Lululemon Athletica Inc (NASDAQ:LULU) inventory was final seen buying and selling at $319.20, dismissing international commerce tensions due to a price-target hike from TD Cowen to $373 from $370. The shares are testing their 320-day shifting common earlier than the retailer’s first-quarter report, due out after the shut on Thursday, June 5. This strain might come crashing down quickly, nevertheless, given LULU summer time seasonality.
The athleisure retailer is among the many greatest S&P 500 Index (SPX) shares to personal this month, per Schaeffer’s Senior Quantitative Analyst Rocky White. The shares averaged a month-to-month pop of 9.4% and ended the month greater 80% over the previous decade. LULU can be the one retailer on the record.
A comparable transfer from its present perch would place shares simply shy of $350, clearing that aforementioned ceiling. The safety would additionally hit its highest buying and selling degree since March and prolong its 23% nine-month lead. A spherical of bull notes might maintain tailwinds blowing, as 14 of the 31 corporations in protection name LULU a “maintain” or worse.
There’s additionally quick squeeze potential. Brief curiosity already fell 8% within the final two reporting intervals, but the 5.94 million shares offered quick nonetheless make up 5.4% of the inventory’s accessible float.
LULU has a optimistic historical past of post-earnings reactions, ending six of its final eight next-day periods greater, together with a 16% achieve in December. The safety averaged a 9.2% transfer over the past two years, no matter path, and this time across the choices pits are pricing in an even bigger 13.8% transfer for Friday’s buying and selling.
