This trade activity should not be overlooked: Lulu’s Fashion Lounge Holdings Inc. (LVLU)

Lulu’s Fashion Lounge Holdings Inc. (NASDAQ: LVLU) stock jumped 28.37% on Friday to $7.33 against a previous-day closing price of $5.71. With 1.46 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.25 million shares. During the session, the Apparel Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $7.67 whereas the lowest price it dropped to was $6.25. The 52-week range on LVLU shows that it touched its highest point at $21.29 and its lowest point at $5.10 during that stretch. It currently has a 1-year price target of $12.25.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LVLU was up-trending over the past week, with a rise of 34.25%, but this was down by -39.42% over a month. Three-month performance dropped to -26.41% while six-month performance fell -21.69%. A look at the trailing 12-month EPS for LVLU yields 0.13 with Next year EPS estimates of 0.46. For the next quarter, that number is 0.16. This implies an EPS growth rate of -520.80% for this year and 53.51% for next year.

Float and Shares Shorts:

At present, 38.10 million LVLU shares are outstanding with a float of 37.75 million shares on hand for trading. On Jul 14, 2022, short shares totaled 0.53 million, which was 1.36% higher than short shares on Jun 14, 2022. In addition to Mr. David W. McCreight as the firm’s CEO & Director, Ms. Crystal Landsem serves as its Co-Pres, CFO & Sec.

Institutional Ownership:

Through their ownership of 85.46% of LVLU’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.20% of LVLU, in contrast to 23.63% held by mutual funds. Shares owned by individuals account for 21.69%. As the largest shareholder in LVLU with 19.31% of the stake, Canada Pension Plan Investment Bo holds 7,500,000 shares worth 7,500,000. A second-largest stockholder of LVLU, Principal Global Investors LLC, holds 1,573,997 shares, controlling over 4.05% of the firm’s shares. J. Goldman & Co. LP is the third largest shareholder in LVLU, holding 227,493 shares or 0.59% stake. With a 19.31% stake in LVLU, the Canada Pension Plan is the largest stakeholder. A total of 7,500,000 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.03% of LVLU stock, is the second-largest Mutual Fund holder. It holds 399,820 shares valued at 4.34 million. Principal Investors – Small Cap F holds 1.01% of the stake in LVLU, owning 392,900 shares worth 4.26 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LVLU since 8 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LVLU analysts setting a high price target of $22.00 and a low target of $8.00, the average target price over the next 12 months is $12.25. Based on these targets, LVLU could surge 200.14% to reach the target high and rise by 9.14% to reach the target low. Reaching the average price target will result in a growth of 67.12% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. LVLU will report FY 2022 earnings on 03/30/2023. Analysts have provided yearly estimates in a range of $0.54 being high and $0.24 being low. For LVLU, this leads to a yearly average estimate of $0.38. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Lulu’s Fashion Lounge Holdings Inc. surprised analysts by $0.00 when it reported $0.05 EPS against a consensus estimate of $0.05. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $0.23 and the low estimate is $0.15. The average estimate for the next quarter is thus $0.17.

Summary of Insider Activity:

Insiders traded LVLU stock several times over the past three months with 5 Buys and 0 Sells. In these transactions, 20,501 shares were bought while 0 shares were sold. The number of buy transactions has increased to 27 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 31,587,831 while 1,666,818 shares were sold.

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