BUY, SELL, HOLD (2)

Lululemon Stock Pummeled on Citigroup Downgrade

The equity is up roughly 91% year-over-year, however

Digital Content Manager
Sep 4, 2020 at 10:30 AM
facebook X logo linkedin


The shares of Lululemon Athletica Inc (NASDAQ: LULU) are down 4.3% at $361.46 at last check, after Citigroup downgraded the athleisure retailer to "neutral" from "buy," but raised its price target to $400 from $340. The analyst in question said it believes in the company's potential for short- and long-term growth, but that the security is "pricing in perfection." The retailer also earned a price-target hike from RBC earlier today to $435 from $348.

On the charts, the security has been on an upwards trajectory since early April. Just two days ago, the shares reached an all-time high of $399.89, which is more than double its mid-March lows near the $140 level. And though the stock is cooling off today, the 30-day moving average may be able to contain further pullbacks. Year-over-year, the equity sports a 91% lead.

Analysts were already mostly optimistic towards Lululemon stock coming into today, with 19 of the 29 in coverage sporting a "buy" or better rating, and 10 carrying a tepid "hold." Meanwhile, the stock's 12-month consensus target price of $360.13 is in-line with current levels.

This upbeat sentiment has carried through to the options pits, where calls are popular. The security sports a 50-day call/put volume ratio of 1.62 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 82nd percentile of its annual range. This suggests a healthier-than-usual appetite for bullish bets of late.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.