider purchase, and 1 insider sale for $458,940 net activity. Poseley Tara bought 4,000 shares worth $214,060. Pitcher Rhoda M. sold 10,000 shares worth $673,000. Stemberg Thomas sold 5,310 shares worth $345,734.
lululemon athletica inc. is a designer and retailer of technical athletic apparel. The company has a market cap of $6.93 billion. The Firm offers a line of apparel and accessories for women, men and female youth. It has 26.34 P/E ratio. The Company’s apparel assortment includes items, such as pants, shorts, tops and jackets designed for healthy lifestyle activities and athletic pursuits, such as yoga, running, general fitness and dance-inspired apparel for female youth.