Royal London Asset Management Increases Stake in Lululemon Athletica

Royal London Asset Management Ltd. has raised its investment in Lululemon Athletica Inc. (NASDAQ:LULU) by 2.4% during the third quarter, as reported in its latest filing with the Securities and Exchange Commission. After acquiring an additional 1,531 shares during this timeframe, the firm now holds a total of 64,716 shares of the athletic apparel retailer.

At the close of the latest quarter, Royal London Asset Management's stake in Lululemon is valued at approximately $17,561,000, representing about 0.05% of the company's overall equity.

Increased Holdings by Other Funds

Other investment firms have also adjusted their positions in Lululemon. For instance, Larson Financial Group LLC grew its stake by a remarkable 78.2% in the second quarter, now owning 98 shares valued at $29,000 after buying 43 additional shares. Meanwhile, Paladin Wealth LLC established a new position in Lululemon during the third quarter, also valued near $29,000.

JFS Wealth Advisors LLC significantly enhanced its holdings by 127.5% during the third quarter, totaling 116 shares worth around $31,000 after increasing its ownership by 65 shares. Additionally, Ridgewood Investments LLC took a new position earlier in the second quarter, approximating at $33,000, while Dnca Finance acquired shares valued at $34,000 in the same period. Overall, hedge funds and institutional investors collectively own about 85.20% of Lululemon's stock.

Insider Transactions

In related news, insider Nicole Neuburger sold 486 shares of Lululemon on September 26th. The shares were sold for an average price of $269.59, culminating in a total transaction value of $131,020.74. Post-sale, Neuburger retains ownership of 6,198 shares, estimated to be worth around $1,670,918.82, reflecting a decrease in her stake by 7.27%. Disclosure of this transaction is available through the SEC website, noting that insiders now account for 0.48% of the total shares.

Recent Stock Performance

As of Friday, Lululemon's stock opened at $399.60. Over the past year, the share price has experienced a low of $226.01 and a high of $516.39. Currently, the stock's fifty-day moving average rests at $303.40, with a 200-day moving average at $287.81. Lululemon Athletica has a market capitalization of $49.06 billion, a price-to-earnings ratio of 30.88, a price-to-earnings-growth ratio of 2.49, and a beta of 1.23.

In its latest quarterly earnings report released on December 5th, Lululemon announced earnings per share of $2.87, exceeding analysts' expectations of $2.69 by $0.18. The reported revenue for the quarter was $2.40 billion, surpassing predictions of $2.36 billion. Lululemon's return on equity stood at 42.59%, with a net margin of 16.34%. Compared to the same quarter last year, revenue increased by 9.1%.

Analyst Insights

Several analysts have recently assessed Lululemon stock. TD Cowen adjusted its target price for Lululemon from $382.00 to $383.00. In a separate note, Needham & Company LLC maintained a "hold" rating. Piper Sandler raised their price target from $260.00 to $340.00, also assigning a "neutral" rating. UBS Group increased their price objective from $315.00 to $360.00 while keeping a "neutral" rating. Robert W. Baird upgraded its target from $380.00 to $440.00, giving an "outperform" rating. Presently, two analysts rate the stock as a sell, ten give it a hold, whereas nineteen have a buy recommendation. Overall, MarketBeat.com indicates a consensus rating of "Moderate Buy" with an average price target of $379.52.

Company Overview

Lululemon Athletica Inc. specializes in designing, distributing, and retailing athletic apparel and accessories for both men and women under the Lululemon brand. The company offers various products such as tops, bottoms, and jackets suited for activities like yoga, running, and training, along with fitness-related accessories.

Investment Consideration

Before investing in Lululemon Athletica, individuals may want to evaluate its position in comparison to other potentially advantageous stock options. While Lululemon holds a "Moderate Buy" rating among analysts, some top research analysts suggest exploring alternative stocks that may yield better returns.

Investment, Management, Stake