The athleisure retailer took a step back despite two new price-target hikes
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.