The stock of Lululemon Athletica Inc. (NASDAQ:LULU) is now priced at $391.16 and the shares are 15.49 points up or 4.12% higher compared to its previous closing price of $375.67. The stock had 1.364 million contracts set over the past session. LULU shares’ daily volume is compared to its average trading volume at 1.867 million shares. However, it has a float of 115 million and although its performance was 3.34% over the week, it’s one to watch. Analysts have given the LULU stock a yearly average price target of $320.74 per share. It means the stock’s downside potential is -18% with the LULU share price recently placing at $373.56 to $391.38. However, some brokerage firms have priced the stock below the average, including one that has called $192.
The shorts are climbing into the Lululemon Athletica Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the LULU shares have risen. Short interest in the stock represents just 3.18% of its float, but the volume has raised by 182632. The volume of shorted shares rised to 3.669 million from 3.487 million shares over the last two weeks. The average intraday trading volume has been 1.314 million shares, which means that days to cover moved to roughly 2.791881.
In the last trading session, Lululemon Athletica Inc. (NASDAQ:LULU) raised by $12.66 over the week and gained $62.95 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $391.38. The stock recorded its established 52-week high on 09/01/20.
Since 03/18/20, the stock has traded to a low of $128.85 at 203.59%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.14. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Lululemon Athletica Inc.’s two-week RSI is 76.9. This suggests that the stock is oversold at the moment and that LULU shares’ price movement remains not stable. The stochastic readings are equally revealing at 89.35% meaning the LULU share price is currently in oversold territory.
The technical chart shows that the LULU stock will likely settle at between $397.17 and $403.19 per share. However, if the stock dips below $379.35, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $367.55.
Currently, the stock is trading in the green of MACD, with a reading of 4.7. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Exane BNP Paribas cut their recommendation for LULU from Outperform to Neutral in August 27 review while maintai their target price of $352. Susquehanna analysts see the stock as a Positive, but they also raised the share’s target price from $360 to $426 in a flash note released to investors on August 24. Needham analysts see the stock as Buy. Nonetheless, the analysts revised the share prices up on June 12, placing it at $345 from $225.
The average rating for the LULU equity is 2.06 and is currently gathering a bullish momentum. Of 35 analysts tracking Lululemon Athletica Inc. polled by Reuters, 13 rated LULU as a hold. The remaining 22 analysts were split evenly. However, the split wasn’t equal as a majority (22) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the LULU stock price is 62.07X ahead of its 12-month Consensus earnings per share estimates.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Lululemon Athletica Inc. (NASDAQ:LULU) will increase by about 27.2%, which will see them reach $829 million. The company’s full-year revenues are, however, expected to diminish by about 0%, down from $3980 million to $3980 million. LULU’s expected adjusted earnings should drop almost -46.88% to end up at $0.51 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -15.01% to record $4.19/share.