Lululemon Athletica (LULU), MBIA Inc. (MBI): Why Insiders Are Buying These Stocks

Let’s move on to Lululemon Athletica (NASDAQ:LULU), which also had no instances of insider buying throughout all of 2016. In fact it had been nearly two years between insider purchases when Co-Chairman of the Board Glenn Murphy purchased 100,000 shares between June 26 and 27 at $55.50 per share. Mr. Murphy had previously owned just 2,616 shares.

The Canadian athletic apparel company’s stock has been volatile in recent years, falling from above $80 in 2013 to less than $40 a year later. The stock then rebounded to $80 again last year before sliding back under $50 this year. The good news for shareholders is that the stock appears to be on the upswing again, gaining over 20% in June, with some of the most recent gains being thanks to the purchase made by Mr. Murphy, who clearly believes the rally isn’t over yet.

Lululemon Athletica (NASDAQ:LULU)’s management appears to be confident that the company has put some of its poor execution behind it and is poised for near- and long-term growth. The company sees big opportunities in Asia and Europe, and also expects strong growth in the sale of men’s apparel, which currently accounts for just 18% of the company’s sales.

31 hedge funds in our database were long Lululemon on March 31, up by one since the end of 2016. However, the company did lose a major bull during the first quarter, as Stephen Mandel‘s Lone Pine Capital sold off its 4.5 million-share position valued at over $292 million.

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