Recent insider trends for Lululemon Athletica Inc. (NASDAQ:LULU) have caught the attention of investors. Insider data is useful because it can reveal what a company’s executives and largest shareholders feel about a stock. In this case, the data has some interesting things to say about how LULU might perform in the future.
Institutions own 89.14% of Lululemon Athletica Inc. (LULU)’s shares. The total value of these holdings, in millions, is $7,019. Among active positions in the latest quarter, 174 holders increased their positions by a total of 22.59 million shares, 169 holders decreased the positions by a total of 19.76 million shares, and 51 holders held their positions. This works out to a net increase in ownership of 2.82 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 64 holders initiated new positions by a total of 9.51 million shares and 69 holders exited their positions by a total of 4.56 million shares. This nets out to an increase of 4.95 million shares and is a bullish sign for LULU.
In the last three months, insiders executed a total of 2 trades. 1 of these were buys and 1 were sells. Insider ownership increased by a total of 631 shares, which suggests that LULU’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 21 buys and 16 sells, and ownership increased by a net of 126366 shares.
Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Lululemon Athletica Inc. (NASDAQ:LULU)’s short interest is 7.22 million shares, or 6.75% of the float. This represents a decrease of -7% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.
In light of the insider ownership and trading data it makes sense to consider technicals to see if they come to a similar conclusion about the outlook for LULU. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that LULU is a Weak buy, which implies that LULU is expected to outperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Lululemon Athletica Inc. (NASDAQ:LULU) is undervalued.