Is Stretched Valuation Still Hounding Lululemon Athletica inc. (LULU)? Shares Slump On Earnings Beat

On Citadel Investment Group’s heels is Scopus Asset Management, which is managed by Alexander Mitchell, as it owns some 1.35 million shares valued at $87.91 million following a 23% hike to its stake. Top shareholders of the company who were actually bearish on the stock include Dimitry Balyasny‘s Balyasny Asset Management, which cut its stake by 14% during the quarter to 718,000 shares valued at $46.89 million. He was joined by Israel Englander’s Millennium Management, which slashed its stake by 29% during the June trimester to 348,400 shares valued at $22.75 million.

Insider trading is another useful metric to judge a company’s future prospects and that is why we track such transactions as well. While no insider purchases have been made in Lululemon Athletica inc. (NASDAQ:LULU) this year, prominent insider sales include that by Director Rhoda Pitcher, who has sold some 28,400 shares this year, and Director Thomas Stemberg, who sold 5,300 shares in March.

Investors clearly expected a lot more from Lululemon Athletica inc. (NASDAQ:LULU) than what it was able to deliver today, despite consensus estimates being met. Given the volatility of the stock, its stretched valuation, and growth concerns, we believe there are better opportunities elsewhere in the market.

Disclosure: None