Lululemon Stock Cools Despite Ambitious 5-Year Plan

Year-over-year, LULU is up 26.9%

Digital Content Manager
Apr 20, 2022 at 10:49 AM
facebook twitter linkedin

The shares of Lululemon Athletica Inc (NASDAQ:LULU) are down 1.7% at $397.75 at last glance, erasing premarket gains. The apparel retailer earlier announced a five-year plan to double revenue to $12.5 billion by 2026, which involves quadrupling international sales and focusing on men's products, in addition to ramping up its digital operations. 

The security has been chopping higher since hitting a March 15, one-year low of $278. The shares were seen trading at their highest level since December this morning, after breaking above long-term pressure from the 40-day moving average in late March. Year-over-year, LULU is up 26.9%.

Analysts are optimistic towards Lululemon Athletica stock. Of the 20 in question, 13 call it a "strong buy," while seven say "hold" or worse. Plus, the 12-month consensus target price of $431.96 is a 7.9% premium to current levels.

The options pits echo that bullish sentiment. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), LULU's 50-day call/put volume ratio of 1.52 stands higher than all readings from the past year. This means long calls have been picked up at a much quicker-than-usual pace in the last 10 weeks.

These options traders are in luck, as LULU's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 85 out of a possible 100, meaning the stock has exceeded options traders' volatility expectations in the last 12 months.


Special Offers from Schaeffer's Trading Partners